New Delhi: Breaking the price performance envelope by integrating manufacturing with ecological sensitivity and strength of IT, there would be more jobs in India, according to Prof C K Prahalad, thinker and Paul & Ruth McCracken distinguished University Professor, University of Michigan, at CII’s 6th Manufacturing Summit being held in Mumbai.
While India can celebrate the success of continuity and progress, there still lies the new manufacturing challenge that cannot be denied and we need to look at a way forward. Touching upon the past six years’ hurdles which the manufacturing industry had faced and the comparison between India and China, Prof Prahalad said that Indian industry has cracked the Bottom of the Pyramid (BOP) code. And even while India continues to be one of the fastest growing markets, it can still crack the price of envelope and make its fortune.
While the GDP paradigm shift from 5-6% to 9% has been achieved, there are requirements on getting 10% growth and creating jobs globally. India’s capacity to influence global industry evolution depends on the ability to build new business models, balance between domestic and export dependence for growth, ability to grow at 10% per year and create 10 million new jobs per year.
The consensus was that while manufacturing companies have acquired new assets and the capacity to raise capital and access to global markets, there is need to further integrate people, design manufacturing with world class facilities and quality, leverage domestic market and create capacity for new practices in these businesses.
There is also need to focus on project management, global perspective and deep domain knowledge within the HR and legal fields.
Hardware and software eco systems must be leveraged to create a new concept of manufacturing excellence. For, the real big opportunity lies in fundamentally changing the price performance envelope around the world.
While India has broken the myth of low class; middle and the rich and has the ability to provide service to all as one, what is interesting is breaking the curve and collapsing the poor middle class into one system. The distinction between the classes is irrelevant.
The key concern of the manufacturing industry is the stress on ecology and its impact thereof. Prof Prahalad specifically stressed on water with respect to quality, its availability and usage and emphasized on the need to move from regressive fuel to progressive fuel that is depleting the health.
He summed up by saying that the paradigm shift needs imagination to be the global leader fuelled with passion, courage, humanity, humility and intellect.