Free Essay

5 Ways of Improving Competitiveness of Indian Industry

In: Business and Management

Submitted By mrasd1411
Words 644
Pages 3
5 ways of improving competitiveness of Indian industry

1. Innovation - Research and development

R & D expenditures in India are inadequate. India as a whole spends only 0.85 % GDP on research and development. Focus should be on development of indigenous technology, efficiency and adaptation of imported technologies. Also government has to come up with industrial and trade policies which will promote research and development. The industries should make alliances with educational systems for providing solutions to practical problems face by them. The alliances in business and education should focus on identifying creative, flexible partnership models between governments, industry, and the academic community. Industries should also provide necessary funding and infrastructure to set up laboratory in educational institutes. They should promote students for doing extensive R & D and acquiring patents. The renewable energy and sustainable resources track highlighted opportunities in the renewable and alternative energy sector that are keys to creating greater energy security and economic competitiveness.

2. Information Technology (IT) systems

Information technology (IT) is playing & will play a crucial role in Indian industries. It has transformed the whole world into a global village with a global economy, which is increasingly dependant on the creative management and distribution of information. IT provides the communication and analytical power that industries need for conducting trade and managing business at global level with much ease. IT will help industries to coordinate their worldwide network of suppliers, distributors and consumers. It will also help to develop global information systems that can track orders, deliveries, and payments round the clock.
Industries should gain the benefits of Information Technology (IT) systems that comprise the engineering to manufacturing continuum - systems essential to compete successfully in a demand driven environment. Strategic and tactical solutions to the many problems in this continuum require several integrated IT systems. Among them is product lifecycle management (PLM), product configuration, enterprise resource planning (ERP) and supporting IT infrastructure.
3. Improving quality, reducing cost and shortening lead-times

Quality often cannot be improved without major changes in Production processes. In discrete part manufacturing, the use of some key ideas from the Toyota Production System, which in turn require changes in layouts, process improvements and so on, will help industries to improve quality. Industries should give an exclusive focus on quality tools like SQC and SPC, or on programs like TQM and TPM (Total productive maintenance). Quality is largely a function of design. Without attention to product design, it is unlikely that improvement can be sustained. Quality products and services delivered by the industries will help them to provide products and services at reduced cost and at shorter lead time.
4. Demand based strategies

Many of the industries have not yet been able to tightly control inventories across the supply chain. They still appear to be using inventories to meet demand rather than developing quick response manufacturing to meet changes in market needs. The relationship between batch sizes, WIP and lead times is very close. Increase in batch sizes leads to higher WIP and longer lead-times. The key is to perform process analysis, de-bottleneck, reduce setup times and synchronize order release with throughput rates. In short, manufacturing has to become process oriented and keeping in mind the customer requirements. The pull system should be followed by industries considering customer requirement rather that push system where products are pushed in the market. Thus in short industries should follow demand base strategies.
5. Corporate governance
Through its impact on corporate competitiveness and access to global capital markets, corporate governance will play an increasingly important role for entrepreneurship, economic growth and employment. While corporate governance should remain primarily a private sector prerogative, governments have a distinct and important responsibility in providing a regulatory framework that allows investors and enterprises to adapt corporate governance practices to rapidly changing circumstances. It should encouraged credible regulations emphasizing fairness, transparency, accountability and responsibility.…...

Similar Documents

Premium Essay

Indian Retail Industry

...at 15% per annum. Organized retail accounts for just 5% of total retail sales and has been growing at 35% CAGR. Though the journey has so far been rather mixed, organized retail is being tipped as one of the biggest gainers from growing consumerism and rising income. India’s robust macro and microeconomic fundamentals, such as robust GDP growth, higher incomes, increasing personal consumption, favourable demographics and supportive government policies, will accelerate the growth of the retail sector. 1) Learning from the Past: During2005-2007, the sector was in a hyper growth phase. In pursuit to capture market, companies made strategic as well as operational errors which has been broadly classified as follows: I .Race for increasing retail space resulting in haphazard growth ii. Unviable formats iii. High lease rentals iv. Manpower costs and productivity issues v. Poor back end infra structure vi. Entry of too many new players 2) Consolidation:Duringtheglobalslowdownphaseof2007-2009,theIndianretailplayerspausedtorealizetheirpastmistakesandtooktimeandefforttore-organizethemselves:i.Focusonprofitablegrowth * Exit from unprofitable stores/formats * Rental renegotiation/revenue sharing arrangements * Reduction in salaries/higher manpower productivity * Significant investments in backend * Exit o fun successful new entrants Industry also witnessed failures like Subhiksha and Vishal......

