Zoho Corporation CEO and cofounder Sridhar Vembu believes India stands at a crucial turning point in its manufacturing journey, with the potential to emerge as a truly global powerhouse. His comments come as India secures a place among the world’s top five manufacturing economies, a milestone that reflects both scale and growing ambition. Yet, Vembu argues that size alone will not determine long-term success.
Responding on X to a post highlighting India’s manufacturing output of $443.91 billion—placing it behind Germany but ahead of many other nations—Vembu urged a deeper examination of what truly drives manufacturing excellence worldwide. According to the data shared in the post, China, the United States, and Japan occupy the top three positions, with Germany ranking fourth.
Vembu drew attention to a striking contrast between India and some of the world’s most successful manufacturing nations. He wrote, “Notice how Japan and Germany are such huge manufacturing powers, with much smaller population than India and with vastly higher labour costs than India or even China.” Expanding on the point, he added, “Switzerland and Netherlands also punch way above their weight in global manufacturing.”
The Zoho chief explained that the secret behind the success of these countries lies not in cheap labour, but in their deep expertise in complex, high-value industrial capabilities. Vembu attributed their dominance to a “mastery of capital goods: such as advanced and high precision machinery.” He noted that these nations have also built strong capabilities in advanced materials, sensors, and highly intricate industrial processes—areas that enable significant value addition and global competitiveness, even when wages are high.
According to Vembu, these strengths allow countries like Japan and Germany to thrive despite labour costs that are far higher than those in India. He also pointed out that China, traditionally known for large-scale, cost-driven manufacturing, has been rapidly catching up in these advanced domains and is steadily transforming into a “high wage nation.”
For India, Vembu believes the lesson is clear. Sustainable manufacturing leadership cannot rely on cost advantages alone. Instead, it must be built on technological depth, precision engineering, and process excellence. Emphasising the broader impact of this shift, he said, “To be a truly great manufacturing nation and achieve high income for our people, India needs to master all these areas.”
Vembu remains optimistic about India’s ability to rise to the challenge. Highlighting the country’s talent base and potential, he added, “We can do it.” His remarks underline a vision where manufacturing growth is closely tied to higher incomes, stronger innovation, and long-term economic resilience.
At its core, Vembu’s analysis reinforces a powerful idea: enduring manufacturing success comes from value creation driven by technology and expertise, not merely from low labour costs. As India looks to strengthen its global manufacturing position, his message serves as both a roadmap and a call to action.
