India’s industrial goods manufacturing sector currently uses data-driven pricing strategies, leading to immense potential for development in future. This information was given in a report on Monday.

The Boston Consulting Group (BCG) report states that these companies moving towards advanced analytics-driven pricing can unlock India’s $ 750 billion industrial goods sector.

This sector currently contributes about 13 percent to GDP, but is lagging behind global competitors due to outdated pricing practices.

The firm also stated that nowadays more Indian companies are adjusting their prices and are becoming more aware of market changes than previous years.

The study has received information that more than 60 percent of companies are dependent on traditional cost-plus pricing and uniform list pricing.

At the same time, less than 40 percent of companies use data-driven, consumer or deal-specific pricing strategies.

Global players are using rapid advanced analytics, real time intelligence, AI-driving insight and value based price strategies.

Kiran Mint, APAC head of Partner and Director-Pricing Practice in BCG, said, “Price fixation in India’s industrial goods sector is mainly a back-office work, with limited executive ownership and dependence on uniform list pricing.

Global competitive companies are moving towards dynamic pricing fixation run by analytics, real-time intelligence and value-based strategies to increase development and margin.

The company said that industry leaders need to increase investment in advanced pricing models, digital infrastructure and organizational design to make pricing a right source of competitive advantage.

Analysts have said that the GST rate cut on capital goods and industrial input will reduce manufacturing costs.

According to government’s latest data, India’s Industry Growth based on the Index of Industrial Production (IIP) rose to a four -month high of 3.5 percent in July, the result of a strong performance of the manufacturing sector. The industrial growth rate intensified at 1.5 percent of June in July.

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