REGIONAL REPORT
To become globally competitive , India ’ s manufacturing value chains must raise their productivity — in GVA output per full-time-equivalent worker — closer to global standards . Labour productivity and capital productivity are both low .
“ Compared to India , manufacturing productivity in Indonesia is twice as high ; in China and South Korea , productivity is four times higher . While other developing economies , such as China , have managed to catch up with advanced economies in capital productivity , India ’ s capital is only about two-thirds as productive as China ’ s . Improvements to key manufacturing processes could increase the productivity of Indian companies in the chosen value chains by a factor of five — with a tripling of labour productivity and a capital-productivity increase of one and a half to two times . By adopting Industry 4.0 and automation technologies and investing in analytics , reskilling and upskilling , Indian manufacturers could accelerate the capture of many of these gains ,” highlighted the report .
Policy reforms that help create better infrastructure and logistics could also help Indian manufacturing become more productive . Many of the country ’ s manufacturers particularly need the ecosystems of nearby suppliers . For example , companies that make high-tech goods ( such as computers , electronic and electrical equipment , and telecommunications equipment ) must have reliable access to components . By providing incentives to suppliers that operate within port-proximate exportprocessing ( or coastal / coastal economic ) zones , policy-makers can make a tremendous difference in favour of Indian manufacturers , argued the report .
“ Other opportunities for Indian manufacturers to boost their productivity include offering more value-added goods , with higher product quality , better packaging and stronger brands . Such enhancements would allow them to command higher prices , leading to one and a half to three times higher GVA ( for example , in food processing , capital goods , steel and steel products ). Better returns would help them attract more capital and , as their profits increase , they could reinvest their capital surpluses rather than seek outside investment ,” it added .
India Automotive Highlights
( According to ResearchandMarkets . com )
■ The ‘ 2-3.5 Tons ’ segment is anticipated to expand at the fastest CAGR , exceeding 15.5 % over the forecast period in the light commercial vehicle segment , owing to their compact size and relatively lower prices .
■ The hatchback segment held the largest market share of 49.17 % in 2019 . This share is attributed to the increasing use of small passenger vehicles by middle-class families .
■ The ‘ Over 25 Ton ’ segment held almost half of the total heavy trucks market in 2019 . This is attributable to the rising use of heavy trucks in the construction and mining industry .
■ The three-wheeler segment is anticipated to expand at a CAGR of 10.6 % over the forecast period . Passenger transport over short distances is the primary factor driving segment demand .
Indian automotive market
India ’ s automotive market demand is expected to reach 6,920,991 units by 2027 and is anticipated to register a CAGR of 11.3 % from 2020 to 2027 , according to a new report by ResearchandMarkets . com .
India ’ s automotive market demand is expected to reach 6,920,991 units by 2027 and is anticipated to register a CAGR of 11.3 % from 2020 to 2027
“ Automotive demand is driven by the rapid adoption of technology and strong policy support from the government . Additionally , increasing awareness about environmental concerns resulting in the adoption of alternate fuel vehicles ( CNG , EVs ) is , in turn , is driving market growth ,” said the report .
Technological advancements in the entire supply chain are anticipated to drive the market in the next seven years . For instance , companies are adopting alternate channels such as e-commerce websites to sell vehicles . Selling commercial vehicles through e-commerce websites helps OEMs to widen their distribution network and reduce infrastructure and labour costs .
“ Amidst the pandemic , the need to adhere to social distancing norms has encouraged consumers to invest in personal mobility options . This demand for personal transport options is a silver lining for automakers and is expected to marginally favour the growth of India ’ s automotive industry over the forecast period ,” added the analyst .
Isolated transport options are emerging as the need of the hour , with several consumers opting for entry-level cars amid economic uncertainties . Shared mobility is expected to take a hit in the light of this ongoing trend . As the trend is significantly impacted by the consumer ’ s spending power , it is expected that consumers with high spending capacity will dominate the sales of personal transportation options , according to the report .
India ’ s education system
On 28 January 2021 , the Government of India and the World Bank signed a US $ 500- million Strengthening Teaching-Learning and Results for States Programme ( STARS ) to improve the quality and governance of school education in six Indian states - Himachal Pradesh , Kerala , Madhya Pradesh , Maharashtra , Odisha and Rajasthan . Some 250 million students ( between the ages of 6 and 17 ) in 1.5 million schools , and over ten million teachers , will benefit from the programme .
The STARS programme builds on the long partnership between India and the World Bank ( since 1994 ), for strengthening public school education and to support the country ’ s goal of providing ‘ Education for All ’. Prior to STARS , the Bank had provided total assistance of more than three billion dollars towards this goal .
“ India ’ s National Education Policy 2020 envisages equitable and inclusive education for all . The STARS project will help carry this vision forward ,” said C S Mohapatra , Additional Secretary , Department of Economic Affairs , Ministry of Finance . “ It will strengthen early childhood education and foundational learning ; facilitate school to work transition through vocational education ; improve learning assessment mechanisms and support teacher development . This will help in the economic and social progress of the country ,” he added .
“ India recognizes the need to significantly improve its learning outcomes to fuel future growth and meet the demands of the labour market . STARS will support India ’ s response to this challenge by strengthening implementation at the local level , investing in teacher capacity and ensuring that no child of any background is left behind from the right to education ,” explained Junaid Ahmad , World Bank Country Director in India . n
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