India’s aspiration to surpass China and establish itself as a global manufacturing hub is fraught with significant challenges, according to NR Narayana Murthy, co-founder of Infosys. At the ‘ELCIA Tech Summit 2024,’ Murthy conveyed his doubts regarding India’s capacity to match China’s manufacturing dominance, emphasizing the necessity for enhanced government involvement and public governance for India to achieve meaningful progress in this domain.
Murthy advised caution against the premature use of ambitious terms like “hub” and “global leader.” He pointed out, “China has already become the factory of the world. Around 90% of things in supermarkets and home depots in other countries are manufactured in China. They have six times the GDP of India. It is too audacious of us to say India will become the manufacturing hub.” This comparison highlights the considerable gap India must close to compete with China’s manufacturing capabilities.
Murthy elaborated that while the IT sector benefits greatly from exports, the manufacturing industry relies heavily on domestic contributions and governmental support. He noted, “For manufacturing, by and large, the domestic contribution is more, and the government plays a big role in the success of manufacturing. Unfortunately, the response time, transparency, accountability, speed, and excellence in public governance in a country like India still need to improve.” He stressed the importance of reducing the interface between government and industry to promote manufacturing growth.
Additionally, Murthy addressed the critical need for entrepreneurs to better evaluate market conditions and use simple mathematical models to increase value. He explained, “Entrepreneurs need to learn to assess the market and estimate the possible size they can capture. They must be able to produce simple mathematical models to bring higher value leverage, vis-à-vis all other ideas in the market. This knowledge and talent are mandatory for success.”
Looking to the future, Murthy expressed confidence in the resilience of human creativity in the face of advancing AI. He asserted, “AI will not replace designers and individuals implementing large-scale application systems, simply because they are too complex. There will have to be huge data dictionaries, data programs, and interconnectivity between all. The creativity and power of the human mind are superior to this system.”
