Indian is a developing country and in a developing economy nation Manufacturing sector cannot be left behind, that is which the Indian government’s ‘Make in India’ initiative now intends to boost it such that it warrants a share of 25% in India’s GDP. Investment in the Indian manufacturing sector has seen a surge in both domestic and foreign locations. The investments in fixed assets (Gross Capital Formation) was at USD 405.88 billion during H1 of 2019-20. The sector is also receiving the essential momentum from India scoring a better rank on the ‘ease of doing business index’ and working fiercely towards improving its position in the ‘ease of trading index’. It will not be long before that the growth story in the manufacturing industry will kick in and we shall get close to our global competitors.
Main component behind the growth will be the development of smart factories which shall function on the ‘Internet of Things. Connecting the physical assets and machines through technology and helping them interact with each other without manual intervention will cause heightened efficiency and improved resource management. Digitalization will help the industry produce better quality products, do away with manual inefficiencies, utilize capacity optimally, meet deadlines and create a foolproof environment for growth. Higher local demand and increased FDI will further catalyze the development.
The manufacturer is however pulled back by risks like unavailability of skilled labor, employee retention risks, risk of injury in plants and factories, liability risk, loss of equipment, cyber risks, global unpredictability, risk arising due to technology taking over manual and many more. These risks are necessary to be controlled and mitigated through appropriate insurance policies and expert help is inevitable in this matter.
As India is in the process of emerging into a mega-manufacturing global hub, the manufacturers need a partner that can judge the undercurrents and assess their impact on the organization. EPOCH Brokers with the business principle “ON TIME EVERY TIME” are skillful at doing that which helps us create a perfect risk mitigation strategy for you at most competitive pricing. With us, you can be sure of being secured against risk of a product recall, equipment replacement, employee injuries, fire and other hazards, cyber risks, risks arising due to the global nature of business, changes in reforms, and technical, legal, and financial risks.
