Industry 4.0 through Make in India

The world over, the new buzz word - ‘Industry 4.0’ is quickly picking up strength. This new, disruptive technology has recently gained momentum in the manufacturing ecosystem. It has changed and reshaped the way things are seen in the manufacturing segment, which includes the automotive sector. The need to understand and adopt the advanced manufacturing techniques is the need of the hour. Industry 4.0 is viewed as a collection of Information & developments for the segments like Big data, Cloud computing, Internet of things, Simulation, Autonomous robots, augmented reality, Cybersecurity, System integration, and Additive manufacturing.

The government of India's drive through the "Make in India" concept has generated substantial interest and the spotlight is now on the manufacturing domain. Likewise, with the implementation of FDI and GST programmes (100 percent Foreign Direct venture is permitted under the programmed course in the auto segment), there will be a huge impact on the Indian manufacturing sector, which Includes advanced materials, advanced robotics and 3D printing, among others.

Sowing the seeds for Advanced Manufacturing in India
Make in India through smart manufacturing will have huge implications in the market. If we look at the Manufacturing Infrastructure, with the new foreign investment, Indian manufacturing will need to compete with global standards for maintaining its competitive advantage. For technology provision; new service models, technological capabilities, dynamic supply chain networks – will come to define manufacturing processes in India. Regarding skilled manpower development; the fast-growing adoption of Additive manufacturing is helping to reduce lead times and support new product innovation in India.
If we look at the insights behind the initiative of Make in India, it will help to:

  • Upsurge FDI in manufacturing
  • Develop job opportunities
  • Increase Infrastructure
  • Encourage “technological evolution like Industry 4.0
  • Reduce reliance on imports

If we look at the statistics from RBI, the campaigns like Make in India have shown significant growth of the economy.

Future Potential of Indian Manufacturing


Import and export ratio of the manufactured goods

3 Imports
2 Exports

5 Imports
4 Exports

Global Manufacturing Output in %

Less than 2%

More than 4%
Expected GDP contribution by Manufacturing Sector

Less than 15 %

25 %

The key factors involved in the growth are:

Growth in the demand for basic metals, automotive components, electronics, aerospace and defence products.

Large-scale Foreign direct investment to build, upgrade and optimize production methods through the industry 4.0 concept.

The Make in India campaign started in 2015 has increased the ease of doing business in India. If we look at the data from the World Bank ease of business report 2016, the data shows a significant change. The focus areas like Advanced manufacturing, Skill India, Digital India, and Start-up India were taken into consideration.

Before Make in India Campaign
After Make in India Campaign
World Bank Ease of Doing Business Ranking: 134 in 2015
Jumps 4 places in the ranking to 130 for 2016
Global Competitiveness Ranking (2014-15): 71
Global Competitiveness Ranking (2015-16): 55
Required: Paid-up capital of INR 100,000 ($1,629) to start a limited liability company
No paid up capital required
Time taken to start a business: 34 days
Time taken to start a business: 29 days
Time taken for getting electricity: 105.7 days
Time taken for getting electricity: 90.1 days

By 2020, India is most likely to convert itself into a significant manufacturing hub and the third largest market for automobiles in the world, contributing approximately 25 percent of the GDP. With this vision, the massive development in the Indian automotive segment is helping the nation to prepare for the period of "Industrial Revolution 4.0". Where the development drivers of Industry 4.0 will be incorporated in the manufacturing processes to capitalise on the opportunity presented to Indian automotive market.

Moreover, the Indian Institute of Science (IISc) is building India's first ‘Smart Factory’ in Bengaluru with a seed financing from the Boeing Company. Bosch, a German auto segment producer, will begin usage of smart assembling at its 15 unique centres in India by 2018. GE (General Electric) has put USD 200 million in the facility which is a multi-modal Smart Factory in India, where supply chains, circulation systems, and adjusting units are digitally interlinked to create an overall smart environment.

Our world is constantly evolving, the internet of things and services have helped to expedite innovation faster than ever before. What seemed like a distinct future some years ago is today's reality due to digital interconnections in what we are about to face, the fourth industrial revolution. India is a very important manufacturing hub and Industry 4.0 is what will help us stay ahead of the competition.


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