The adoption of the fourth Industrial Revolution or Industry 4.0 in India is at a nascent stage. It is expected that the Indian industry may witness widespread implementation. However, it still needs to develop in the near future due to high investment, lack of adequate cybersecurity norms, and lack of infrastructure.
Industry 4.0 Adoption in India
Although there are many profits, such as higher efficiencies, rapid speed, cost reduction, and safer factories to market, moreover, Industry 4.0 can provide competitive scenarios in the domestic manufacturing sector, which can further enhance its share in the global market. Additionally, the government’s direct investment and its strong focus on improving the manufacturing section of the country through many initiatives such as ‘Make in India’ and ‘National Policy for Advanced Manufacturing’. These promotive schemes widely create awareness in the Indian market for adoption. It is expected that Industry 4.0 could play a significant role in the development of the manufacturing sector’s share in India’s GDP to around 25% by 2022. It is also estimated from the current figures that the real valuation for the adoption of Industry 4.0 in India is unchecked. It is expected to cross to the 50 million marks in the coming years. Also, India’s MSME sector accounted for about 45% of total manufacturing output and 40% of full export.
There is a prediction from the Indian government that there are a vast number of critical stakeholders by putting the Indian MSME sector at the forefront to enhance Industry 4.0. This will improve the Indian capability in terms of infrastructure, exposure, and funds, with the growth of the Indian manufacturing base, a substantial IT industry, and a growing consumer base to offer India its unique position to expand Industry 4.0’s potential its fullest. Besides, there is a strong governing force reinventing the manufacturing ecosystem and collecting individual components together to increase the Indian market capabilities.
Advanced technology plays an essential role in the expansion of Industry 4.0; there is also a need to clarify the significant necessities of Industry 4.0 in Indian through enablement and education. Many countries are succeeded in the implementation of Industry 4.0, such as Germany, reveal that the government has a significant role to play by authorizing relevant curriculum in vocational training in addition to educational institutes infrastructure. Affiliating with the industry, the government can use its vast research infrastructure to encourage innovation and learn around Industry 4.0.
Introduction to the Adoption of Industry 4.0
After years of development in the domestic market, the manufacturing sector has witnessed the shift from three industrial revolutions to the fourth industrial revolution through significant technological developments. Moreover, Industry 4.0 plays a crucial role in advance the automation level and production capabilities in this whole new world.
The adoption of Industry 4.0 bringing together the different silos in the manufacturing sector through the network, enabling human-to-machine and machine-to-machine interactions of unparalleled speed with real-time data sharing. Therefore, this will lear the demand for inter-connected cyber and physical systems integrated with the central systems. It enables exceptional levels of automation and decentralized decision-making capabilities. Moreover, it creates opportunities for the entire manufacturing value chain through digitalization integration, which complies from the complete procurement of raw materials to the distribution of products/services. Thus, this is completely transforming how the world’s factories operate and function.
Extensive adoption of Industry 4.0 is probable to powers the manufacturers in many ways, such as –
- Health and safety of plant workers – By eliminating the need for human presence and intervention in specific high-risk tedious tasks and ecosystems, Industry 4.0 capabilities can assist manufacturers/producers in minimizing health hazards and reducing accidents on the factory floor.
- Cost reduction and efficiency – Integration of cyber-physical systems can real-time monitor the factory operations and processes to make decentralized decisions and allowing rapid processing. Considering, a connected factory enables automated self-diagnosis measures in the instance of errors and failures. Advanced technologies such as 3D printing, industry IoT, AI, ML, and laser technology are making better utilization of plant resources, thereby adding operational efficiencies. This primarily leads to cost savings, better productivity, and rapid time to market.
- Value addition – Digital manufacturing technologies, such as 3D printing, laser cutting, CNC-milling, and robotic assembly, allow the manufacturing of products in small batches, thereby allowing for better customization, quality, and value.
How India is prepared for Industry 4.0 adoption
Current status of Indian Industry 4.0 Ecosystem
Globally, the Industry 4.0 market is expected to reach INR 5,27,744 crore in 2019. Nations such as the US, the UK, Germany, Ireland, Sweden, China, and Japan are widely incorporating the Industry 4.0 capabilities in the domestic market.
In India, the 6th largest manufacturing hub, the manufacturing sector, revealed as an integral part of the country’s long-term expansion vision, as seen by the Indian government’s direct involvement in terms of investment and a strong focus on initiatives such as Make in India and MSME campaigns. The government intends to enlarge the GDP’s manufacturing share to 25% from the current 17% by 2022. Several initiatives and policy reforms, such as easing FDI policy and implementation of the GST (Goods and Services Tax), have been taken by the government to increase local market manufacturing capabilities and additional powers.
Given the task in hand, Industry 4.0 presents India’s excellent opportunity to realize its manufacturing motivations. Currently, India lags its global peers in Industry 4.0 adoption. A significant share of the Indian manufacturing sector is still in the post-electrification stage, using limited technology to the systems that function independently of each other. The integration of physical systems on cyber and cloud platforms, the basic premise of Industry 4.0, is still at its early development stages in the Indian market. Moreover, the Micro, Small & Medium Enterprises (MSME) section has very little access to technology due to the high-cost barrier and limited government support.
Recommendation for Industry Associations and Companies
Industry associations and companies could lead to Industry adoption in India
Overall, the widespread adoption of Industry 4.0 would require collaborative efforts of industry associations and companies. These associations can take initiatives, and high investment amounts to identifying technological developments, find infrastructure and political needs, assess the impact on sectors, and plan a workforce up-skilling road map. They can also invest in creating awareness about the benefits to the end-users following the Industry 4.0 strategies. It is expected that the Indian associations and companies could also work closely with the government to facilitate the rapid adoption of Industry 4.0 in India and expand its power in the global market.