KPMG: 30% productivity rise could power India manufacturing output
KPMG's report says boosting how much each worker gets done is set to power India's manufacturing growth.
If factories can keep productivity up by 30%, that alone could drive nearly 35% of the sector's future output, delivering long-term wins like better profits, higher output, and stronger competitiveness.
Most large Indian manufacturers need changes
KPMG looked at more than 130 large Indian manufacturing companies over 10 years and found that companies improving productivity faster saw profits grow around 10% to 11% a year (versus just 7% for others).
But here's the catch: more than 70% of large manufacturing companies still need major changes to catch up.
Many small or informal units produce less than one-fifth per worker compared with bigger players, so closing this gap is key for India to really shine on the world stage.