CONTENTS
- Policy Reforms Crucial to Make India a Manufacturing Hub
- The Factory of The Future Will be Data-Driven And AI-Optimised
Policy Reforms Crucial to Make India a Manufacturing Hub
Context:
India needs a collaborative effort from both the government and industry stakeholders to establish itself as a prominent global manufacturing hub.
Relevance:
GS-3
- Industrial Policy
- Infrastructure
- Growth and Development
Mains Question:
India requires a comprehensive and coordinated effort from the Government and industry players to become global manufacturing hub. Analyse. (10 Marks, 150 Words).
Manufacturing Sector in India:
- With the rapid expansion of India’s manufacturing sector, the nation is on the verge of becoming a significant global manufacturing force.
- Currently ranked among the top three preferred global manufacturing locations, India has the potential to elevate its exports to an impressive $1 trillion USD by 2030.
- India’s manufacturing sector significantly contributes to the nation’s economic growth, constituting approximately 15% of the Gross Domestic Product (GDP) and employing around 12% of the workforce.
- This sector is diverse, encompassing various industries such as textiles, pharmaceuticals, automobiles, and consumer durables.
- In recent years, the Indian government has launched several initiatives to bolster the manufacturing sector, including the “Make in India” campaign.
- The campaign aims to elevate the manufacturing share in the country’s GDP and foster the growth of domestic manufacturing.
- Additionally, the government has established special economic zones (SEZs) to attract foreign investments into the sector.
- Despite these endeavors, the manufacturing sector in India has encountered challenges, including inadequate infrastructure, a shortage of skilled labor, and difficulties in securing credit.
- Furthermore, the sector has been impacted by a global demand slowdown and heightened competition, particularly from countries like China.
- These challenges present opportunities for sectoral growth, and with sustainable reforms, the manufacturing sector is anticipated to maintain its pivotal role in the ongoing development of the Indian economy.
- However, amid the various supply chains, the challenges and opportunities in Indian manufacturing are particularly evident in the wooden pallet sector.
- To strengthen its position in the pallet industry, essential policy reforms are required for sustainable growth and global leadership.
Areas of Policy Reforms:
| Infrastructure Development | India must prioritize the development of robust infrastructure, encompassing transportation, power, and telecommunications, to support the manufacturing sector. The government should invest in creating modern industrial parks, logistics hubs, and efficient transportation networks to reduce manufacturing costs and enhance competitiveness. |
| Sustainable Manufacturing | In an era of heightened environmental awareness, the adoption of sustainable and eco-friendly manufacturing practices is becoming increasingly critical. The government should incentivize manufacturers to embrace green technologies and sustainable processes by providing incentives and enforcing regulations that promote environmental responsibility. This not only aligns with global trends but also enhances the reputation of Indian products in international markets. |
| Simplified Regulations | The complex regulatory environment in India poses bureaucratic challenges for businesses. Streamlining regulations and fostering a more business-friendly atmosphere will stimulate investment and growth in the manufacturing sector. Implementing a single-window system for approvals, clearances, and licenses can significantly enhance the ease of doing business. |
| Tax Reforms | Establishing a competitive and steady tax framework is crucial to attract investments. India should streamline its tax structure, ensuring transparency and predictability. Lowering corporate tax rates, offering incentives for research and development, and endorsing innovation through tax breaks will incentivize manufacturing companies to invest and conduct operations in India. |
| Trade Policies and Foreign Investment: | India’s trade policies and foreign investment regulations play a pivotal role in attracting global manufacturers. The government should persist in implementing policies that support domestic manufacturing, reduce import dependence, and encourage foreign investment in the manufacturing sector. |
| Government Schemes | To promote domestic manufacturing and bolster India’s share of global exports, the government has introduced Production-Linked Incentive (PLI) schemes. These initiatives encourage investments in manufacturing and provide incentives across various sectors, contributing to the growth of the manufacturing industry. |
| Skilled Labour Development | India’s educational framework needs to evolve to meet the evolving demands of the economy by delivering pertinent skills training. It is imperative to tackle the deficit of skilled labor in the manufacturing sector for consistent growth. The government ought to concentrate on fostering suitable skill sets among the workforce to align with the requirements of contemporary manufacturing. |
Conclusion:
By enacting the recommended policy changes, India has the potential to establish a favorable environment for the expansion of manufacturing, draw in investments, and assert itself as a significant participant in the global manufacturing arena. The effective implementation of these reforms will not only stimulate economic growth but also generate job prospects, elevating India’s stature in the realm of international trade and commerce.
