The China+1 strategy is gaining prominence and a lot of investment is going to South-East Asia and therefore it is crucial for industries in Karnataka to work together to capitalise on these openings, urged Gunjan Krishna, Commissioner for Industrial, Development & Director Industries & Commerce.
China+1 is a strategy that encourages companies to minimise their supply chain dependency on China by diversifying the countries they source parts from.
Mr. Krishna said: “The world was at an inflection point, experiencing significant changes, especially after the pandemic. The pandemic accelerated existing changes, presenting with fourfold challenges as well as opportunities”.
“Firstly, we need to address climate change and we need to minimise environmental impact in our manufacturing processes. The second challenge involves navigating geopolitical dynamics and seizing opportunities amid global uncertainties,’‘ she added.
According to her, the third challenge revolves around the increasing use of AI in global manufacturing. While advanced countries move towards robotics, in a country like India with a vast population, balancing AI adoption with employment generation is critical.
The fourth challenge stemmed from global demographic shifts and she added: “Aging populations in some countries create opportunities for us if we can provide competitive manufacturing solutions. However, we must be vigilant and innovative, as industries seek efficient and automated processes”.
She was addressing industry captains at the BCIC Manufacturing Conclave here on Friday,
Automation very low in Indian manufacturing
Automation played a pivotal role in the success of the manufacturing sector, but its adoption in India remained low and required immediate attention, said S Devarajan, president, BCIC & senior vice-president, TVS Motor Company.
“It is imperative to address this issue urgently. A holistic approach encompassing product, process, and sustainability is essential. Efforts should be directed towards enhancing energy efficiency and implementing a circular economy in our processes,” he suggested.
India has the capacity to achieve a growth rate ranging from eight to 10% by 2030, with the primary driver being the manufacturing sector, particularly the MSME segment, he further added.
