Concepts such as Industry 4.0 and Smart Factory, which interconnect the shop-floor ecosystem through emerging technologies, are now a reality. (Bloomberg image)

After Modi’s flagship campaign ‘Digital India’ became prominently visible on the payments system, the manufacturing firms of India are now on a way to become digital. The manufacturing companies are planning to make the most of their investment in big data and predictive analytics in the coming years. 66 per cent of the manufacturing firms voted for big data and predictive analytics as their top investment priority in the next 1-2 years. Second on their priority is the investment on Industrial Internet of Things, sensors, cloud or integrated platforms, and robotic process automation. However, only 23 per cent of the manufacturing companies have a clear digital strategy so far.

Among the major factors that are driving digital manufacturing in India include predictive maintenance; connected supply chain; reduced energy consumption; production optimisation; lower price of sensors; and high computing needs.

“Concepts such as Industry 4.0 and Smart Factory, which interconnect the shop-floor ecosystem through emerging technologies, are now a reality. Digitisation continues to transform manufacturing processes around the world leveraging technologies such as IIoT, artificial intelligence, advanced robotics, etc,” said Ashish Nanda, EY India Supply Chain Leader.

Also Read: Income Tax refund: Paid tax under dispute? Here’s how you can get it back in Vivad se Vishwas

However, the adoption of digital technologies in India is still in its infancy, considering that manufacturers have started using these technological advancements recently and with limited scope, he added. It is perhaps essential for manufacturing firms to first understand and then embark on this digital transformational journey to remain competitive and attain world-class status, he further added.

Meanwhile, India’s manufacturing sector only accounts for 16 per cent of the country’s GDP as compared to 29 per cent in China, 21 per cent in Germany, 28 cent in South Korea, and 20 per cent in Indonesia. However, to raise the contribution of manufacturing in India’s GDP, the government has launched flagship schemes such as Make in India, Skill India and Startup India, and has also set an ambitious target of increasing the contribution of the manufacturing sector to 25 per cent of GDP by 2022.