CII Study Reveals Rising Focus on Quality Among Indian Manufacturers in Automotive, Chemicals

Sandip Raj Gupta

    18/Feb/2025

What's covered under the Article:

  • Indian manufacturers are focusing more on quality, with automotive and chemicals leading the charge.
  • CII's report highlights challenges for SMEs, including high costs and lack of skilled labor.
  • The study emphasizes the need for technology investments, upskilling, and aligning with international standards.

India’s Manufacturing Sector Embraces Quality Transformation, Says CII Study

Indian manufacturers are increasingly focusing on quality as a strategic differentiator, according to the Confederation of Indian Industry (CII) Manufacturing Competitiveness Study. The study, titled ‘Raising the Standard: Quality Transformation of Indian Manufacturing,’ reveals that sectors such as automotive and chemicals are leading the way in adopting global certifications and quality standards.

  • This emphasis on quality aligns with India’s goals to enhance its manufacturing competitiveness on the global stage. The adoption of international benchmarks is helping industries like capital goods and fast-moving consumer goods (FMCG) drive exports and increase revenues.
  • However, while these efforts have led to substantial progress, challenges remain, particularly for small and medium enterprises (SMEs) that face high implementation costs, limited access to technology, and shortages of skilled labor.

Challenges Hindering Quality Consistency

Despite the positive strides made in quality improvement, the CII report highlights several hurdles that need to be addressed. The lack of national standard clarity and inadequate testing infrastructure pose significant challenges to achieving consistent quality across industries.

  • These obstacles create uncertainty and lead to inconsistencies in product standards, hindering the competitiveness of Indian manufacturers in international markets. To overcome these challenges, the report calls for targeted investments in technology, stronger upskilling initiatives, and greater alignment with global standards.

Strategic Solutions for India’s Manufacturing Growth

The CII study proposes several strategic measures to boost the quality of Indian manufacturing, particularly in SMEs. Key recommendations include:

  • Implementation of robust Quality Management Plans (QMPs) to ensure compliance, reduce defects, and enhance product consistency.
  • Strengthening vendor management and fostering a quality-first culture across industries.
  • Integration of digital tools in the manufacturing process to improve overall quality and reduce inefficiencies.

By focusing on these strategies, the study suggests that India can enhance its manufacturing capabilities and position itself as a global manufacturing powerhouse.


India’s Path to Global Manufacturing Leadership

As the global marketplace becomes more competitive and demanding, quality is emerging as a crucial strategic differentiator for Indian manufacturers. The CII leaders emphasize that India must not only improve its internal manufacturing standards but also adopt proactive quality management to maintain its competitiveness.

  • The quality transformation of Indian manufacturing is expected to play a key role in India’s economic growth, as the country aims to capture a larger share of global supply chains and establish itself as a leader in international markets.
  • India’s manufacturing sector will benefit greatly from continuous quality improvements and a focus on international standards. By aligning with global trends, Indian manufacturers can strengthen their export potential and ensure long-term success in a highly competitive environment.

Conclusion

India’s manufacturing sector is undergoing a significant quality transformation, with the automotive and chemicals industries at the forefront of adopting global quality standards. While SMEs face challenges in achieving these standards, the CII study emphasizes the importance of investment in technology, upskilling, and alignment with international benchmarks to foster a more competitive and sustainable manufacturing ecosystem. By positioning quality as a key strategic focus, India has the potential to become a dominant force in global manufacturing.


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