Could Data-Driven Pricing Unlock the Vast Potential of India’s $750 Billion Industrial Goods Sector?
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Synopsis
Unlocking the potential of India's $750 billion industrial goods sector is crucial, particularly with less than 40% of companies adopting data-driven pricing strategies. This report reveals opportunities for growth and innovation through advanced analytics. Discover how organizations can leverage data to enhance competitive advantage and drive economic growth.
Key Takeaways
- Less than 40 percent of Indian firms utilize data-driven pricing.
- Transitioning to advanced analytics can unlock significant potential.
- Over 60 percent rely on traditional pricing methods.
- Industry growth reached 3.5 percent in July.
- Investments in advanced pricing models are essential for competitiveness.
New Delhi, Sep 8 (NationPress) Currently, fewer than 40 percent of firms in India's industrial goods manufacturing sector employ data-driven pricing strategies, indicating vast opportunities for growth, according to a report released on Monday.
The transition to advanced analytics-driven pricing could unveil considerable potential within India’s $750 billion industrial goods sector, as stated in a report by the Boston Consulting Group (BCG).
This sector contributes nearly 13 percent of the GDP yet lags behind international competitors due to outdated pricing practices. The report also observed that more Indian companies are now adjusting their prices with greater frequency, demonstrating increased agility in responding to market dynamics compared to past years.
The study found that over 60 percent of companies still depend on traditional cost-plus pricing or uniform list pricing, while under 40 percent are utilizing data-driven, customer-specific pricing approaches. In contrast, global competitors are increasingly leveraging advanced analytics, real-time intelligence, AI-driven insights, and value-based pricing strategies.
“In India’s industrial goods sector, pricing largely remains a back-office function with limited executive oversight, relying heavily on uniform list pricing. Global counterparts are shifting towards dynamic pricing models powered by analytics, real-time intelligence, and value-based strategies to drive growth and enhance margins,” said Kiran Pudi, BCG Partner & Director.
Industry leaders must invest in advanced pricing models, digital infrastructure, and organizational design to transform pricing into a genuine source of competitive advantage, the firm emphasized.
Analysts have indicated that recent GST rate cuts on capital goods and industrial inputs will help reduce manufacturing costs.
According to the latest government data, India’s industrial growth, as measured by the Index of Industrial Production (IIP), reached a four-month high of 3.5 percent in July, buoyed by robust performance in the manufacturing sector, up from 1.5 percent in June.
Point of View
It is evident that embracing data-driven pricing strategies is not merely an option but a necessity for India’s industrial sector. With the potential to enhance competitiveness and drive economic growth, it is imperative for industry leaders to prioritize investments in advanced analytics and innovative pricing models to keep pace with global peers.
NationPress
08/09/2025
Frequently Asked Questions
What percentage of Indian industrial companies currently use data-driven pricing?
Less than 40 percent of companies in India's industrial goods manufacturing sector employ data-driven pricing strategies.
What is the contribution of the industrial goods sector to India's GDP?
The industrial goods sector contributes nearly 13 percent to India's GDP.
What has been the recent trend in India's industrial growth rate?
India's industrial growth rate rose to a four-month high of 3.5 percent in July, driven by strong manufacturing performance.
How are global competitors enhancing their pricing strategies?
Global players are increasingly utilizing advanced analytics, real-time intelligence, AI-driven insights, and value-based pricing strategies.
What can industry leaders do to improve pricing strategies?
Industry leaders need to invest in advanced pricing models, digital infrastructure, and organizational design to enhance pricing as a competitive advantage.
