Industry 4.0 Revolution in Indian Manufacturing Industry

Over the last few years, the global manufacturing industry has had an ongoing revolution. The Industry 4.0 revolution is changing how organizations manufacture, improve, and distribute their products. Firms are actively integrating cloud computing, the Internet of Things (IoT), analytics, and other technologies in their production processes, thus increasing their overall efficiency as well as the quality of their products.

As per a survey, between 2011 and 2021, investments in startups that deal with Industry 4.0 technology have increased by 319%. Furthermore, in 2021, there were 132 acquisitions of companies that traded with the same.

Now, implementing the cutting-edge technology of Industry 4.0 can be expensive. Thus, international firms are in search of a market where they can sustainably outsource their manufacturing processes. In this regard, the Indian Manufacturing industry can be an ideal choice.

Forces that are driving Changes in the Manufacturing Industry

Here are some of the factors that are driving changes in the global manufacturing industry:

• Smart Factory

Smart Factory is a concept in which all the steps related to the manufacturing process are seamlessly connected to one another. The machinery and applications involved will have self-optimization features, enabling them to autonomously scale their operations depending upon the network environment and traffic volume.

An excellent example in this regard is Infineon’s Smart Factory in Dresden, Germany. It manufactures semiconductors, safety systems, shock absorbers, etc., using over 200 robots that assist its staff. This significantly improves the company’s overall efficiency, resulting in faster and more efficient manufacturing.

• Big Data

Big data is a collection of large and diverse data sets that are ever-increasing and consist of both structured and unstructured data. For companies, it acts as a source of valuable information, which enables them to make business-related decisions, enhance operational efficiency, identify and mitigate risks, and improve customer service.

• Internet of Things (IoT)

Internet of Things (IoT) is another prominent factor driving Industry 4.0. It is based on cloud computing platforms and helps connect everyday objects through embedded sensors. This will enable systems to collect and share data, leading to a more efficient manufacturing process.

• Cyber-Physical Systems

Cyber-Physical Systems (CPS) integrate networking, physical, and computation components. They are used for the seamless monitoring and control of physical systems, which can improve their safety, reliability, and overall performance.

• Interoperability

Interoperability refers to the ability of smart factories, cyber-physical systems, and human operators to communicate seamlessly via IoT. This facilitates the real-time availability of information, improves operational efficiency, reduces turnaround time, and boosts employee productivity.

India’s Ascendance as a Global Manufacturing Hub

According to a report, the Indian Manufacturing industry is predicted to expand at 4% CAGR from 2023 to 2028. Mentioned below are some reasons which contribute to India’s rise to a global manufacturing hub:

• Technological Integrations

Companies in the Indian Manufacturing sector are increasingly using artificial intelligence and analytics solutions for optimizing their operations. Furthermore, they are opting for process-driven and automated manufacturing processes to improve their overall efficiency.

• Upcoming Infrastructure

For the manufacturing sector’s development, the presence of ample infrastructure is a must. India has numerous upcoming industrial corridors like the Vizag-Chennai, Chennai-Bangalore, Delhi-Mumbai, etc. Furthermore, the country is looking to revitalize its SEZ zones to grow its exports.

• Government Schemes

The government’s Production-Linked Incentive Scheme and “Make in India” campaign provide a favorable environment for the manufacturing sector’s growth. Additionally, the Ministry of Micro, Small & Medium Industries allows individuals to register a business online for free.

Apart from this, low trade barriers, synchronization of product specifications, and special treatment for Indian goods lead to ease of exports. This makes India one of the most attractive destinations for outsourcing manufacturing processes.

Why is Revolution 4.0 Necessary for Manufacturing Facilities?

Industry 4.0 revolution can benefit the manufacturing sector in several ways:

• Enhanced Productivity

Machine learning algorithms and analytics can help automate tasks. This results in lower production time, consistent quality, and fewer chances of errors. Additionally, such solutions can run the manufacturing process 24/7, needing only a few human operators for their monitoring and maintenance. This helps enhance the overall productivity of manufacturing units.

• Long-Term Cost Savings

Industry 4.0 innovations can help companies drastically reduce their operating expenses. With the help of advanced manufacturing techniques and machine monitoring solutions, firms can predict and prevent downtimes, increase their throughput, and reduce production costs.

In the long run, this will lead to lower capital expenditure, thus facilitating savings.

• Improved Production Processes

Increased interoperability between systems will enable improved connectivity, data sharing, and analytics across the entire supply chain. This will lead to the development of enhanced production processes, which can facilitate innovations, optimization, and efficiency, thus benefiting the entire manufacturing sector.

• Hassle-free Data Recording and Traceability

With Revolution 4.0, companies can easily record large volumes of data on the cloud and use it for various purposes. They can employ it for developing new algorithms, training new recruits, taking business decisions, identifying risks, and more.

Furthermore, this can help facilitate improved record archiving and research capabilities.

How the Manufacturing Industry of India Can Benefit Foreign Companies?

These are some reasons why foreign companies can benefit from the Indian Manufacturing industry:

• Low Raw Material Costs

India has vast reserves of raw materials. This allows companies to manufacture a wide array of items. Also, due to their wide availability, they can procure such items at convenient rates, which helps lower production costs.

• Availability of Skilled Labor

In India, there is no dearth of skilled labor. Thus, foreign companies can employ them for a variety of manufacturing processes, that too at convenient prices. What’s more, they can hire individuals on a contractual basis. This will enable them to scale their operations as per their needs.

• Presence of Management Consulting Firms

There are numerous manufacturing business consultant firms that can help foreign businesses select the right vendors when setting up their business. Organizations like Tecnova provide India-based sourcing and vendor development services. It can enable clients to establish their operations in any part of India, thus reducing their time and resource deployment by over 60%.

Takeaway

Industry 4.0 is changing how companies manufacture products. It employs technological innovations, facilitating improved efficiency, consistent product quality, and cost savings. However, implementing such solutions can be costly. In this regard, outsourcing operations to the Indian Manufacturing industry can be an ideal choice. Here, the abundance of raw materials, cheap skilled labor, industry-friendly policies, etc., can help companies set up sustainable long-term operations.

Furthermore, there are management consulting firms like Tecnova that can help foreign organizations partner with vendors and source materials with ease.

Reference

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