New Delhi, Sept. 5 -- A sustained 30 per cent improvement in workforce productivity could drive nearly 35 per cent of India's future manufacturing output, making productivity the most powerful growth lever for the sector's long-term expansion, according to a KPMG report.

The report said productivity improvements have a stronger and more lasting impact than growth driven only by scale or demand, as they can raise output, margins and competitiveness year after year.

"Productivity is Indian manufacturing's most powerful growth lever," the report said, adding that productivity gains "embed permanently into the system, raising output, margins, and competitiveness year after year."

KPMG's analysis of more than 130 large Indian manufacturing ...