As India sets the target of becoming a trillion-dollar economy, its manufacturing sector, a key driver of the national economy, is on a transformative path. In the post-pandemic world, the manufacturing sector powered by digital technologies and supported by governmental initiatives is set to boost productivity, drive innovation, and strengthen global competitiveness. The technological wave impacting every aspect of the manufacturing sector has positioned India as a “China plus one” for the rest of the world.
Diverse Landscape of Indian Manufacturing
The Indian manufacturing landscape is diverse and can be broadly categorized into three segments based on the origin, global presence, and technology adoption practices of companies. Here are the three categories:
International Manufacturers Operating in India
The international companies that have established their manufacturing units in India follow advanced technology practices aligned with their country of origin. As a result, they often lead in automation, technology adoption, quality control, and process efficiency. These companies have access to cutting-edge technologies and R&D. The strategic decision-making is carried out by the parent organizations, and the companies have limited flexibility to tailor operations to local market needs.
Indian Manufacturers with Global Presence
These are the Indian manufacturing companies that have an extensive international footprint. They have operations and sales in multiple countries and compete with global industry giants. These companies are agile and proactive in adopting new technologies to stay competitive. There is a strong focus on R&D and technology-led growth that can help them adapt to changing market conditions.
Domestic-Focused Indian Manufacturers
These manufacturers are primarily focused on serving the domestic market. They have a deep understanding of local market conditions and consumer preferences. They prioritize cost-effective solutions over cutting-edge technologies. As a result, they are moderate to slow in adopting new technologies. The slower pace of technology adoption can limit growth and competitiveness. Technology adoption and innovation often depend upon the vision and drive of the leadership.
The Role of Technology in Manufacturing
In the Indian manufacturing sector, technology plays a critical role and can be divided into:
- Information Technology (IT), which is used for commercial activities, administrative tasks, and support functions such as data management, communication, Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Supply Chain Management (SCM), etc.
- Operational Technology (OT), which is used in manufacturing processes, includes machinery, industrial control systems (ICS), and supervisory control and data acquisition (SCADA) systems.
Though IT has been extensively adopted across various industries, OT is evolving with the rise of new technologies such as IoT, AI, and machine learning that are bringing a revolution in the manufacturing sector.
Consequently, adoption of cutting-edge technologies such as IoT, AI, Cloud Computing, Edge Computing, and 5G is essential for overcoming infrastructural challenges, particularly in remote locations, in the manufacturing industry. These technologies can be used for predictive maintenance, quality control, real-time monitoring and control of manufacturing processes, etc improving operational efficiencies and competitiveness.
Strategic Challenges: Digital Transformation of Manufacturing
Though technology is increasingly becoming vital to the manufacturing sector in India, several challenges need to be overcome when implementing manufacturing solutions across diverse operational environments. Key challenges include:
- Infrastructure Readiness– The manufacturing facilities need to be equipped to support cutting-edge technologies and solutions.
- Upskilling Workforce– The workforce needs to be suitably trained and upskilled so that they can manage and operate the advanced technologies effectively.
- Ensuring Cybersecurity– With the rise of technology use and greater connectivity, the risk of cyber attacks also increases.
- Change Management – Integrating new technologies with existing systems without disrupting operations can be challenging and expensive. At the same time, managing the human side of change to facilitate tech adoption can face resistance.
“Scaling up connected manufacturing solutions across diverse operational environments poses strategic challenges, particularly in advancing OT technologies, which require meticulous planning and execution. While OT adoption is a complex and skilful process, it presents an opportunity to enhance operational efficiency by understanding end-to-end processes, providing in-depth training, and integrating the workforce effectively to manage the human aspect of change.”- Milind Khamkar, Group – CIO, SuperMax
Enhancing Operational Efficiency Through Connectivity
Adopting cutting-edge wireless technologies such as WiFi 6 and WiFi 7 is revolutionizing the manufacturing sector. These technologies are capable of significantly enhancing operational efficiency by providing robust and reliable network coverage throughout the manufacturing facilities. By offering comprehensive network coverage across large industrial spaces, these technologies allow for greater flexibility in operations and movement. Wireless technologies do not have the constraints of physical cabling and can be scaled to meet growing operational needs and prepare the industry for future advancements. Better connectivity also enhances communication and collaboration among the workforce, improving productivity.
Looking Ahead: Future of Manufacturing
The manufacturing industry in India is poised to transform fueled by cutting-edge technologies such as Edge Computing, 5G, IoT, and AI . By proactively adopting these technologies and preparing the industry for the changes associated with technology integration, the manufacturers can align themselves with the evolving demands of the global market. Embracing these advanced technologies the manufacturing sector can contribute to India’s ambitious economic goals and position the country as a leader in global manufacturing.
