Indian manufacturers see technology adoption as key to profitability, yet allocate less than 10% of budgets
Dec 29, 2024
New Delhi [India], December 29 : Most manufacturers recognise technology adoption as a critical driver of profitability and competitiveness, but current investments remain modest, with many allocating less than 10 per cent of their budgets, stated a Manufacturing Competitiveness Study of Confederation of Indian Industry (CII).
However, the report added that a shift towards higher investment--targeting 11-15 per cent of budgets--is expected in the next two years, particularly in Internet of Things (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), it said.
Additionally, the report underscores the urgent need for workforce upskilling to bridge the skills gap and enable seamless adoption of advanced technologies.
The Confederation of Indian Industry (CII) released 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 per cent 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.
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, 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."
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."
