New Delhi
A new Boston Consulting Group (BCG) report highlights that fewer than 40 percent of Indian industrial goods manufacturers use data-driven pricing, leaving vast untapped potential in the country’s $750-billion sector. Contributing about 13 percent to India’s GDP, the segment lags global peers due to heavy reliance on outdated cost-plus or fixed list pricing models.
BCG notes that global leaders increasingly adopt analytics-powered, real-time, and value-based pricing to boost margins and respond swiftly to market shifts. In contrast, pricing in India often remains a back-office task with limited leadership focus. Partner & Director Kiran Pudi emphasized the urgent need for executive ownership and digital tools to transform pricing into a strategic advantage.
Encouragingly, Indian firms are adjusting prices more frequently than in the past, reflecting greater agility. Moving toward AI-driven insights and customer-specific pricing could unlock substantial profitability and competitiveness. Industry experts also expect GST reductions on capital goods and inputs to reduce manufacturing costs, further aiding transition.
The report urges companies to invest in advanced analytics, digital infrastructure, and revamped organizational design to align with global standards. Meanwhile, India’s industrial growth reached 3.5 percent in July, up from 1.5 percent in June, signaling improving momentum in manufacturing.
