Industry 4.0: Smart and Intelligent Manufacturing in India Contributing 25% to GDP

Industry 4.0 is the new buzz word in manufacturing and provides an opportunity to Indian companies to leapfrog into manufacturing attractiveness - Dr Mahesh Y Reddy, Secretary General, PHD Chamber of Commerce and Industry

In recent years, India's manufacturing sector has witnessed a monumental shift fueled by the onset of Industry 4.0. This transformative revolution, marked by the integration of cutting-edge technologies like Artificial Intelligence (AI) and the Internet of Things (IoT), is redefining conventional manufacturing processes, elevating efficiency, productivity, and competitiveness to unprecedented levels.

Industry 4.0 signifies a pivotal transformation in manufacturing, where interconnected systems, automation, and real-time data analysis converge to forge intelligent, adaptable, and digitally-driven production environments. In India, this transition is not just theoretical but a tangible reality as manufacturers across diverse sectors embrace AI and IoT to augment their operations.

At the forefront of this revolution are visionary initiatives like "Make in India," "Skill India," and the "National Manufacturing Policy," orchestrated by the Department of Industrial Policy and Promotion. These initiatives aim to elevate the manufacturing sector's contribution to 25% of the Gross Domestic Product (GDP) by 2025, propelling India towards its aspiration of emerging as a global manufacturing hub. The momentum is palpable, with India securing the 30th position on the WEF global manufacturing index in 2018, and the Gross Fixed Capital Formation (GFCF) in the manufacturing sector reaching an impressive US$ 405.88 billion in the first half of the fiscal year 2019–2020.

Central to Industry 4.0 is the utilization of Artificial Intelligence, enabling machines to learn from data, identify patterns, and make informed decisions autonomously. AI algorithms analyse vast datasets generated by sensors and production equipment to optimize processes, predict maintenance needs, and reduce downtime. Predictive maintenance, driven by AI, pre-emptively identifies potential equipment failures, mitigating costly disruptions and enhancing asset utilization.

Additionally, the Internet of Things (IoT) plays a pivotal role in Industry 4.0 by connecting devices, machines, and systems to facilitate seamless communication and data exchange. IoT sensors embedded in machinery collect real-time data on performance, energy consumption, and product quality, empowering manufacturers to monitor operations remotely and make data-driven decisions. Through IoT-enabled smart factories, manufacturers gain unparalleled visibility and control over their production processes, enhancing efficiency and responsiveness.

Debjani Ghosh, President, NASSCOM , said, “Industry 4.0 has reached a tipping point in Indian manufacturing, with strong demand for increased investment in the next two years likely to create exceptional customer experiences and long-term business models. Moving forward, it will be fascinating to watch how prepared the Indian manufacturing industry is to adopt and scale Industry 4.0, which is largely determined by the use cases selected, the capacity to scale Proofs of Concept, and the alignment of IT and OT capabilities.”

In India, the adoption of Industry 4.0 technologies gains momentum across diverse sectors including automotive, electronics, pharmaceuticals, and consumer goods. Automotive manufacturers leverage AI and IoT to optimize supply chain management and enhance customer experiences, while electronics companies deploy AI-driven quality control systems to ensure product quality. Pharmaceutical firms utilize IoT-enabled sensors to monitor environmental conditions during drug manufacturing, ensuring compliance and product integrity.

As per a recent NASSCOM report , investments in Industry 4.0 solutions are on the rise, with the Indian manufacturing industry allocating substantial funds between $5.5 to $6.5 billion in the 2020-21 fiscal year. Supported by government regulations and private sector investments, this concerted effort aims to bolster India's digital transformation, driving the nation's GDP contribution to 25% by FY26.

Despite the promising trajectory, challenges persist, particularly for Micro, Small, and Medium Enterprises (MSMEs), grappling with issues related to scale, funding, and leadership in digital adoption. Nevertheless, smart manufacturing technologies hold immense potential to enhance India's long-term competitiveness and sustainability as it endeavours to lead the charge in the fourth industrial revolution.

In conclusion, Industry 4.0 offers a transformative opportunity for Indian manufacturing, enabling smart, digital, and interconnected production systems. Through the integration of AI and IoT, manufacturers can achieve heightened efficiency, agility, and innovation, fostering sustainable growth in the Fourth Industrial Revolution era.

Isler India leads this digital manufacturing revolution with our AI/ML-powered "Supply Network Control Tower" (SNCT), ensuring complete visibility at every stage of production pipeline along with predictive alerts on delay and potential solution scenarios to the customers. Our SNCT promotes transparency and trust by providing real-time updates, streamlining manufacturing processes. Aligned with Prime Minister Narendra Modi's 'Make in India' initiative, Isler India serves as a trusted partner for global entities across diverse industries, driving progress and sustainability in India's manufacturing landscape.

Author:

Chirag Kakkar, Co-Founder & COO of Isler India , is a visionary leader dedicated to driving innovation and operational excellence. Leading a dynamic team, he focuses on empowering businesses and elevating the manufacturing industry through cutting-edge technologies and pioneering approaches. Committed to making a significant impact, Chirag is at the forefront of shaping the future of industry with strategic leadership and a passion for excellence.