India's Big Automation Bet: Manufacturing To Compete Beyond China Plus One

Deep digital skills, a young workforce, and rising domestic and global demand enable India to be well-suited to spearhead the next age of industrial expansion.

India is not just preparing for the future of manufacturing. It is poised to define it.

Source : ABPLIVE AI

By Bir Singh

India is entering a decisive phase in its industrial evolution. Powered by intelligent systems, policy reforms, and technology-driven innovation, the country's manufacturing sector is accelerating toward high-level automation as global supply networks expand and competitive forces change. Automation is fundamental for India's manufacturing competitiveness, given the global realignment of supply chains and the rise of the China+1 strategy.

Automation As The Catalyst For Industrial Growth

Automation is being used on a large scale across key manufacturing hubs including Pune, Chennai, Bengaluru, and more, to improve productivity, cut waste, and boost throughput. To meet rising global standards, automotive, electronics, pharmaceuticals, and FMCG companies are adopting advanced systems like programmable logic controllers, real-time data dashboards, digital twins, and collaborative robots. 

The government’s support has been instrumental. Initiatives like Make in India, the Production-Linked Incentive (PLI) Scheme, and SAMARTH Udyog Bharat 4.0  have established a favourable atmosphere for high-value manufacturing. By 2025, the National Manufacturing Policy wants the sector's GDP contribution to be 25%. With over 90% 5G penetration and the lowest data prices globally, India already has the foundational infrastructure to sustain connected, smart factories at scale.

The impact is visible. Predictive maintenance made possible by automation lowers equipment failure by up to 30%. AI-driven quality control systems increase defect detection rates by over 40%. Industrial IoT and automation adopters report up to a 20% reduction in operational expenses and notable production agility improvement.

The Shift Toward Autonomous Operations

Dark factories, facilities capable of operating with minimal human oversight, are beginning to emerge in the Indian landscape. These are driven by totally coordinated systems whereby cloud infrastructure, edge computing, artificial intelligence, and robotics interact. High accuracy, minimum resource use, and continuous 24/7 operation are the goals.

While still in early stages, the promise is substantial. Dark factories can cut energy usage by 30% to 40% worldwide and lower labour costs by as much as 70%. This approach presents a strong path forward for Indian producers wanting to grow sustainably and compete globally. However, success will depend on overcoming key barriers: high upfront investment, skill gaps, and digital security risks.

From Industry 4.0 To 5.0: Reimagining The Factory Floor

Marked by the confluence of artificial intelligence, internet of things, machine learning, and cloud computing, India's ongoing transition to Industry 4.0 is creating the foundation for the next leap: Industry 5.0. Emphasising personalisation, collaboration, and sustainability, this new approach combines technological advancement with human-centric design.

Mass customising without affecting scale is made possible by collaborative robots (cobots), generative artificial intelligence, and real-time human-machine interfaces. With a CAGR of 18.1%, the worldwide Industry 5.0 market, worth $154.7 billion in 2023, is projected to hit $691 billion by 2032. This change is a strategic distinction for India in a world that values resilience, agility, and ecological accountability rather than only a technological upgrade.

A Strategic Imperative For India’s Global Ambition

India’s ambition to become a $1 trillion manufacturing economy by 2030 hinges on how effectively it can automate, digitise, and scale. The move toward intelligent manufacturing is a structural change, not a trend. Automation is no longer about replacing employees. It's about enhancing productivity, accelerating innovation, and building a globally competitive industrial base.

Deep digital skills, a young workforce, and rising domestic and global demand enable India to be well-suited to spearhead the next age of industrial expansion. Automation is the multiplier that can unlock this potential.

The message is simple for manufacturers, policymakers, and technology leaders: the next decade belongs to those who invest boldly in smart automation. The fundamental work is done. The tools are available. The opportunity is real.

India is not just preparing for the future of manufacturing. It is poised to define it.

(The author is the Co-founder of Addverb)

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