New Delhi, Sept. 6 -- India's manufacturing sector is entering a new productivity era, with future gains set to depend increasingly on how companies redesign work, reshape organisations and deploy talent, while leveraging digital technologies and AI, as per a KPMG report.

According to KPMG, the traditional drivers of manufacturing productivity-wage arbitrage, scale economics and lean compliance-are beginning to flatten.

It noted in its report, "Productivity is Indian manufacturing's most powerful growth lever. A sustained 30% productivity gain could drive nearly 35% of future output." However, productivity improvements remain uneven across India's manufacturing sector.

Over 70 per cent of large manufacturing companies would need transf...