Last year, India enacted a National Manufacturing Policy (NMP) to encourage manufacturers, especially small and medium-sized enterprises (SMEs), to move in a new direction. The policy calls for massive changes in the manufacturing sector, which mean terrific sales opportunities for U.S. equipment exporters.
India is the 11th largest economy in the world by GDP (gross domestic product), and the fifth largest by purchasing power parity. India’s GDP is estimated to grow 8 percent from 2012 to 2017.
India’s NMP establishes a number of core objectives for manufacturers. The policy calls for an increase of 12 to 14 percent growth in the manufacturing sector over 15 years. Manufacturers will be tasked with creating 100 million jobs by 2025 with an emphasis on inclusive growth, which means creating appropriate skill-sets among rural migrants and the urban poor. The policy also aims to increase the depth in Indian manufacturing, enhance its global competitiveness, and sustain growth without further harm to the environment.
India’s government obviously will have to improve the country’s infrastructure and dismantle trade barriers to help manufacturers achieve these goals. However, the burden of expansion will predominantly fall on individual manufacturers.
What do these objectives mean for U.S. industrial equipment manufacturers? India’s manufacturing sector needs outside help to meet the government’s growth plans. U.S. equipment exporters can therefore find a wealth of opportunity to expand sales by researching and targeting Indian manufacturers looking to increase capital expenditures for industrial equipment. Indian SMEs are a great place to start.
India’s Manufacturing Sector Today
Most Indian manufacturing firms are currently using lower-level, basic industrial equipment and automation technology. To ensure that the country’s NMP gains traction, manufacturers investing in new industrial equipment will also have to develop employee skills and education to enhance production. India’s manufacturers will need to establish training programs for a variety of in-house jobs, such as machinists, maintenance engineers, and welders, as well as floor managers. Some manufacturers are currently establishing technical institutes, using their own managers and employees of key vendors to train staff.
As for the sectors that are specific growth targets, NMP deems defense, aerospace, capital goods, and ship building as essential for meeting its manufacturing objectives. To bolster its global competitiveness, Indian manufacturers in the automotive, pharmaceutical, petrochemical, electronics, chemical, and paper fields are targeted for developing production capacities. Manufacturers in the textiles, food processing, leather goods, and jewelry fields offer maximum expansion in employment necessary to advance the country’s job creation goals.
U.S. industrial equipment manufacturers that can interact, collaborate, and truly learn what manufacturers in these arenas need to succeed will be ahead of the game.
Doing Business With Indian Manufacturers
Mid-tier U.S. equipment manufacturers looking to expand their global footprint in India should note that Indian manufactures are specifically looking for equipment that reduces the complexity of operator control.
U.S. exporters doing business in India also would be wise to invest in training and skill programs for their customers. Many find that establishing apprentice training programs that meld the best of Western curriculums with Indian practices prove to be the most successful processes. Additionally, U.S. exporters who can assist Indian manufacturers with production planning, supply chain management and quality control will find many are eager to improve how they work to become efficient, lower-cost producers.
Also, building a strong potential customer network is critical in India. Indian buyers value reputation and brand. U.S. exporters are well advised to exhibit at trade fairs in India and abroad that specifically cater to Indian visitors. Attending such events offers a great opportunity to target Indian manufacturers investing in new equipment and to solidify brand recognition.
As for price, demand for exported equipment will often dwell on lower price more than higher-production needs. Therefore, being able to showcase and discuss high-quality solutions with Indian manufacturers is critical to avoid cost dominating the purchase decision.
If Indian manufacturers can embrace the goals outlined in India’s NMP, and the government takes the necessary steps to enhance infrastructure, the country is a strong candidate to become the world’s leading manufacturer of select consumer and industrial goods, as well as labor intensive products.
Equipment Trade Shows Focus on India
If a business is looking to export to India, a good place to start is to attend two industrial equipment trade shows that attracts Indian manufacturers.
As noted in sister publication IMT Machining Journal, EMO Hannover, the world’s largest machine tool trade show, is taking India’s manufacturing growth to heart with a half-day seminar offering companies an opportunity to dialogue with Indian customers to better comprehend their equipment needs. Taking place from Sept. 16 to 21, EMO Hannover expects to attract more Indian visitors to the show than any other nation except Germany.
The World of Industry India event, scheduled from Dec. 17 to 20 in New Delhi, will showcase a complete range of products and services for manufacturers. Both this event and Hannover Messe, the world’s largest industrial technology trade show, feature hydraulics and pneumatics, automation components, factory automation systems, materials handling equipment, logistics and infrastructure systems, surface technology products, electroplating, laser cutting systems and composites. Housing all of these new products in one venue in India and one in Germany attracts many Indian manufacturers seeking highly-qualified global equipment exporters.
The Indian government is actively pushing its manufacturers to boost economic prosperity. U.S. industrial equipment exporters, who act now, will find a wealth of Indian manufacturers looking to improve productivity and bolster their operations.
