Technology crucial for innovations and productivity in manufacturing

Technology adoption, organization of SMEs in clusters and behavioural changes key to boosting manufacturing sector

pratap

Pratap Vikram Singh | April 16, 2014



To make manufacturing sector an engine of growth, the government had committed itself to increase the share of manufacturing in the GDP to 25 percent by 2022. This, however, could only be achieved through promotion of small and medium enterprises (SME), increasing the adoption of information technology to enhance the productivity in manufacturing and infrastructure sector.

The same was deliberated by a panel of experts at a CII summit titled ‘Technology: a catalyst in driving growth in Indian industry’.

Delivering the keynote address, Arun Maira, member, planning commission, said, “We need small and medium enterprises to grow. Only when the SME grow, it will be able to feed large industries. There has to be a healthy ecosystem of SME, lest we will be unable to create 100million jobs in the coming years.”

He said the SME need to organize themselves in clusters and create common sharable resources. This way they can optimally utilize resources and grow faster. He said the technology is useful in streamlining processes and hence must be available to the SMEs.

He said that technology should also be used for innovation and decentralization of the manufacturing so that more and more people could participate and contribute in the overall growth and development.

Shibulal, managing director and chief executive officer, Infosys Ltd, talked about how the Indian IT major, set up in 1981, grew exponentially from a 4,000-people organization to an organization of more than 1.5 lakh employees. He said the drastic reduction of cost of communications technology and transactions has made a stronger case of technology adoption.

He cited an example of how technology has helped in reforming the supply chain for even shop owners and distributors. A simple SMS communication between shop owners and distributors, he said, has optimized the supply chain and reduced the transaction cost between the two parties.

There is a need for creating employment in a distributed fashion, and this could be done through SMEs. The technology could be an enabler, he said.  Besides, the IT adoption gives a competitive advantage.

Arguing that India is a country of contradictions, he said while IT sector employs over 2 million people, over 16 million children remain out of school.  While 70 percent of the healthcare facilities are concentrated in urban areas, a similar percentage of people live in villages.

Here too technology can play a key role in bridging the gap in terms of health, education, banking, employment, manufacturing and services.

The panel included Bhaskar Pramanik, chairman, Microsoft Corporation andNeil Wilson, executive director and partner, Pricewaterhouse Coopers India.

Comments

 

Other News

Railways suffered over Rs 33,000 crore loss on passenger service: CAG

  The Railways was unable to meet its operational cost of passenger and other coaching services. During 2014-15, there was a loss of Rs 33,821.70 crore on passenger and other coaching services. The freight services earned a profit of Rs 38,312.59 crore which indicated that 88.28 percent

“Return land to tribals after mining is over”

Seasoned BJP parliamentarian Nand Kumar Sai, who took charge as the chairperson of the National Commission for Scheduled Tribes (NCST) on February 28, has his work cut out for him. Archana Mishra caught up with Sai, 71, on his first day in office where he

Should there be automatic termination as member of parliament if that person takes oath as minister/chief minister in a state?

Should there be automatic termination as member of parliament if that person takes oath as minister/chief minister in a state?

Ganga, Modi and people’s unwavering faith

When the truth was a few steps away from Modi’s gaze In November 2014, prime minister Narendra Modi made his first visit to his constituency Varanasi and launched a massive cleanliness drive at Asi ghat, which was covered in mud and silt. When locals sa

Schooling improved in India, shows HDI

India has slipped one spot in the Human Development Index 2016. India’s HDI value for 2015 is 0.624 — which put the country in the medium human development category - positioning it at 131 out of 188 countries and territories.   Between 1990 and 2015,

IIFCL gives Rs 3.5 crore for cancer treatment

An appeal was made to PSUs to contribute funds under their CSR Scheme towards Health Minister’s Cancer Patient Fund-CSR for treatment of poor cancer patients.    India Infrastructure Finance Company Limited (IIFCL) contributed an amount of Rs 7.5 crore in 2015-16.

Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter