Chandra calls for shift from assembly-led growth

"It is very important to build the assembly-led growth, and that is going to lead to creating a strong SME segment. From there, moving to end-to-end full product, and building a range of capabilities is going to require investments into R&D, creation of intellectual property and being in tune with the market," Chandrasekaran said at the Indian Foundation for Quality Management (IFQM) Symposium 2026.

He said quality should not be viewed merely as a means of ensuring product standards but as a driver of innovation, productivity and competitiveness. Citing Toyota, he said the Japanese automaker had used quality as a key driver of innovation and competitive advantage, while Germany had built national competitiveness around engineering, standards, precision and a strong supplier ecosystem.

"In India, we need such a transformation," he said, adding that sustainable manufacturing also needed to be embedded in the country's manufacturing ambition.

Chandrasekaran said the next phase of manufacturing would require capabilities spanning not only products but also the equipment needed to make them, along with the right skills and vocational training. Such a transition, he said, would help build a stronger SME and supplier ecosystem and create expertise that could eventually help shape global manufacturing standards.

He said the economy remained robust despite a difficult global environment, with strong domestic demand, services exports and an enabling policy environment supporting growth. High-frequency indicators such as auto sales, credit growth, power and cement demand were showing double-digit growth, he said.

The current account deficit remaining consistently below 1% of GDP, strong services exports and foreign exchange reserves, and low bank non-performing assets were among the indicators showing that the economy was in a stable and strong place, he said.

However, sustaining growth over a longer period would require greater attention to energy security, advanced and precision manufacturing jobs and human capital. "Energy security must be ensured because that is going to be fundamental for growth," he said, adding that the economy needed to shift workers from low-productivity agriculture to higher-productivity manufacturing and modern services.

Chandrasekaran said the Viksit Bharat 2047 vision would require inclusive and sustainable development supported by world-class infrastructure, institutions and intellectual property. The vision had already percolated across multiple disciplines but executing it would require these capabilities to be built across the economy, he said.