CHALLENGES AND OPPORTUNITIES IN INDIAN MANUFACTURING INDUSTRIES

Abstract

 The Indian manufacturing industry is on the verge of a major paradigm shift. This shift has the capability of transforming the industry from adopting mass production strategy, way beyond lean manufacturing strategy into a world of agile manufacturing. The manufacturing industry faces numerous challenges in todays globalise business environment. The critical challenges, the manufacturing industry currently faces are

• Sustaining in an intense global competition.
• Procuring and maintaining skilled workforce.
• Handling cost pressures.
• Adapting quickly to different consumer demands (agile manufacturing)

Global economy refers to individuals and firms that conduct business transactions within the market throughout the world. (Taylor 2008). The global economy, according to Taylor is economic freedom. This freedom to all companies and individuals makes them to engage in the merchandise of goods and services with any country throughout the globe. Globalisation is the ability to hire workers anywhere in the world to produce goods or provide services (Longworth 2008). It forces companies to compete with companies around the world. (Longworth). Global allows manufacturers to have an enhanced access towards developing markets. Companies in the global environment, has the facility of moving and establishing its production operations anywhere in the world where the materials and expertise are available with low labour costs. As every coin has two sides, globalise environment leads to a fierce competition.

 There are two factors considered as major towards reshaping manufacturing industry competition. One is the technology revolution, facilitating enhanced productivity at reduced costs. The other is the remarkable reduction in trade barriers, especially in relation to manufactured goods. Manufacturers experience both advantages and disadvantages while competing in global markets. Emerging markets offer global manufacturing companies, investment opportunities and therefore developing nations invest in technological advances and in modern equipments and machinery to produce cutting edge products. Investments in research and development, deteriorated largely. This erosion of investment in research and development affects the manufacturers directly in recruiting and funding high-calibre scientists, engineers, researchers and other staff.