Rise in quality awareness among manufacturers: CII

NEW DELHI: Indian manufacturers are witnessing a rise in quality awareness, with the automotive and chemicals sectors leading the adoption of global certifications and quality protocols, according to a study by the Confederation of Indian Industry (CII).

Other sectors, including capital goods and fast-moving consumer goods (FMCG), are also aligning with international benchmarks to boost exports and revenue growth, said the CII Manufacturing Competitiveness Study titled 'Raising the Standard: Quality Transformation of Indian Manufacturing'.

"Quality represents much more than product reliability or customer satisfaction; it is a strategic differentiator that has the power to shape India's competitive positioning worldwide," said Chandrajit Banerjee, director general, CII.


The study pointed to the increasing emphasis on meeting global standards and regulations in sectors such as automobiles and chemicals, along with growing quality awareness in these sectors.

Further, the shift towards quality culture has proliferated the adoption of certifications and quality protocols across sectors from capital goods to FMCG, it said.

However, the study also said there are challenges such as technological adoption, availability of skilled labour and supplier quality management plaguing Indian manufacturers as they chart a path for manufacturing high-quality products.

It also focused on the widespread concern over quality defects with vendor-supplied materials, which hurts smaller companies more due to their limited bargaining power and weaker supply chain controls.

"Small and micro enterprises (SMEs), in particular, often lack the resources to invest in modern machinery or to integrate digital tools into their operations. Budget constraints and outdated standards further limit the capacity of smaller firms to maintain quality consistently," said the study.

It recommended establishing a "national quality skilling initiative" to equip workers with quality-specific skills in precision control, quality management systems and compliance with international standards.

For SMEs, it suggested launching a "standards outreach and capacity-building" initiative to update them on existing standards and help them integrate these standards into their processes.

To encourage partnerships between domestic firms and global quality leaders for knowledge and technology transfer, the study proposed offering incentives, such as reduced import duties, for joint ventures that involve quality-related technology or practices transfer.