China has six times GDP of India’: Narayana Murthy says ‘
India’s aspiration to elbow China out and become a global manufacturing hub faces significant challenges, according to NR Narayana Murthy, co-founder of Infosys. Speaking at the ‘ELCIA Tech Summit 2024,’ Murthy expressed skepticism about India’s ability to compete with China’s manufacturing prowess, adding that government involvement and public governance improvements are crucial for India to make any substantial progress in this sector.

Murthy cautioned against using grandiose terms like “hub” and “global leader” prematurely. “China has already become the factory of the world. Around 90% of things in supermarkets and home depots in other countries are manufactured in China. They have six times the GDP of India. It is too audacious of us to say India will become the manufacturing hub,” he stated. This stark comparison underscores the significant gap India needs to bridge to rival China’s manufacturing capabilities.

The Infosys co-founder explained that while the IT sector thrives on exports, the manufacturing industry heavily relies on domestic contributions and government support. “For manufacturing, by and large, the domestic contribution is more, and the government plays a big role in the success of manufacturing. Unfortunately, the response time, transparency, accountability, speed, and excellence in public governance in a country like India still need to improve,” Murthy said. He emphasized that reducing the interface between government and industry is essential for fostering manufacturing growth.”