The Factory of The Future Will be Data-Driven And AI-Optimised
Context:
Harnessing the capabilities of artificial intelligence (AI), astute manufacturers are experiencing substantial and quantifiable business advantages. Configured systems crafted by manufacturing AI experts can expedite deployment, integration, security, and management, ensuring solutions tailored for smart manufacturing use cases.
Relevance:
GS3- Science and Technology- Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-technology and issues relating to Intellectual Property Rights.
Mains Question:
By drawing on the power of AI, smart manufacturers are realising the very tangible and measurable business benefits. In this context, discuss the utility of AI in transforming the manufacturing sector and the challenges in this regard. (15 Marks, 250 Words).
About Artificial Intelligence:
- AI refers to the capacity of a computer or a robot under computer control to execute tasks typically carried out by humans, involving human-like intelligence and discernment.
- While there isn’t currently AI capable of undertaking the diverse range of tasks performed by an average human, certain AI systems excel in specific tasks, matching human capabilities in those domains.
Types of AI:
Key Features and Components:
- An essential trait of artificial intelligence is its capacity to reason and take actions geared towards achieving specific objectives optimally. Machine Learning (ML) represents a subset of AI.
- The incorporation of Deep Learning (DL) techniques facilitates automated learning by assimilating extensive amounts of unstructured data, encompassing text, images, or video.
- This process enhances the system’s ability to make informed decisions and perform tasks with increasing efficiency.
AI in the Manufacturing Landscape:
- In the manufacturing landscape, the production environment, referred to as “the edge,” is the focal point where data is generated by cameras, sensors, machinery, and assembly lines.
- Enterprises are adeptly collecting and interpreting data from these sources, or automation control systems linked to them, utilizing edge computing technologies.
- The synergy of artificial intelligence (AI) and streaming data analytics is employed to scrutinize this data, facilitating swift insights for prompt decision-making and immediate action.
Benefits of AI’s Application in the Manufacturing Edge:
- AI enables the tracking of parts throughout the entire production cycle, identifying defects in real-time and swiftly tracing them back to specific processes or components.
- Predictive maintenance systems driven by AI leverage sensor and IoT data to precisely pinpoint maintenance requirements, allowing proactive prediction and prevention of equipment failures.
- AI-based augmented reality (AR) systems empower off-site specialists to virtually visit the factory, evaluating situations and guiding on-site workers.
- This technology aids in understanding situational context and provides step-by-step demonstrations for untrained workers to perform complex tasks.
- The integration of real-time data, combined with potent tools like edge computing, AI/ML, and streaming analytics, is fostering the emergence of smarter factories.
- The integration of edge computing, AI, and streaming data analytics is particularly prevalent in use cases such as predictive maintenance, computer vision, production quality, and digital twins.
- These use cases involve analyzing extensive volumes of multi-dimensional data, including images, audio, and sensor readings from connected devices and equipment.
Conclusion:
Deploying AI at the manufacturing edge offers compelling advantages but also presents unique challenges that necessitate careful consideration for successful implementation. Manufacturers leveraging these technologies and use cases can deliver innovative, high-quality products at competitive prices, meeting profitability, sustainability, and safety goals. By leveraging the power of AI at the edge, intelligent manufacturers gain a significant edge in a fiercely competitive global marketplace, enabling differentiation and competitiveness.