Words: 3256 - Pages: 14

Premium Essay

Indian Airline Industry

...Airline industry Indian Airline Industry Management Economics P a ge |1 Airline industry A Project report on INDIAN AIRLINE INDUSTRY Submitted on 13Oct2012 in partial fulfillment for the requirement of the subject "Managerial Economics” during academic course of PGDM-Executive 2012-13. Submitted by Abhas Desai(06) Bharat Dalvi (05) Nitin Palve (19) Prasad Babu (10) Arjun Singh (04) Ravi Sastry (22) Vivek Misra (16) Guide: Prof. J Bhargavi K.J.Somaiya Institute of Management studies and research Mumbai Management Economics P a ge |2 Airline industry Industry Outlook: Global Positioning Airlines Industry analysis : Management Economics P a ge |3 Airline industry • • • • Economic growth environment is weak Industry profitability not perfectly but closely correlated High fuel price no problem when growth is strong But growth now close to point where profit turns to loss Management Economics P a ge |4 Airline industry • • • • Price of jet fuel persistently high In 2008 spiked higher but just 7 months Jet fuel price >$120/b for past 15 months Even after recent fall still higher than early 2011   Given difficult environment cash flow performance to date good at around 10% of revenues, except Europe (1/2 that) Financial market signal more or less consistent with change in cash flows since 2009 Management Economics P a ge |5 Airline industry • • • Demand for air travel expanding well above trend...

Words: 2277 - Pages: 10

Premium Essay

Indian Hotel Industry

........................ 5 Country Trends................................................................................................................................... 7 In The Focus......................................................................................................................................... 8 City Trends........................................................................................................................................... 12 Indian Hospitality – In Sync with Nature....................................................................................... 19 1. 2. 3. 4. Indian Hotel Industry – by Star Category............................................................................................... 22 Indian Hotel Industry – Inventory and Chain Affiliation................................................................... 31 Indian Hotel Industry – Seven Major Cities.......................................................................................... 39 Indian Hotel Industry – Twelve Other Cities......................................................................................... 50 Hotel Analysis Worksheet................................................................................................................................ 61 Foreword The Federation of Hotel & Restaurant Associations of India is pleased to present the thirteenth annual edition of the Indian Hotel Industry Survey, in cooperation...

Words: 38410 - Pages: 154

Premium Essay

Indian Hotel Industry

...INDIAN HOTELS INDUSTRY Consumer confidence low; revival contingent on global environment QUARTERLY REVIEW March 2012 ICRA expects the Indian Hotels industry to finish 2011-12 on a weaker note with subdued pricing power eroding margins. Although some revival in operational metrics was witnessed during late 2010-11, the industry continued to lack the pricing power to drive out of its current stagnancy. Globally weak macroeconomic scenario, the European sovereign debt crisis, geo-political turmoil in the Arab countries, high interest rates, inflation and a muted domestic corporate performance during the current fiscal (year to March 31, 2012) have sapped the industry’s ability to sustain inflation adjusted Average Room Realizations (ARRs). Muted ARRs and high costs have led to one of the weakest nine month (9M) periods (April-December-11) in over five years. With uncertainty continuing to cloud the near term, wavering business/consumer confidence and a sluggish economy, there is no significant trigger for the industry during the next two-three quarters. While the start of the next season (in Q3, 2012-13) may bring some relief to the industry in some specific markets, we expect real traction to return to the industry only by 2013-14; overall, we expect this to be a slow and long slog to recovery. We expect ARR growth during the current fiscal to be limited to around 5%, followed by around 5-8% during 2012-13. In the current inflationary environment, RevPAR growth of around 6-7%...

