Strategic Pricing could unlock growth and competitiveness in India’s $750 billion industrial goods sector: BCG Report

India’s industrial goods sector, contributing nearly 13% to the country’s GDP, is at a critical juncture. A new report by Boston Consulting Group (BCG), “Cracking the Code: Pricing Strategies for Industrial Goods Players in India”, highlights that despite the sector’s significance, pricing practices remain outdated, with most companies still relying on traditional cost-plus methods and uniform list pricing.

BCG’s survey of 81 companies reveals that fewer than 40% have adopted data-driven, customer- or deal-specific pricing strategies. In contrast, global peers are increasingly leveraging advanced analytics, real-time intelligence, and value-based approaches to stay competitive.

Commenting on the findings of the report, BCG Partner & Director, Mr. Kiran Pudi, who leads the firm's Pricing topic in APAC, said, “In India’s industrial goods sector, despite its critical 13% contribution to GDP, pricing remains largely a back-office function with limited executive ownership and reliance on uniform list pricing. Our survey shows that fewer than 40% have adopted data-driven, customer or deal-specific pricing. While cost plus pricing remains dominant and Power and Custom Games persist, global peers are shifting to Dynamic pricing Games powered by analytics, real-time intelligence, and value-based strategies to unlock growth and margins. For Indian players, catching up is critical to remain competitive, and based on our benchmarks and expertise, we have identified key levers to help them do so.”

Key findings include:

• Cost-plus pricing dominates: Over 60% of companies continue to rely primarily on cost-plus approaches, limiting margin optimization.
• Slow adoption of advanced pricing: Less than 40% of players have moved towards dynamic or value-based pricing models. However, we are seeing companies adjusting their prices more frequently, becoming more agile in responding to market shifts compared with previous years.
• Global peers pulling ahead: Advanced analytics and AI-powered pricing strategies are reshaping competitiveness in global industrial goods markets.
• Call to action for India's Industrial sector: Companies must shift from reactive pricing to proactive and strategic pricing, with the C-suite taking the reins. Leaders need to drive investments in advanced pricing models, digital infrastructure, and organisational design to make pricing a true source of competitive advantage.

The report outlines a roadmap for Indian industrial goods players, identifying key levers across pricing strategy, governance, analytics, and execution that can help unlock untapped value.