How Lean Six Sigma Can Be Beneficial For India’s Economic Growth


This article is written by Puja Das, working at KPMG. It will help new businesses and startup owners to understand how the economy works and how to make business strategies keeping in mind the pandemic that has struck the world.

India is having one of the growing economies around the world. But the sudden effect of the pandemic stuck it hard, the corona has damaged the economic growth around the globe to a large extent even without sparing the Indian economy.

India lost the tag of the world’s fastest-growing economy early in 2020. It was the weakest pace in at least 27years where India’s GDP growth was behind China 6.2 percent in April-June 2020.

In Medival time, India was once the lead manufacturer and exporter of textile and metal products. But at present, it has less than 1 percent share of the global trade and poor in terms of competitiveness. There has to be rapid growth to catch-up with other nations.

Manufacturing industries had started to shut down with facing huge economic losses. Whereas developing countries like India largely depend on the manufacturing sector for growth and employment. The government and policymakers have revisited the growth story and identifying the flaws. And soon after India’s development with the growth strategy has accentuated a well-diversified industrial base to prolong its dream of industry-led development.  

The future of the manufacturing industries will be technologically driven by Artificial Intelligence, Big Data, and direct manufacturing processes. New vehicles like reverse engineering, continuous innovation, product life cycle, and advanced machinery are required to ride through this wave. These will altogether lead to a new product and processes. The main vision behind this whole process is to create and regenerate all types of wealth by encouraging and supporting appropriate manufacturing activities.




Six Sigma Helping in India’s Economic Growth


Six Sigma has emerged as one of the most effective approaches to business improvement strategies overtime. It mainly aims at improving the effectiveness and efficiency of the organization. The lean six sigma methodology addresses the main root cause and focuses on the target-oriented result, in terms of- wastage, improvement, and timespan. 

In this condition of economic crisis, quality is not the only winning criterion. There are various other factors that are needed to be taken care of. Some of them can be disciplined management, data-driven, and defect elimination in any industry processing from manufacturing to transactional, from products to services.

Indian Industries have undergone both the periodic impact of transformation- before and after reforms. Initially, the focus was on core infrastructural production in the large scale public sector and the private sector. Here the thrust was on productivity based theory on Taylor’s principle of Scientific Management. But after globalization and liberalization, quality surfaced got major attention along with productivity. Due to opening up the geographical barriers there’s been an increasing pressure of competing with the global industries. Hence, overall operational excellence becomes the necessity for the Indian industry to remain competitive in the global market.  


Economic Growth


However, many Indian Industries have successfully gone through the business improvement strategy to their overall industrial benefits. Still, the penetration of the Six Sigma approach into the system is not as encouraging as it should be. The industries with proper implementation of lean six sigma to the system can further strengthen the edges to compete with the global market. And hence, thereby contributing to the country’s economy by showing a positive effect on GDP.


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Why Lean Six Sigma Strategy?


Below are the key aspects of why Lean Six Sigma strategy should be considered by the industries. It will benefit more than other business improvement methodologies and total quality management:

  • Tools and techniques:  A specific set of tools and analytical techniques that are used to identify and solve the problems. 
  • Process and methodology: Six Sigma focuses on the root problem and solves it by integrating both human aspects (cultural change, training, customer focus, etc.,) and process aspects (stability of the process, reduce variation, capability, etc) of the continuous improvement.
  • Mindset and Culture: Six Sigma creates a powerful thinking process that relies on data and operational achievement goals with continuous detection and improvement. An improvement process does not produce the desired result unless it includes accurate tools and techniques that define the activities of the process steps. And thereafter the methodology insists on a systematic database approach to solve the problem.


It is the need of the hour to penetrate the Six Sigma with the Lean approach into the Indian Industry. As proper management of waste among manufacturing organizations is one of the biggest challenges faced by the industries. To apply the Lean Six Sigma tools and techniques in boosting up the economy is prior important to increase the per capita income.

Someone being projected to sustain the economic growth with an increase in per capita income by providing better job satisfaction, job promotion, and employment opportunities, should check The KPMG Lean Six Sigma Certification training that enables individuals to improve business productivity and profitability


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