Digital Manufacturing and the Future of Industry 4.0 in India

Industry 4.0—or the Fourth Industrial Revolution—is the automation and data exchange in manufacturing technologies by creating a “smart factory” with an integrated system with advanced digital technologies. They are based on cyber-physical systems, the Internet of Things (IoT), cloud computing, and artificial intelligence (AI), which work together to create smart factories. Now, in the backdrop of Industry 4.0 fast overtaking India with these kinds of technologies, it becomes expedient to evaluate both its current relevance and how the future will be regarding job generation as well as displacement.

The Continued Relevance of Industry 4.0 in India & Challenges in Adapting

Industry 4.0 in India still matters a lot because India remains an aspirational manufacturing country, and it wants to join the big league of nations with a robust share of GDP from industrial production. In November last year, the Indian government announced that it would like manufacturing to have a 25% share of the GDP by 2025. This target can be achieved by adopting Industry 4.0 in manufacturing, which can significantly enhance productivity, improve product quality, and reduce operational costs, making Indian products more competitive globally.

The COVID-19 pandemic has also been an important reason for adopting digital manufacturing technologies. To ensure smooth functioning and safeguard against future disruptions, many companies are opting for automation, IOT, and AI. This highlights the growing need for Industry 4.0 in India’s manufacturing landscape.

There has been investment in the manufacturing sector because of the Industry 4.0 in India. organisations are joining in with automation in India’s manufacturing sector. While it is easier for new organisations to adapt to the automation of the factories, it is a bit challenging for existing organisations to adapt to the innovative manufacturing of their products. This is because they already have a process and existing setup, which is stuck and can’t be disturbed. Hence, it has become challenging for existing companies to upgrade their processes.

Job Creation Opportunities

One of the key benefits of Industry 4.0 in manufacturing is its potential to generate new job opportunities. As businesses adopt these advanced technologies, there is an increasing demand for skilled professionals to design, implement, and maintain them. According to the National Association of Software and Service Companies (NASSCOM), the ongoing adoption of advanced manufacturing technologies could lead to millions of new jobs in India by 2025.

Emergence of New Roles and Skills

Industry 4.0 in India has sparked demand for new positions such as data scientists, AI engineers, IoT specialists, and cybersecurity experts as the demand for skilled professional is high with the automation coming in.  These roles require specialized technical knowledge and expertise, presenting new opportunities for professionals with relevant skills. Additionally, the need for workers who can operate and manage digital manufacturing systems creates roles in robotics and automation.

Upskilling and Reskilling of the Workforce

Upskilling and reskilling are critical to supporting the demands of this digital transformation. As the employees who are already working, they have to adapt to the new technology and automation and have to upskill themselves to equip with the change. Hence, R&D is going on in various organisations so that the employees can get equipped without any disturbance in the ongoing work. The government has also taken initiatives like the Skill India Mission, which aims to equip workers with the skills to thrive in the new industrial landscape. Through training programs and partnerships with educational institutions, efforts are being made to close the skill gap and prepare workers for the challenges of advanced manufacturing technologies.

Boosting Employment in MSMEs

Micro, small, and medium enterprises (MSMEs) play a pivotal role in India’s economy, contributing to both employment and GDP. By adopting Industry 4.0 in manufacturing, MSMEs can enhance their competitiveness, expand operations, and create more jobs. These technologies allow MSMEs to optimize production processes, reduce costs, and access new markets, driving employment growth.