India's Industry Set for Transformation Amid AI-Driven Structural Changes, Warns EY Expert Rajiv Memani

EY India Chairman and CEO Warns of Key Challenges for Indian Industry

Rajiv Memani, Chairman and CEO of EY India, highlighted several key challenges facing the Indian industry during the News18 Rising Bharat Summit. He emphasized the need for the corporate sector to prioritize innovation to remain competitive globally.

Low R&D Spending and Uneven Manufacturing Growth Indian industry is facing challenges in terms of R&D spending, which is lagging behind the country's rapid capital market growth. This gap highlights the need for Indian companies to focus on research and innovation to build a competitive advantage. Additionally, uneven manufacturing growth has hindered Indian firms from fully capitalizing on opportunities.

Artificial Intelligence and Structural Shifts The adoption of artificial intelligence (AI) is expected to significantly impact the industry, leading to a sharp divide between winners and losers. EY India estimates that companies in the services sector and manufacturing will undergo significant changes. While some companies will struggle to adapt, others will double down and succeed.

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Long-Term Prospects Despite current challenges, EY India remains optimistic about the long-term prospects for Indian industry. The opportunity for companies to scale up in India over the next 5-10 years is substantial, driven by the growth of large-scale companies.

Key Statistics

• R&D spending gap between Indian industry and capital market growth
• Opportunity for companies to scale up in India over the next 5-10 years