The rollout of the 5G spectrum can support the adoption of Industry 4.0 in India.

In a major leap toward Industry 4.0, Union Cabinet on 15 JUN 2022 approved the proposal of the Department of Telecommunications to conduct an auction of the 5G spectrum. A total of 72,097.85 MHz of spectrum with a validity period of 20 years will be put to auction to be held by the end of July 2022. The rollout of the 5G spectrum will improve the quality of digital connectivity in India and create new use cases for the application of cutting-edge technologies such as artificial intelligence, virtual reality, and augmented reality, to name a few.

5G Technology

5G is not merely an upgrade of the existing communication technology but it’s altogether a complete transformation. 5G technology, besides offering up to 100 times the speed and 1,000 times the capacity of today’s mobile networks, will provide ultra-reliability, low latency, reduced energy use, and massive connectivity both inside and outside of the building.

5G, with its faster speed, lower latency, and ability to connect vastly higher numbers of devices than previous generations of mobile technology, is going to become the backbone of industry 4.0. According to a PWC study “The Global Impact of 5G”, 5G is estimated to contribute around USD 42 billion to India’s GDP by 2030.

As mentioned earlier, the 5G spectrum will support innovative applications of industry 4.0 technologies such as artificial intelligence, machine learning, virtual reality and augmented reality.?

Industry 4.0 in India

Industry 4.0 can be described as a convergence of the real and virtual world. It is characterized by the increasing digitalization and interconnection of products, value chain, and business models. Industry 4.0 is driven by an amalgamation of emerging technologies such as data volumes, computational power, Internet of Things (IoT), business analytics, augmented reality, artificial intelligence, elemental design, simulation, advanced robotics, additive manufacturing, sensor-based technologies,?and cyber-physical systems.

At present, the global market for Industry 4.0 is valued around USD 64.9 billion and is estimated to grow by 150% to around USD 160 billion by 2026. India, at present, is lagging behind in the adoption of industry 4.0 technology. India, the sixth largest manufacturing country in the world, is still in the post-electrification phase with the use of technology limited to systems that function independently of each other. Industries with limited resources such as MSMEs and agriculture have little to no exposure to such technology due to high-cost barriers and lack of information and training. Lack of skilled professionals and limited knowledge base are some of the supply-side challenges in the adoption of industry 4.0 in India. On the demand side availability of a cheap labor force makes adopting industry 4.0 less attractive in terms of Return on Investment.

Role of Government

It is extremely crucial for the Indian government t to be a critical stakeholder in bringing about the Industry 4.0 revolution. It can take a lead from Germany, which is considered a global leader in Industry 4.0 technology, where the government provided the much-required policy support to its automobile industry incentivizing them in adopting such technologies. SAMARTH Udyog Bharat, National Manufacturing Policy - 2017, Centre of Excellence (CoE) on IT for Industry 4.0, National Program on Artificial Intelligence, and Mission on Cyber-Physical Systems are some of the important imitative by the Government.

Industry 4.0 offers enormous untapped potential for the Indian economy. A collaborative effort of all stakeholders is required in bringing about the Industry 4.0 revolution. The role of the government as an enabler and a facilitator would be extremely crucial.