The Indian manufacturing sector is currently experiencing advantages similar to those that the IT services industry enjoyed in the past, positioning India as a hub for Industry 4.0, according to B Santhanam, CEO of Saint-Gobain for the Asia-Pacific and India regions.
In a recent discussion at the Mystic South Global Linkages Summit 2025 held in Chennai, Santhanam pointed out that there is a significant opportunity for “talent cost arbitrage” in Industry 4.0, akin to what the IT sector experienced previously. He noted that factories in North America and Europe are struggling to find skilled talent domestically, while South India has an abundant skilled workforce ready to meet global engineering, research and development, and Industry 4.0 needs.
He highlighted the potential for global factories to be effectively managed from Chennai, akin to establishing a business services division for manufacturing operations. Santhanam emphasized that for India to achieve a fivefold economic growth in the next 23 years, the South of India must accelerate its development, primarily led by manufacturing and construction sectors. For India to reach a $20 trillion economy by 2047, he believes that the South needs to contribute around $6-7 trillion, with over one-third stemming from manufacturing and construction.
Vir S Advani, Chairman and Managing Director of Blue Star India, echoed Santhanam’s sentiments, stressing the importance of investing in advanced technologies to compete on a global scale and to meet the quality standards set by Western markets. He pointed out that technologies such as the Internet of Things (IoT) and comprehensive traceability of components are crucial for scaling operations internationally and capturing market share from global competitors.
Advani also highlighted the necessity of enhancing the productivity of both blue-collar and managerial workforce in India. He acknowledged the expected growth in the labor force but emphasized the importance of simultaneously improving productivity to align with other advanced manufacturing nations.
Both leaders called on the southern states of India to promote their inherent strengths as sustainable manufacturing destinations. Santhanam asserted that regions like Tamil Nadu and Karnataka are prime locations for global companies seeking sustainable manufacturing practices today.
