CII Launches Second Part of Manufacturing Competitiveness Study: Paving the Way for India’s Smart Manufacturing Future
The Confederation of Indian Industry (CII) has launched the second part of its landmark Manufacturing Competitiveness Study, focusing on the transformative impact of smart technologies on India’s manufacturing sector. The report, titled ‘Smart Manufacturing: Unlocking India’s Potential,’ highlights the sector’s ongoing digital transformation and its critical role in achieving the ambitious goal of increasing the manufacturing GDP share to 25% in the near future.
The report showcases how cutting-edge technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), robotics, and automation are reshaping the manufacturing landscape, driving optimization, innovation, and global competitiveness. High-capital industries like Semiconductors, Aerospace, and Automotive are leading the charge in adopting these technologies, while traditional sectors like Textiles and Food Processing are gradually transitioning towards digitalization.
Key findings reveal that while most manufacturers recognize technology adoption as a critical driver of profitability and competitiveness, current investments remain modest, with many allocating less than 10% of their budgets. However, a shift towards higher investment—targeting 11-15% of budgets—is expected in the next two years, particularly in IoT, robotics, and Big Data. Challenges such as high costs, unclear Return on Investment, and the integration of legacy systems persist, especially for small and medium enterprises (SMEs). Additionally, the report underscores the urgent need for workforce upskilling to bridge the skills gap and enable seamless adoption of advanced technologies.
To address these barriers, the study recommends fostering public-private partnerships to establish shared technology hubs, increasing budget allocations for technology, strengthening industry-academia collaboration, and implementing supportive policies to encourage broader adoption of smart manufacturing.
Speaking about the report, Mr Deepak Shetty, Chairman of the Council on Manufacturing Excellence, CII and CEO & Managing Director, JCB India Limited, said, “India's manufacturing landscape is undergoing a significant transformation, driven by the rapid adoption of innovative technologies. This report explores the technological revolution reshaping manufacturing, highlighting how smart technologies are essential for boosting productivity and efficiency. By embracing these advancements, India can gain a competitive edge globally and establish itself as a manufacturing leader.”
Mr Deepak Jain, Co-Chair of the Council on Manufacturing Excellence, CII and Chairman, Lumax Group, said, “This report highlights a transformative moment for India's manufacturing sector, where advanced technologies are reshaping processes and addressing challenges like supply chain visibility to drive industrial excellence.”
As India stands at the cusp of a manufacturing revolution, CII is committed to fostering an ecosystem that supports digital transformation and ensures that all segments of the manufacturing sector—from high-tech industries to SMEs—can thrive in the era of Industry 4.0. With initiatives aimed at bridging skill gaps, addressing cost barriers, and promoting technology adoption, CII aims to work closely with the Government to position India as a trusted global manufacturing hub.
28 December 2024
New Delhi