How Indian Manufacturers Are Rethinking And Transforming Their Technology Investments
- Chinmay
- December 31, 2024
- Artificial Intelligence, India, Industrial IoT, Internet of Things
- AI in manufacturing, Digital Transformation, Indian manufacturing, Industry 4.0, IoT, manufacturing challenges, ML in manufacturing, robotics, Smart Manufacturing, supply chain visibility
- 0 Comments
Indian manufacturers are beginning to embrace the transformative potential of advanced technologies to stay competitive and drive profitability. Yet, current investments in digital tools such as the Internet of Things (IoT), robotics, and Big Data remain modest, with most manufacturers dedicating less than 10% of their budgets to these areas. This is set to change, with studies forecasting a rise in technology budgets to 11-15% over the next two years, signalling a shift toward a more digital-first approach.
A Shift Toward Digitalisation
High-capital industries like semiconductors, aerospace, and automotive are leading this digital transformation, leveraging technologies like IoT and robotics to streamline operations and enhance efficiency. Meanwhile, traditional sectors such as textiles and food processing are gradually adopting digital solutions, albeit at a slower pace. This shift is pivotal in achieving India’s national goal of increasing the manufacturing GDP share to 25% in the coming years.
Challenges to Adoption
Despite the promising outlook, Indian manufacturers face significant barriers to adopting advanced technologies:
- High Costs: Many small and medium enterprises (SMEs) struggle with the financial investment required for cutting-edge technology.
- Integration Issues: The difficulty of integrating new systems with legacy infrastructure remains a critical challenge.
- Talent Shortages: Workforce upskilling is essential, as the current talent pool often lacks the expertise to adopt and operate advanced systems.
Bridging the Gap
To overcome these hurdles, a collective approach is essential. Recommendations to accelerate digital transformation in the manufacturing sector include:
- Public-Private Collaborations: Establishing shared technology hubs to reduce costs and provide access to advanced tools.
- Increased Budget Allocations: Encouraging manufacturers to allocate a greater share of their budgets to IoT, AI, and other digital technologies.
- Industry-Academia Partnerships: Strengthening collaborations with academic institutions to develop skilled talent.
- Supportive Policies: Introducing government incentives and policies to encourage smart manufacturing adoption.
The Role of IoT and Emerging Technologies
- Supply Chain Visibility: IoT-enabled devices provide real-time data to track inventory and reduce bottlenecks.
- Operational Efficiency: AI and ML optimize production processes and predictive maintenance, minimizing downtime.
- Product Quality: Advanced robotics and analytics ensure consistency and reduce defects.
A Pivotal Moment for Manufacturing
Industry leaders view this as a critical moment for Indian manufacturing. By addressing the challenges of investment and workforce upskilling, the sector can unlock the full potential of digitalisation. The benefits extend beyond operational improvements, positioning India as a global manufacturing hub.
With the right strategies, Indian manufacturers can achieve sustainable growth, industrial excellence, and global competitiveness. IoT and smart manufacturing technologies hold the key to transforming the sector and driving it toward a future defined by innovation, efficiency, and resilience.
