Sridhar Vembu: Mastering Capital Goods Is Key to Making India a Global Manufacturing Power

Zoho founder and chief scientist Sridhar Vembu said India can become a “truly great manufacturing nation” if it masters capital goods and highly complex industrial processes. He pointed out that countries with smaller populations and much higher labour costs have succeeded in manufacturing because of their deep expertise in advanced machinery, materials, and precision-driven production systems.

Vembu explained that leading manufacturing nations excel in areas such as high-precision machines, sensors, advanced materials, and intricate processes like producing specialty alloys, crystals, chemicals, and optical or medical equipment. These segments offer high value addition, allowing countries to remain competitive even with high wages. He noted that China’s progress in these areas has also pushed it toward becoming a high-wage economy.

Echoing a broader economic view, economist Sanjeev Sanyal recently said India must expand both manufacturing and services to ensure long-term growth and resilience. Meanwhile, recent PMI data showed a slight slowdown in manufacturing and services growth in December, with employment levels dipping to their lowest since early 2024, suggesting companies currently have enough workforce to meet demand.

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