CII Manufacturing Competitiveness Study: Paving the Way for India’s Smart Manufacturing Future

The Confederation of Indian Industry (CII) recently unveiled its 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 study 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 spearheading the adoption of these technologies, while traditional sectors such as Textiles and Food Processing are progressively transitioning toward digitalization.

 Key Findings from the Report

• While most manufacturers acknowledge technology adoption as a crucial driver of profitability and competitiveness, current investments in these technologies remain modest. Many manufacturers allocate less than 10% of their budgets toward technology adoption.
• A significant shift in investment trends is anticipated, with manufacturers planning to allocate 11-15% of their budgets to technologies such as IoT, robotics, and Big Data in the next two years.
• Challenges persist, particularly for small and medium enterprises (SMEs), including high costs, unclear Return on Investment (ROI), and difficulties in integrating legacy systems.
• Workforce upskilling remains an urgent need to bridge the skills gap and enable seamless adoption of advanced technologies.

 Recommendations from the Study

To overcome these barriers, the study emphasizes several key recommendations:

• Foster public-private partnerships to establish shared technology hubs.
• Increase budget allocations for technology adoption.
• Strengthen collaboration between industry and academia to drive innovation and skill development.
• Implement supportive government policies to encourage broader adoption of smart manufacturing technologies.

Shaping the Future of Manufacturing

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.

By leveraging advancements in smart manufacturing, India has the potential to significantly improve its position in global value chains. This transformation is expected to create more employment opportunities, enhance product quality, and drive economic growth. Furthermore, with the government’s focus on initiatives such as Make in India, the Production Linked Incentive (PLI) Scheme, Digital India, SAMARTH Udyog Bharat 4.0, the National Mission on Interdisciplinary Cyber-Physical Systems, and the India AI Mission, the groundwork for a competitive and robust manufacturing sector has already been laid.

Through 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.

Read the full report at: https://bit.ly/4fFRuQA