Indian Manufacturers Acknowledge IoT, Data Analytics and Robotics as Key to Profitability but Allocate Modest Budgets

• Chinmay
• January 2, 2025
• India, Industrial IoT, Internet of Things
• Digital Transformation, industry-academia collaboration, IoT in manufacturing, manufacturing competitiveness, smart manufacturing India, technology adoption challenges, workforce upskilling
• 0 Comments

Indian manufacturers are increasingly recognizing the transformative potential of technology in driving profitability and global competitiveness. However, a recent Manufacturing Competitiveness Study by the Confederation of Indian Industry (CII) reveals that many companies currently allocate less than 10% of their budgets to technology adoption.

Shifting Investment Trends

The report highlights a promising shift in investment trends, with manufacturers aiming to allocate 11-15% of their budgets towards technology adoption within the next two years. Key areas of focus include:

• Internet of Things (IoT): Enhancing real-time data insights and operational efficiency.
• Robotics: Streamlining manufacturing processes and increasing precision.
• Big Data Analytics: Driving informed decision-making and innovation.

While high-capital industries such as Semiconductors, Aerospace, and Automotive lead in technology adoption, traditional sectors like Textiles and Food Processing are gradually embracing digital transformation.

Challenges in Technology Adoption

Despite the positive outlook, several barriers hinder widespread technology adoption, especially among Small and Medium Enterprises (SMEs):

• High Costs: The initial investment required for advanced technologies remains a significant challenge.
• Unclear ROI: Uncertainty about the return on investment prevents businesses from committing larger budgets.
• Integration Issues: Legacy systems are difficult to align with new digital technologies.

The Need for Workforce Upskilling

The report emphasizes the urgent need for workforce upskilling to bridge the skills gap and facilitate seamless integration of smart technologies. Building a tech-savvy workforce is critical to ensuring the effective implementation of IoT, AI, and robotics in manufacturing processes.

Recommendations for Driving Smart Manufacturing

To overcome these challenges and accelerate digital transformation, the study recommends:

• Public-Private Partnerships: Establish shared technology hubs to make advanced tools accessible to SMEs.
• Increased Budget Allocations: Encourage higher spending on technology to boost innovation.
• Industry-Academia Collaboration: Strengthen ties to nurture a skilled workforce and drive research in smart manufacturing.
• Supportive Policies: Implement government initiatives that incentivize technology adoption and ease the transition to smart manufacturing.

Leadership Perspectives
Deepak Shetty, Chairman of the Council on Manufacturing Excellence, CII, and CEO & MD of JCB India Limited, remarked: “India’s manufacturing landscape is undergoing a significant transformation, driven by the rapid adoption of innovative technologies.”

Deepak Jain, Co-Chair of the Council on Manufacturing Excellence, CII, and Chairman of Lumax Group, added: “This report highlights a transformative moment for India’s manufacturing sector, where advanced technologies are reshaping processes and addressing challenges like supply chain visibility to drive industrial excellence.”

Unlocking India’s Smart Manufacturing Potential

The report, titled “Smart Manufacturing: Unlocking India’s Potential,” underscores the critical role of advanced technologies like IoT, AI, ML, and robotics in achieving India’s goal of increasing the manufacturing sector’s contribution to 25% of GDP. With strategic investments, workforce development, and policy support, India’s manufacturing sector is poised to become a global leader in smart manufacturing.