Words: 10834 - Pages: 44

Premium Essay

Indian Aviation Industry

...CONFIDENTIAL EXPERT REPORT Research Study of the Civil Aviation Sector in India SUBMITTED TO: The Ministry of Corporate Affairs, Govt. of India, India SUBMITTED BY: Nathan Economic Consulting India Pvt. Ltd., India www.nathaninc.com January 24, 2012 CONFIDENTIAL Table of contents 1. 2. 3. 4. 5. Executive Summary ................................................................................................................................. 1 Introduction .............................................................................................................................................. 7 Market Structure and Competition Issues ......................................................................................... 11 Identification of Anti-Competitive Provisions and Practices ......................................................... 15 Analysis of the Identified Issues .......................................................................................................... 24 5.1 Fleet and Equity Requirements ................................................................................................................... 24 5.2 Route Dispersal Guidelines......................................................................................................................... 29 5.3 Slot Allocation ..............................................................................................................................................

Words: 21810 - Pages: 88

Premium Essay

Indian Hotel Industry Research Report

...INDIAN HOTEL INDUSTRY RESEARCH REPORT 2013 Submitted by: 1) Arindam Bagh 2) Arindam Das 3) Pavan Kumar Submitted by: 4) Arindam Bagh 5) Arindam Das 6) Pavan Kumar Table of Contents 1. Executive Summary 5 2. Industry Overview 6 2.1. Key Components of Hospitality Industry 6 2.2. Global overview 6 2.3. Indian overview 7 2.4. Market Structure 10 2.5. Industry metrics 12 3. Challenges faced in the Sector 14 3.1. Global economic uncertainty 14 3.2. Seasonality of demand 14 3.3. Oversupply 15 3.4. High Employee turnover 15 3.5. Lack of MICE related Infrastructure 16 3.6. Inadequate supply of quality talent 16 3.7. Low security 17 3.8. High cost of developing property 17 3.9. Poor Infrastructure 18 3.10. Difficult project financing 18 4. Growth Drivers 18 4.1. International tourist arrivals 18 4.2. MICE Destination (Meetings, Incentives, Conferencing, Exhibitions) 19 4.3. Government spending to boost growth 19 4.4. Improving economic environment 20 4.5. Increasing spending power 21 4.6. Government Support (Non-Monetory) 21 4.7. Offers from Airline Industry 24 5. Emerging Trends in the sector 25 5.1. Premium Hotel’s profitability to hit lows 25 5.2. Increasing revenues from F&B Segment 26 5.3. Development of niche tourism offerings 26 5.4. Growing trend towards service apartments 27 5.5. Growing demand for budget segment 27 5.6. Increasing interest of international......

Words: 10495 - Pages: 42

Premium Essay

Indian Automobile Industry

...ANALYSIS OF THE INDIAN AUTOMOBILE INDUSTRY SUBMITTED BY : ANIKET SHARMA ROLL NO. 45 PG-C INTRODUCTION The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. India is emerging as an export hub for sports utility vehicles (SUVs). The global automobile majors are looking to leverage India's cost-competitive manufacturing practices and are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia. India can emerge as a supply hub to feed the world demand for SUVs. India also has the largest base to export compact cars to Europe. Moreover, hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focussing their efforts to develop innovative products, technologies and supply chains. The automotive plants of global automakers in India rank among the top across the world in terms of their productivity and quality. Top auto multinational companies (MNCs) like Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their global pecking order. MAJOR DEVELOPMENTS & INVESTMENTS * Yamaha Motor Co (YMC) has announced to set up its fifth global research......

Words: 3077 - Pages: 13

Free Essay

Ways of Improving Efficiency of Enterprise

...Introduction The theme of this course paper is “Ways of improving efficiency of enterprise”. It is considered to be topical nowadays because of some reasons. Firstly, today’s period of economic development is characterized by high competition in the market which makes all businesses seek foe different ways of increasing their efficiency. Enterprises are forced to look for the steps which help them work effectively without wasting time, money or energy. The pace of business activity is getting faster and faster. Employees often have to work under pressure dealing with performing lots of task at the same time and under different circumstances. It result in the fact that employers have to provide their employees with the possibility to work in the hotel rooms, airport, lounges, remote branches etc. Secondly, at the present moment mankind is facing with the problem of exhaustion of mineral and natural resources which makes numerous plants, factories and enterprises be more economical in the use of the resources. They need to organize their production in the way which lets them produce a specific outcome effectively produce a specific outcome effectively with a minimum amount of waste, expense and unnecessary effort. A lot of scientists and businessman have raised the problem of efficiency in their articles and books. In particular, outstanding Italian sociologist, economist and philosopher F. Parreto made a great contribution into the study of the problem of efficiency.......

