Data-driven pricing could unlock massive potential in India’s $750 billion industrial goods sector: Report

India’s Industrial Goods Sector Poised for Growth with Data-Driven Pricing

In India’s booming industrial goods manufacturing sector, only about 40% of companies are using smart, data-driven pricing strategies right now. This leaves plenty of room for exciting growth ahead, according to a new report from Boston Consulting Group (BCG) released on Monday.

The sector, worth a massive $750 billion, plays a key role in India’s economy by contributing nearly 13% to the GDP. But it’s falling behind global competitors because many firms stick to old-school pricing methods. The good news? More Indian companies are starting to tweak their prices more often, making them quicker to adapt to market changes than before.

The BCG report highlights that over 60% of these companies still rely on basic approaches like cost-plus pricing or fixed list prices. Just under 40% are shifting to advanced tactics, such as customer-specific or deal-based pricing powered by data. In contrast, global players are leading the way with tools like advanced analytics, real-time intelligence, AI-driven insights, and value-based pricing strategies to boost profits and growth.

Kiran Pudi, a Partner and Director at BCG, explains it simply: "In India’s industrial goods sector, pricing is often handled in the back office with little top-level involvement and a focus on uniform list pricing. But global companies are moving to dynamic pricing powered by analytics, real-time data, and value-based methods to drive real growth and better margins."

To catch up, industry leaders must invest in cutting-edge pricing models, digital tools, and better team structures. This could turn pricing into a big competitive edge for Indian firms in the manufacturing sector.

Adding to the positive vibe, recent GST rate cuts on capital goods and industrial inputs are helping lower manufacturing costs, making it easier for companies to compete.

Government data shows India’s industrial growth is picking up steam too. The Index of Industrial Production (IIP) jumped to 3.5% in July—a four-month high—fueled by strong manufacturing performance. That’s up from just 1.5% in June, signaling brighter days for the sector’s future.