YASMIN TAJ

T
here can be no second
thoughts about the fact
that engineering is the
backbone of any nation's
economy. The engineering sector
is one of the largest sectors
among the industrial segments in
India. If there were no engineers,
the discoveries done by scientists
in natural science would not be
translated into practical devices
used in daily life. In every field of
life, whether it is in the field of
medical sciences,
communications, defence,
infrastructure, etc., there is an
engineer in the background.
According to Deloitte's global
index 2013 for 38 nations, India is
the fourth most competitive
manufacturing nation behind
China, the US, and Germany, and
is anticipated to become the
second largest economy in
manufacturing by 2017. A report
by McKinsey and Company
believes that India's
manufacturing sector has the
potential to create up to 90
million jobs by 2025 (the sector
currently generates about 45
million jobs, 80 per cent of which
are in the unorganised segment).
ON THE GROWTH
TRAJECTORY
Talking about how the
engineering sector is faring at the
moment, Paparao Kodali, vice
president and general manager,
Ingersoll Rand Engineering &
Technology Centres, India
informs, "It is a positive sign that
we are largely moving toward
high-end engineering and
manufacturing with the
Government announcing multiple
reforms and policies in these
sectors. Unlike the past, where
these sectors were driven by low-
cost labour, inadequate land laws
and reasonable cost of capital,
India is fast moving up the value
chain and is increasingly adopting
global standards in manpower
training, technologies used,
processes adopted and overall
quality of goods and services
produced.
India is also fast emerging as a
major destination for high-end
engineering, research and
development (R&D), and
product/service/process
innovation for most companies
across the globe. With a footprint
of about 750 captive engineering
and technology centres of major
multi-national companies (MNCs)
of which close to 350 are focused
on R&D, India is fast developing
key competencies essential for
future growth. The value of India's
engineering R&D sector is
estimated to be around US$ 10
billion currently and forecast to
reach US$ 45 billion by 2020
according to an estimate by the
National Association of Software
and Services Companies
(NASSCOM)."
According to Rajiv Kapur,
managing director, Broadcom,
"Engineering continues to
expand and innovate. In the 60s
and 70s, it was civil and chemical
engineers who were much in
demand. In the 80s and 90s
came the exploding demand for
electronics and
computer/software engineers. At
a micro level, some areas may
decline or be stable, and others
are growing fast. For instance,
first PCs drove the explosive
growth, and then came network
equipment followed by mobile
and consumer electronic
devices." Sushil Gupta, vice
president and managing director,
Atrenta India Pvt. Ltd., further
says, "Under the engineering
sector, the semiconductor and
electronic design automation
(EDA) industries play an
important role in today's
computer and Internet-
dominated world. In India, most
of the major semiconductor and
EDA vendors have large R&D
operations in India. These teams
are involved in developing and
supporting the modern-day chips
used in computers, smart phones,
tablets, TVs, cars, medical
equipment, etc. Most of these
companies are growing their
workforce in India at a very rapid
pace."
ROADBLOCKS ON THE WAY
The engineering sector has been
on a growth mode even in the
most difficult times. But there are
certain challenges the industry
faces and needs to overcome.
Kodali expresses, "The key
challenges faced by these
industries include increased
global competition, availability of
skilled workforce and access to
uninterrupted energy supplies
and developed public
infrastructure. To overcome these
challenges, the engineering sector
must have continued focus
toward innovation, operational
excellence, productivity
improvements and talent
development."
According to S Ramesh
Shankar, Executive VP and Cluster
HR Head, Siemens Ltd, "The
macro-economic conditions have
been challenging and the
engineering and manufacturing
sector has also been impacted by
the sustained difficult business
environment. It is a matter of time
for the turnaround to occur. The
economy will gain impetus if
stalled and delayed infrastructure
projects take off, interest rates
ease, and consumption of
manufactured goods increases."
Indian engineering sector
demands huge capital investment
and regulation of policies by
regulatory bodies to maximise the
profit, asserts Faisal Husain,
founder & CEO, Synechron. "The
evolving trends at the economic
and technological front demand a
lot of changes to suit the needs of
engineering environment.
Reducing the dependence on one
segment of engineering sector,
enhanced production capabilities,
flexible regulations and increased
investment in this sector will
enable it to overcome all possible
challenges," he says.
A BRIGHT FUTURE AHEAD
The Indian engineering industry
has witnessed an unprecedented
growth in the past few years and
it plays a significant role in the
development of other industrial
sectors of the economy. So, what
will the future of this revolutionary
industry be like? "With a rapidly
growing middle class and millions
of underserved customers, these
industries offer significant
opportunities for growth. Fuelled
by innovation, growing
entrepreneurial culture and
availability of skilled workforce,
these industries have the
potential to bring about sustained
development and progress in all
walks of life. To realise this
potential, it will be imperative for
organisations to invest in Public
Private Partnerships and converge
their energies towards making an
effort to revive the industry," states
Kodali.
Kapur further adds, "The future
looks healthy with promising
opportunities and there is always
a new emerging space that brings
reason for growth and
excitement. There are lots of
innovations happening across
multiple spheres such as
transportation, education, retail
that will potentially change the
way we live, eat, shop and interact
with each other."
So, even though times may be
challenging for the economy, the
engineering industry of India is
certainly steering the nation
towards better times ahead!
A CONSUMER CONNECT INITIATIVE
ADVERTORIAL & PROMOTIONAL FEATURE
The revolution called
Powerful forces,
including
demographics,
globalisation, and
rapidly evolving
technologies are
driving profound
changes in the role of
engineering in
society. Heres a look
at this evolving sector
ENGINEERING
Engineers Day is
celebrated on
September 15 to mark
the birth anniversary of
Sir M Vishweshwaraiah
Celebrating a legend
>>
pg 15
THE ECONOMIC TIMES, MUMBAI, FRIDAY, SEPTEMBER 13, 2013