India's Manufacturing Dreams 'Audacious' Compared To China's Six Times Larger GDP: Narayana Murthy

Infosys co-founder NR Narayana Murthy said around 90 per cent of products in supermarkets and home depots globally are made in China and they have six times the GDP of India

Narayana Murthy highlighted that minimising the interface between government and industry is vital for nurturing manufacturing growth.

Source : PTI

India's goal to outpace China and emerge as a global manufacturing hub is fraught with challenges, according to NR Narayana Murthy, co-founder of Infosys. Speaking at the 'ELCIA Tech Summit 2024', Murthy voiced his doubts about India's ability to match China's manufacturing dominance, stressing the need for significant government involvement and improvements in public governance.

He warned against the premature use of terms like "hub" and "global leader." "China has already become the factory of the world. Around 90 per cent of products in supermarkets and home depots globally are made in China. They have six times the GDP of India. It is too audacious of us to say India will become the manufacturing hub," he said.

This comparison highlights the vast gap India must close to compete with China's manufacturing sector.

While the IT sector in India thrives on exports, the manufacturing industry depends heavily on domestic contributions and government support, Murthy explained. "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 noted.

Murthy highlighted that minimising the interface between government and industry is vital for nurturing manufacturing growth.

He said the importance of market assessment and the use of simple mathematical models by entrepreneurs to enhance value. "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," he advised.

Looking to the future, Murthy expressed confidence in the enduring power of human creativity amid the rise of artificial intelligence. "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," he added.