Industry 4.0 represents the fourth revolution, enabling smart manufacturing and the establishment of intelligent factories with the primary goal of boosting productivity, efficiency, and flexibility, while facilitating more informed decision-making and customization in manufacturing and supply chain operations. While India has demonstrated commendable prowess in integrating cutting-edge technologies like artificial intelligence, robotics, and the Internet of Things into its manufacturing processes, the focus must now shift towards developing a skilled and adaptable workforce.
There is a pressing need for a platform where industry and educational institutions collaborate to design programs that equip individuals with the knowledge and skills demanded by modern manufacturing. The Indian government is earnestly addressing this issue. the Ministry of Heavy Industries and Public Enterprises has launched several programs, including SAMARTH Udyog Bharat 4.0, also known as SAMARTH Advanced Manufacturing and Rapid Transformation Hubs. Experts believe that India now possesses both the physical and digital infrastructure to elevate the manufacturing sector’s share in the economy’s output and emerge as a significant player in global supply chains.
Manufacturing is projected to reach Rs 774.90 billion by FY 2027, expanding at a compound annual growth rate of 13.32% during FY 2023 – 2027, according to a study by Global Newswire. A robust IoT market in manufacturing will further bolster the adoption of smart manufacturing in India. According to analysis by McKinsey, if Indian companies embrace Industry 4.0 across functions such as manufacturing, supply chain, logistics, and procurement, they could potentially increase their operating profits by 40% with less than 10% of the planned capital expenditure.
Trends Redefining the Manufacturing Industry in India
In the dynamic landscape of the manufacturing industry, constant evolution is essential to adapt to technological advancements and changing consumer demands. Looking ahead, the key trends that are expected to shape the trajectory of the manufacturing industry in India are as follows:
1. Digital Transformation: Embracing digital technologies is no longer optional but imperative for manufacturers seeking to stay competitive. Digital transformation is gradually revolutionising all aspects of the manufacturing sector. A Gartner study has unveiled that 67% of CIOs are prioritizing the improvement of operating models as the most critical outcome for their digital technology investments.
2. Industry 4.0 and Smart Manufacturing: Industry 4.0, characterized by the integration of cyber-physical systems, IoT, cloud computing, and cognitive computing, heralds the era of smart manufacturing. A NASSCOM study recently highlighted that Industry 4.0 is at an inflection point in the manufacturing industry in India, with over two-thirds of Indian manufacturers embracing digitisation by the year 2025. This trend is also expected to raise India’s manufacturing GDP by 25 percent.
3. Digital Twin powered by augmented reality: Digital twin technology basically encompasses offering virtual replicas of physical assets such as factories or offices thus allowing organisations to monitor their assets in real-time and collect data to use it to improve operations. A recent Nokia MBiT index report has found that digital twin technology powered by metaverse will significantly extend business transformation potential. The report also suggests that human augmentation and digital-physical fusion are the key concepts underpinning the metaverse. In addition to this XR-enabled workplaces will also come into being.
4. Robotics and Automation: Robotics and automation continue to play a pivotal role in enhancing productivity, safety, and precision in manufacturing processes. Statista has forecasted that forecasted that the Robotics market in India will achieve a projected revenue of approximately US$694.10 million in the year 2024. Within this market, the segment expected to exhibit dominance is Service Robotics, with an anticipated market volume of around US$295.60 million in the same year.
In conclusion, the future of manufacturing can be seen to unlock new opportunities for growth, and efficiency in different areas. In addition to this, digitalisation will also be a priority for the Indian manufacturing sector. However, NASSCOM has highlighted in its report that measurable RoI, consistent data policy, ecosystem support, and the investment to be made by the Government of India will be key to accelerated adoption of digital transformation technologies.