Words: 9065 - Pages: 37

Premium Essay

Indian Automobile Industry

... CHAPTER 1 INTRODUCTION INTRODUCTION The automobile industry is one of the largest industries in India as in many other countries. It plays a major role in the growth of economy in India. The automobile industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. The industry comprises automobiles and auto component sectors, which encompass passenger cars, two-wheelers, three-wheelers, tractors, commercial vehicles, multi- utility vehicles and components. Today, the Indian automobile industry is the world s largest motorcycle manufacturer, the second largest two-wheeler and tractor manufacturer, the fifth largest commercial vehicle manufacturer and the fourth largest car maker in Asia. Apart from serving the domestic market, the Indian auto sector has also become a sourcing hub for the global auto giants. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The Government of India has introduced an ambitious project of setting up world-class automotive testing and R&D infrastructure to place India in the USD 6 trillion global automotive business. This book details the current status and factors influencing the growth of the Indian automobile industry; its future prospects and the success stories of some automobile giants in India. It also focuses on the future growth of the industry as a result of the newly adopted technologies and strategies. India......

Words: 14693 - Pages: 59

Premium Essay

Indian Bicycle Industry

...infrastructure in cities, introducing cycle-sharing schemes and promoting awareness campaigns ............................................................................................................................29 CHAPTER 3: Promoting growth and competitiveness of Indian bicycle industry ..............37 Bicycle industry in India .............................................................................................................................. 37 Structure of bicycle industry in India ...................................................................................................38 Industry trend analysis ................................................................................................................................38 Production capacity ..............................................................................................................................38 Contents Bicycle sales ...........................................................................................................................................39 Exports and imports.............................................................................................................................40 Key issues facing the bicycle industry ........................................................................................................42 Technology gaps......

Words: 8816 - Pages: 36

Free Essay

Indian Aviation Industry

...0 Strategic Management Indian Aviation Industry Group 1 Section B Strategic Management 1 Program & Batch PGDM 2014-16 Term IV Course name SM Name of the faculty Shalini R. Tiwari Topic/Title Indian Aviation Industry- A Strategic Perspective Original or Revised write-up Original Group Number 1 Contact no. or Email Id of Group Coordinator +91 8130083855 ft14mayankshekhar@imt.ac.in Group Members Sr. no. 1 Roll no. Name Vicky Roy 140102140 2 Nitish Nihal 140103119 3 Ankush Bansal 140103024 4 Mayank Shekhar 140101098 5 Priyanka Thaman 140102135 6 Deepak Jhunjhunwala 140102041 2 Contents Executive Summary……………………………………………………. 3 Indian Civil Aviation Sector- Chronology of events…….. 4 FDI Regulations………………………………………………………….. 6 Growing Low Cost Carrier Market share……………………. 6 Air Turbine Fuel Price trends……………………………………… 7 Rupee depreciation…………………………………………………… 7 LCC Strategies…………………………………………………………… 7 Financial Analysis……………………………………………………… 8 Current Transformation……………………………………………. 9 Industry Estimations…………………………………………………. 11 The Indian Advantage- The Four Big Prospects…………. 13 Evolution of the Indian Aviation Sector…………………….. 15 Strategic Grouping of Six Major Airlines……………………. 16 Six Major airports……………………………………………………… 16 Passenger traffic……………………………………………………….. 17 Freight traffic…………………………………………………………….. 18 Aircraft movement…………………………………………………….. 19 Private Sector......

Words: 3917 - Pages: 16

Premium Essay

Indian Motorcycle Industry Overview

...INDIAN TWO-WHEELER INDUSTRY Industry volume growth expected to gear down to 8-9% in 2012-13 ICRA RATING FEATURE MAY 2012 Overview The Indian two-wheeler (2W) industry recorded sales volumes of 13.4 million units in 2011-121, a growth of 14.0% over the previous year. In a year wherein growth in other automobile segments particularly, passenger vehicle (PV) and medium & heavy commercial vehicle (M&HCV), slowed down to single digits - marred by demand slowdown due to northward movement of inflation, fuel prices and interest rates - the 14% growth recorded by the 2W industry remained steady. However, the momentum in the 2W industry’s volume growth too has been losing steam lately as evident from the relatively lower volume growth of 11.0% recorded in H2, 2011-12 (YoY) against a growth of 17.1% recorded in H1, 2011-12 (YoY). The deceleration in growth is largely attributable to the motorcycles segment which grew at a much lower rate of 7.8% (YoY) in H2, 2011-12 vis-à-vis 16.4% in H1, 2011-12; even as the scooters segment continued to post 20%+ (YoY) expansion during both halves of the last fiscal. With this, the share of the scooters segment in the domestic 2W industry volumes increased to 19.1% in 2011-12 from 17.6% in 2010-11. Overall, ICRA expects the domestic 2W industry to report a volume growth of 8-9% in 2012-13 as base effect catches up with the industry that has demonstrated a strong volume expansion over the last three years at cumulative annual growth......

