Study on Effect of Functional Competency on Performance of Indian Manufacturing Sector

India is one of the fastest emerging global manufacturing hub with a large number of firms shifting their manufacturing base to the country due to cheap labor and good supplier(s) base. Over the years, India has the largest number of companies, outside of Japan, that have been recognized for excellence in quality. As many as 21 companies have received the Deming Excellence awards; 153 companies have achieved Total Productive Maintenance (TPM) Excellence Award for their total productivity management practices by the Japan Institute of Plant Maintenance (JIPM) committee (Source: IBEF, 2010). Here in this research article author(s) conducted an empirical survey among Indian manufacturing firms to understand how manufacturing competency effect the firm performance. It has been observed that manufacturing competency has negative impact on firm performance which is contradicting with the so far empirical studies conducted in European, Japanese and American countries. Here in this study authors provides in depth analysis to explain this negative impact and how this can lead to positive impact. Key‐Words Manufacturing competency, Manufacturing Sector, Firm Performance