CII Report Flags Technology Gaps and Skilled Labor Shortage in Manufacturing

CII Report
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A recent report by the Confederation of Indian Industry (CII) on manufacturing competitiveness has highlighted high implementation costs, limited technology access, and a shortage of skilled labor as major challenges, particularly for Small and Medium Enterprises (SMEs). The study also pointed out gaps in national standards and inadequate testing infrastructure, which impact product quality and consistency across industries.

To address these challenges, the report recommends targeted investments in technology, stronger upskilling initiatives, and greater alignment with international standards. It also emphasizes the need for robust Quality Management Plans (QMPs) to enhance compliance, reduce defects, and improve product consistency.

The study stresses that strong vendor management and a quality-first culture are essential for India to establish itself as a trusted global manufacturing hub. It advocates for continuous improvement, digital tool integration, and proactive quality management as key strategies for enhancing India’s position in global markets.

Quality, according to the report, is a strategic driver for customer trust, brand reputation, and market expansion. It highlights that sectors such as Automotives and Chemicals are leading the adoption of global certifications and quality protocols, while industries like Capital Goods and FMCG are increasingly aligning with international benchmarks to boost exports and revenue growth.

The report underscores the importance of policy clarity and better infrastructure to support manufacturing growth. It calls for simplified regulatory frameworks, better testing and certification facilities, and stronger industry-government collaboration to help manufacturers meet global quality and efficiency standards. As India aims to strengthen its global manufacturing footprint, the CII study emphasizes that technological advancements, workforce development, and quality control will be critical factors in sustaining long-term growth and competitiveness in the sector.

The Confederation of Indian Industry (CII) is a leading non-governmental, not-for-profit industry association that plays a pivotal role in shaping India’s economic and industrial landscape. Founded in 1895, CII works closely with the government, businesses, and international organizations to drive sustainable growth, competitiveness, and policy advocacy across various sectors. With a vast network of over 9,000 direct members and indirect membership of over 300,000 enterprises, CII engages in policy formulation, skill development, technology advancement, and sustainability initiatives. It organizes conferences, trade fairs, and industry summits to foster collaboration and innovation. Through its national and international partnerships, CII actively contributes to India’s global trade and investment ecosystem, supporting economic reforms, entrepreneurship, and inclusive development.