As Prime Minister Modi aims to turn manufacturing into a main growth contributor of India's economy, new production models are necessary, warns one of the country's largest conglomerates.
"When you want to build a consumer product, test markets and mitigate risks, it makes sense to be very proximate to your ultimate market," said Anand Mahindra, chairman of the Mahindra Group, a multinational with a wide range of businesses, spanning from aerospace, finance, and defense. Its automobile arm—Mahindra & Mahindra—is currently one of the largest tractor manufacturers in the world.
"Digital technology and things like 3D printing are enabling even more localized manufacturing. I want to make sure that India is ready for that future," the 60-year old tycoon told CNBC.
The idea of peer-to-peer resources resulting in more personalized production harmonizes well with the holistic economic principles of Mahatma Gandhi, India's founding father, where every village becomes a self-supporting and self-contained unit, Mahindra explained.