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November 09, 2006

Top sectors in Indian manufacturing

Business Today has a detailed and well researched feature on top performing sectors within the Indian manufacturing industry.
There are a handful of industries in India that have begun to become globally competitive because a) they have honed their process skills to a great extent, b) have the advantage of being vertically integrated, or c) have been able to tap into the global supply chain of large customers. One test of global competitiveness is the ability to withstand foreign competition in home markets. Another, the bigger test, is the ability to compete with a multitude of suppliers in international markets and win. Apply the second test, and the number of industries that can be considered globally competitive shrinks-to, by expert consensus, five. Which are these? In alphabetical order, auto components, electricals and electronics, pharmaceuticals, textiles, and specialty chemicals.

Arun Natarajan is the Founder of Venture Intelligence, which tracks private equity and venture capital in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.