At the ELCIA Tech Summit 2024, Infosys co-founder Narayana Murthy expressed skepticism about India’s ability to surpass China as a global manufacturing hub.
Murthy remarked, “We should be cautious with terms like ‘hub’ and ‘global leader.’ China has already established itself as the world’s factory, producing around 90% of the goods found in supermarkets and home depots worldwide. With a GDP six times larger than India’s, it’s overly ambitious to claim that India will become the manufacturing hub.”
He elaborated on India’s manufacturing challenges, emphasizing that while the IT sector thrives on exports, the country has a long road ahead in manufacturing.
To stimulate growth in this sector, Murthy suggested that entrepreneurs must learn to accurately assess the market and identify the potential they can tap into. He also called for improvements in government transparency, accountability, and responsiveness to enhance public governance.
Murthy noted that while India relies heavily on domestic manufacturing with significant government involvement, there is still much progress to be made in achieving global standards of efficiency and excellence.
Online reactions to Murthy’s comments were mixed. One user said, “Narayana Murthy shares an economic formula for India to surpass China, but how much disposable income do Infosys employees really have?” Another user commented, “Those comparing India to China need to understand we’re at $3 trillion GDP while China is at $19 trillion. Murthy is right in urging us to work harder.” A third user questioned, “Is Narayana Murthy working 70 hours?”