The National Association of Software and Services Companies (NASSCOM), in collaboration with Capgemini, announced the findings of a research study on the adoption of Industry 4.0 in India’s manufacturing sector.

The report, India Industry 4.0 Adoption: A Case to Mature Manufacturing Digitalization by 2025, sheds light on the maturity of digitalized manufacturing in India, and recommends a focus on increasing investments, scaling up foundational technology readiness, and enhancing capabilities. [1]

Figure 1. Industry 4.0 adoption can help manufacturing sector contribute 25% to GDP by FY26

Figure 1 shows these recommendations, cites the report, will help facilitate globally connected smart factories that will enable India’s manufacturing sector to become an intelligent industry and achieve the national growth target of $1.1tn by FY26.

Global Industry 4.0 evolution drivers

According to the report, investments in Industry 4.0 have grown by approximately 10X in the last decade and are expected to grow to $200 billion by 2025. [2]

India Industry 4.0 spend in discrete and course of manufacturing segments

With accelerated funding in foundational tech like Cloud and IoT, the Indian manufacturing sector has began pivoting to digitalization, cites the report, with $5.5 – $6.5 billion spent on Industry 4.0 in FY21. This accounts for almost 50% of the annual know-how spend by Indian producers. 75% of that is led by discrete producers in Auto, Electricals, and Electronics, whereas Chemicals and Pharma are main the method manufacturing section.

Micro, Small and Medium Enterprises (MSMEs) in India account for 33% of the manufacturing output and 45-50% of exports, throughout textile, meals processing, chemical, and electrical or tools. The analysis reveals that whereas the sector is going through challenges round scaling up Industry 4.0 options, financing, and management constraints are presenting alternatives to mitigate these challenges. [3]

References:

1. https://economictimes.indiatimes.com/small-biz/sme-sector/industry-4-0-adoption-can-help-manufacturing-sector-contribute-25-to-gdp-by-fy26/articleshow/89917853.cms
2. https://www.induqin.com/post/industry-4-0-adoption-can-help-manufacturing-sector-contribute-25-to-gdp-by-fy26
3. https://fooshya.com/2022/03/01/industry-4-0-adoption-will-help-manufacturing-sector-contribute-25-to-gdp-by-fy26/

Cite this article:

Thanusri swetha J (2022), Industry 4.0 adoption can help manufacturing sector contribute 25% to GDP by FY26, Anatechmaz, pp. 124