New Delhi, Sept. 7 -- India's manufacturing sector is entering a new phase of productivity growth, with future gains increasingly dependent on redesigning work, restructuring organisations and deploying talent more effectively while leveraging digital technologies and artificial intelligence (AI), according to a KPMG report.

KPMG said traditional drivers of manufacturing productivity, including wage arbitrage, economies of scale and lean compliance, are beginning to flatten.

"Productivity is Indian manufacturing's most powerful growth lever. A sustained 30 per cent productivity gain could drive nearly 35 per cent of future output," the report noted, as cited by ANI.

However, productivity improvements remain uneven across the sector. Mo...