Information and communication technologies are the path to growth, a study has said.
The National Association of Software and Services Companies (NASSCOM) and the National Manufacturing Competitiveness Council (NMCC) said the manufacturing sector in India needs to go in for information and communication technologies, called ICT, in a big way for robust growth.
The report points out that over the last couple of years the contribution of the manufacturing sector in the country’s GDP (gross domestic product) has been stagnant at around 15 per cent. In comparison the manufacturing sector contributes 39.3 per cent of GDP in China, 35.2 per cent in Thailand, 31.1 per cent in Malaysia
and 24.7 per cent in Indonesia.
“Information and communication technologies could be the transformational catalyst to accelerate the growth and make the industry globally competitive. The report recommends to have shared responsibilities between government, technology companies, associations, academia and the manufacturing firms,” said Som Mittal, president, NASSCOM.
“Auto industry not only has become globally competitive but India is rapidly becoming an innovation hub for small cars for many of the global and Indian auto majors. The success of Indian auto industry needs to be replicated by many other verticals in order for the Indian manufacturing sector to enter and sustain a strong growth trajectory,” said the report.
“It also helps in developing new business and strengthens customer relationships,” said Pari Natarajan, CEO, Zinnov Management Consulting.
ICT systems help streamline supply chains and finances and provides an edge in marketing and sales, Natarajan said.