The global shift toward innovation-driven manufacturing demands high-tech capabilities, advanced R&D, and skilled manpower. For India, aligning policy, education, and infrastructure is crucial to remain globally competitive.

Global Manufacturing Shift

• Trend: Movement toward innovation-driven, medium-high and high-tech products.
• Drivers: Advanced R&D, technological sophistication, high-skill workforce, and complex supply chains.
• External Impact: U.S. high tariffs may reshape the global manufacturing landscape.
• Policy Need: Regardless of tariff dynamics, nations must adopt foundational policy reforms.

India’s Manufacturing Challenge

• Historical Efforts: Since 1991 reforms, India has launched:
  • National Manufacturing Competitiveness Programme (NMCP) – 2005
  • Make in India – 2014
• Sectoral Boost: Notable impact on electronics, pharmaceuticals, and automobiles.

Key Indicators (2023, World Bank)

• Innovation Productivity: U.S. ($159K), Germany ($103K), Taiwan ($79K), China ($21K)
• Urgent Need: Boost per capita value and productivity via innovation.

Revamping Technical Education

• Global Best Practices: Rely on R&D, skill development, and university linkages.
• Admission Reform: Shift from toughness to testing creativity and problem-solving.
• Curriculum Overhaul:
  • Reduce over-reliance on grades/notes.
  • Encourage higher-order thinking and innovation.
• Practical Exposure:
  • Allocate 50% curriculum to hands-on work.
  • Establish advanced labs, tool rooms, and assembly lines.
  • Focus on product design, development, and R&D skills.

Reinforcing Core Engineering

• Strategic Technologies: AI and IT are essential, but must not overshadow core engineering.
• Focus Areas: Civil, Mechanical, Electrical, Electronics, Chemical, Textile, Biotech, etc.
• Action Plan:
  • Build robust engineering units.
  • Develop technical & managerial capabilities.
  • Construct infrastructure and systems tailored to diverse terrains.
  • Invest in engineering and R&D infrastructure with efficient supply chains.

Building an Innovation Ecosystem

• Global Lessons: Success in Silicon Valley and East Asia due to strong innovation ecosystems.
• India’s Advantage: Strong service startup ecosystem.
• Need: Replicate this in manufacturing.

Key Steps

• Manufacturing Parks:
  • State-specific, with plug-and-play infrastructure.
  • Enable rapid setup, prototype development, and in-house facilities.
• Support Systems:
  • Access to design software, testing tools, and product certification.
• Academic-Industry Linkage:
  • Align engineering curricula with industry skills and R&D.
  • Encourage manufacturing startups through lab infrastructure.

Strategic Recommendations

• Research Labs: Set up advanced R&D labs.
• Infrastructure: Build industrial infrastructure for scaling.
• Investment Need: Raise R&D spend from 0.65% to 2% of GDP.
  • Allocate 1% of GDP for industrial infrastructure.
• Policy Framework: Design agile, innovation-centric policies aligned with global trends.

Conclusion

To transform manufacturing, India must revamp education, build core engineering strength, foster an innovation ecosystem, and increase R&D spending—anchored in a forward-looking industrial policy responsive to global shifts.