Industry 4.0: Fueling India’s Rise to Global Manufacturing Standards
India has long aspired to become a manufacturing and export powerhouse, reducing its dependence on imports and establishing itself as a global manufacturer capable of producing high-quality, competitively priced goods. Initiatives like ‘Make In India’ and ‘Aatmanirbhar Bharat’ were launched with the goal of boosting the manufacturing industry’s contribution to India’s GDP to 25% by 2025, a significant increase from the current 16%.
With its abundant technological resources and a substantial internal customer base, India has the potential to create globally competitive products. However, to achieve this, India needs more than just willingness; it needs Industry 4.0. This fourth industrial revolution, characterized by smart manufacturing and the integration of cyber-physical models and digital technologies, can provide the competency to produce goods and services with minimal defects and wastage.
Industry 4.0 presents an opportunity for India to change the narrative of its manufacturing industry, especially in light of the shifting global political scene and the renewed interest from developed nations to diversify their manufacturing bases. By embracing Industry 4.0 technologies, Indian manufacturers can experience increased efficiency, mass customization capacity, and resilience to external factors.
On the home front, several Indian manufacturers are already leveraging data and adopting AI-based predictive maintenance, autonomous operations, cloud infrastructures, and more to reduce operating costs, improve energy consumption and asset lifetimes, enhance production quality, and boost employee engagement. However, there is still progress to be made, as countries like Japan, Germany, and the US currently possess a higher conversion rate to smart factories.
To accelerate the adoption of Industry 4.0 technologies, the Indian government offers incentives like the design-linked incentive (DLI) for the semiconductor industry and the production-linked incentive (PLI) for the automobile sector. These schemes, along with initiatives like the Smart City mission and the Center for Industry 4.0 (C4i4) Lab, aim to raise awareness and create collaborative spaces for stakeholders to test capabilities.
Of the various technologies that comprise Industry 4.0, artificial intelligence (AI) stands out as a pivotal tool for success in the manufacturing sector. A recent study by the IBM Institute for Business Value (IBV) revealed that 78% of manufacturing executives consider AI to be the most important technology driving success in manufacturing. AI, combined with cloud services, big data analytics, and the Internet of Things (IoT), enables real-time data analysis, equipping manufacturers with better decision-making skills and offering increased productivity, efficiency, and cost reduction.
By collecting data from IoT devices and sensors embedded in machinery and production lines, AI-powered algorithms help manufacturers gain insights into their processes by swiftly analyzing inputs and identifying trends and patterns. AI also aids in detecting glitches and defects in machinery, contributing to better quality control. Moreover, AI and Industry 4.0 facilitate predictive maintenance, streamline supply chains, and identify potential workplace safety hazards.
Despite the advantages of AI and Industry 4.0, there are unique challenges hindering their widespread adoption in India’s manufacturing industry. Poor internet connectivity and network coverage in remote locations affect device communication and data transfer. However, the impending rollout of 5G promises to address these connectivity issues. Additionally, manufacturers must prioritize strong cybersecurity policies to counter potential cybersecurity and privacy risks associated with data security.
While the COVID-19 pandemic accelerated the digitization of industries globally, India’s future will depend on how well it overcomes the roadblocks to becoming Industry 4.0 ready. As sustainability takes center stage and manufacturers strive to do more with less, the integration of new-age technologies like AI, in combination with the potential of quantum computing, holds the key to building upon the progress made in previous industrial revolutions.
India has the potential to rise to global manufacturing standards by embracing Industry 4.0 and leveraging the power of AI. With government support, industry participation, and the right infrastructure, Indian manufacturers can unlock new levels of efficiency, productivity, and competitiveness, propelling the country towards its goal of becoming a manufacturing and export powerhouse.
