Only 40% of Indian Industrial Firms Use Smart Pricing — Huge Growth Potential Ahead
New Delhi, Sept 8 – Fewer than 40% of companies in India’s industrial goods manufacturing sector are using modern, data-driven pricing strategies, according to a new report by Boston Consulting Group (BCG). This means there’s a huge opportunity for growth in the country’s $750 billion industrial goods market.
The report says most Indian firms still rely on outdated pricing methods like cost-plus pricing or fixed price lists. In contrast, global competitors are using advanced tools like real-time data, AI insights, and value-based pricing to adjust faster to market changes and boost profits.
India’s industrial sector makes up about 13% of the country’s GDP, but it’s falling behind international players mainly due to these older pricing systems.
BCG Partner and Director Kiran Pudi said that in India, pricing is often treated as a back-office task with little involvement from top leadership. Meanwhile, companies abroad are turning pricing into a key business strategy using analytics and smart pricing models to increase both sales and profit margins.
The report suggests that Indian firms need to start investing in digital tools, advanced pricing models, and stronger leadership in pricing decisions. Doing this can help them stay competitive globally and unlock more value from each deal.
However, there are some positive signs. The report noted that more Indian companies are beginning to adjust prices more frequently and respond better to market changes than they did in previous years.
There’s also some good news on the cost front. GST rate cuts on capital goods and industrial inputs are expected to lower manufacturing costs, giving companies more room to innovate and compete.
According to government data, India’s industrial growth rose to 3.5% in July, the highest in four months, mainly due to strong performance in the manufacturing sector. This is a jump from 1.5% growth in June.
With smarter pricing and better tools, experts believe India’s industrial sector can grow much faster in the years ahead.
