Tech to drive India's manufacturers growth: Survey

Majority of Indian manufacturers are embracing technology as a catalyst of future profitability and global competitiveness. However, a significant share of companies are allocating less than 10% of their budgets to technology, according to a study by the Confederation of Indian Industry (CII).

India's manufacturing sector is going through a transformation, fueled by adoption of technologies such as Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), robotics, and automation.

This transformation can support the goal of increasing manufacturing's contribution to India's gross domestic product to 25% in the next few years, according to the report titled 'Smart Manufacturing: Unlocking India's Potential'.


"By embracing these advancements, the country can gain a competitive edge globally and establish itself as a manufacturing leader," said Deepak Shetty, Chairman of the Council on Manufacturing Excellence, CII and CEO & Managing Director, JCB India Limited. The survey covered enterprises of varying sizes, ranging from ₹5 crore to over ₹24,000 crore.

In the next two years, sectors aim to allocate 11-15% of their budgets towards technology investments to boost efficiency and innovation, the report mentioned.

While high-capital industries like semiconductors, aerospace, and automotive are leading the way in adopting advanced technologies, traditional sectors like textiles and food processing are taking longer to embrace digitalisation, it added.

The manufacturing sector is undergoing a transformative moment, where advanced technologies are reshaping processes and addressing challenges like supply chain visibility to drive industrial excellence, said Deepak Jain, Co-Chair of the Council on Manufacturing Excellence, CII and Chairman, Lumax Group.

The report also outlined several barriers to technology adoption.