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India's Manufacturing Leap: How AI Can Power the Next Big Shift

Industry leaders are sounding the alarm that India's manufacturing sector is at a critical juncture. They argue that adopting artificial intelligence is no longer optional but essential for moving up the global value chain. A major focus is on the massive MSME base, which employs hundreds of millions and needs technological upgrades to compete. The call is for immediate policy action to support skilling, research, and making advanced AI tools accessible to smaller businesses.

AI adoption can make India's manufacturing take the next big leap, say industry leaders

New Delhi, December 15

Experts at the CII Smart Manufacturing Summit said India's industries are now entering a crucial phase where artificial intelligence (AI) must guide the country's next big leap in manufacturing. Speaking at the summit on Monday, industry leaders explained why AI-driven transformation can no longer wait, and India needs to strengthen its place in global manufacturing and move up the value chain.

Speaking to ANI at the sidelines of the event, C V Raman, Executive Committee Member and former CTO of Maruti Suzuki India Ltd, said the focus must stay on new technologies and on preparing workers for the changes ahead. He said the conference showed how important it is to "re-skill our engineers and the ITIs and also upskill them for the new age technologies." He added that government programmes, highlighted at the summit, are aimed at helping industry build this shift through clusters and shared efforts.

Raman said India is still low in the global value chain and must now work on areas like sustainability, net-zero technologies and scaling new solutions. He said the challenge is large, but industry and government are already working together and need to shape policies that support skill development, research and a strong manufacturing ecosystem.

Tejpreet Singh Chopra, CEO of Bharat Light & Power Ltd, told ANI that the size of India's manufacturing base makes the transition even more urgent. He said India has "60 million MSMEs... they employ about 230 million people," and improving their manufacturing systems is key to making the country globally competitive. He explained that India must build people skills, IT systems and OT infrastructure together to make a "dramatic shift" in how factories operate.

Chopra said that the government has started multiple missions to support this change, including skilling and training programmes. But he added that India needs a clear and fast AI plan because "there's an AI arms war going on out there" and MSMEs must not be left behind. He said AI has to be used across industries like manufacturing, energy, aviation and oil and gas, and the need is immediate.

He suggested that policy support should help bring high-end AI tools to millions of small units, possibly through incentives or subsidies. He also said that success stories should be shared widely so companies can learn from each other and understand what works at scale.

Chopra pointed to several challenges that India must solve, starting with the difficulty of connecting machines that do not share data. He said linking the physical world to the digital world is the first big step, followed by using AI and generative AI to turn data into useful intelligence.

— ANI

Reader Comments

Priya S

Completely agree with Mr. Chopra. The "AI arms war" is real. If our small factories don't adopt smart tech, we'll just remain a low-cost assembly hub. We need to move up and make high-value products. Hope the policies actually reach the ground level.

Rohit P

Skilling is the biggest challenge. My cousin works in a small auto parts unit in Pune. The owner bought a new CNC machine but nobody knows how to program it optimally. Reskilling our existing workforce is more important than just buying new tech.

Sarah B

Working with Indian suppliers, I see the data connectivity issue every day. Machines from different eras that don't talk to each other. A national standard or subsidy for retrofitting old equipment with IoT sensors would be a game-changer for integration.

Karthik V

While the vision is good, I'm skeptical. We've heard "next big leap" for decades. Implementation is always slow. Will incentives really reach the small unit in Tier-3 city, or get stuck in red tape? Need transparent, fast-track channels.

Meera T

Sustainability and net-zero should be at the heart of this AI transformation. We can't just copy the old polluting models of the West. Let's build smart, green factories from the start. This is our chance to lead responsibly. 🌱

D

Reader Voices

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