Words: 10995 - Pages: 44

Premium Essay

Indian Logistic Industry

...INDIAN LOGISTICS INDUSTRY 2009 PROJECT REPORT ON INDIAN LOGISTICS INDUSTRY FOR PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED TO: Ms. Gunjeet Kaur Lect. of SVSM SUBMITTED BY: Rajnish Kumar Roll No. SVPG/07/05 PGDM – 6th Trimester SWAMI VIVEKANAND SCHOOL OF MANAGEMENT Ramnagar (near Banur), Patiala 1 | Page SVSM RAJNISH THAKUR (PGDM) INTERNATIONAL BUSINESS & MARKETING INDIAN LOGISTICS INDUSTRY 2009 Punjab LOGISTICS MANAGEMENT - INTRODUCTION Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective, forward and backward (reverse) flow and storage of goods, services and information between the point of origin and the point of consumption in order to meet customers' requirements rather to the customers’ delight. A professional working in the field of logistics management is called a logistician. Logistics, as a business concept, evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials, and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and to the right target customers (consumer); and it is the science of process having its presence in all sectors of the industry. The goal of logistics work is to manage...

Words: 20387 - Pages: 82

Free Essay

Indian Auto Industry

...INDIAN AUTO INDUSTRY …. the way forward Presentation bySunil Kakkar General Manager (SupplyChain) Maruti Suzuki India Ltd Indian auto industry : Among the top 10 in world Two Wheelers Small Cars Commercial Vehicles 2nd 3rd 5th Automobile Industry – A Global Hub • • • • • 15 manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers of commercial vehicles, 16 manufacturers two/ three wheelers, 14 manufacturers tractors, 5 manufacturers of engines. Key drivers for the growth of Indian Auto industry Finance Availability Poor public transport system Improved Infrastructure Low car penetration Key drivers Rising Family Income Exchange of Cars Favorable duty structure Changing lifestyle Impact of infrastructure 2 key projects of strategic importance for India NHDP project: • Largest highway development project • Golden quadrilateral - Connects 4 metros • NSEW project – Connecting North, South & East, West lengths of India Rapid Urbanization Urban Percentage of Total Population Rising GDP per Capita Per Capita GDP (US $) 2010 2011 2012 2013 2014 2015 Accelerated overall growth of other industrial segments …..a key enabler to fuel auto demand Indian Pockets growing Deeper Annual Income (INR) Number of Households in 2010(million) Expected Households in 2015 (million) More......

Words: 814 - Pages: 4

Free Essay

Indian Food Processing Industry

...Marketing of Processed Food [Type the document subtitle] 9/1/2012 Sakshi Sethi Roll no. 53 INDIAN PROCESSED FOOD INDUSTRY The food processing Industry in India is of fundamental importance, holding as it does the vital link between agriculture and industry. This industry provides nearly 60 percent of all job opportunities by directly employing around 1.6 million workers. It is the fifth largest industry in the country in terms of production, consumption, export and growth. The worth of the Indian processed foods sector stood at USD 157 billion in FY2012; it is expected to touch USD 255 billion by FY2016 with 13 percent growth rate per annum. The availability of raw materials, changing lifestyles and relaxation in regulatory policies is fuelling the growth of this industry. India is the highest producer of milk in the world at 90 million tonnes per annum and the third largest producer of fish. With an arable landmass of 184 million hectares, it is the second largest producer of fruits & vegetables and the third largest producer of food grains. It has the largest livestock population as well. In addition to its large and wide-ranging raw material base, India has a huge consumer base of over one billion people. All these are positive factors that add vigour to the processed foods industry, which holds tremendous opportunities for large investments. With enormous scope for value addition, increase in the consumption of processed food products in India and many......

Words: 2141 - Pages: 9