3. Food and Beverage
The F&B sector is increasingly
automating its packaging, sorting,
and storage processes. IoT sensors
monitor temperature and humidity
during transport, ensuring food
safety and reducing wastage.
Amul, Nestlé India, and PepsiCo
have adopted high-speed automa-
tion lines for bottling and packag-
ing.
4. Textiles
Despite being labor-intensive, the
Indian textile sector is automating
dyeing, cutting, and quality inspec-
tion to meet fast fashion demands
and export quality norms. Compa-
nies like Raymond and Arvind
Mills are leading this change.
5. Electronics Manufacturing
Driven by the “Make in India”
thrust for electronics and semicon-
ductors, automation in PCB assem-
bly, chip packaging, and testing is
growing rapidly.
Firms like Foxconn India and
Dixon Technologies are ramping up
their automated lines for smart-
phone and consumer electronics
manufacturing.
Opportunities Created by Indus-
trial Automation in India
1. Boost to GDP and Industrial
Output
With automation improving produc-
tivity,
quality,
and
scalability,
India's goal of increasing the manu-
facturing share of GDP to 25% by
2025 becomes more achievable.
2.
Upskilling
and
New
Job
Creation
While routine jobs may decline,
automation is giving rise to new
roles in:
• Robotics programming
• Automation system design
• AI and ML engineering
• IoT and data analytics
Skill development programs by
NSDC, Skill India, and industry
players are addressing this need.
3. SME and MSME Empower-
ment
Affordable automation solutions,
especially low-cost cobots and
open-source PLCs, are enabling
MSMEs to compete with larger
players. Indian startups are now
building plug-and-play automation
kits tailored for SMEs.
4. Innovation and Startups
India’s
startup
ecosystem
is
responding
with
solutions
in
AI-driven vision systems, autono-
mous drones, smart sensors, and
predictive analytics platforms.
Companies
like
GrayMatter
Robotics, Grene Robotics, and
Unbox
Robotics
are
making
automation more accessible and
intelligent.
5. Sustainability and Efficiency
Automation leads to better resource
utilization from water and electrici-
ty to raw materials. Smart energy
management systems in automated
plants are significantly reducing
carbon footprints.
6. Global Investment and Export
Growth
With global manufacturers seeking
China alternatives, India’s automat-
ed factories are attracting FDI in
electronics, defense, and electric
vehicles. Automation also enhances
India’s potential as an export hub
for high-quality industrial goods.
Challenges to Address
1. High Initial Investment
Many MSMEs find automation
unaffordable due to high upfront
costs and long payback periods.
Financing models like “automa-
tion-as-a-service”
are
still
in
nascent stages.
2. Workforce Resistance and Skill
Gap
There’s apprehension among tradi-
tional workers about job losses.
Moreover, a shortage of skilled
automation engineers and techni-
cians hampers adoption.
3. Fragmented Supply Chain and
Legacy Systems
Integrating automation with legacy
equipment or fragmented supply
chains remains a technical and oper-
ational challenge, especially in
traditional sectors like textiles or
leather.
4. Cybersecurity Risks
Automated and connected systems
are vulnerable to cyberattacks.
Indian industries need to invest in
robust
cyber-physical
security
frameworks.
The Way Forward
India’s march toward industrial
automation must be inclusive, inno-
vative, and intentional.
Policy Recommendations:
•
Incentivize
automation
for
MSMEs through tax breaks and
subsidies
•
Strengthen
industry-academia
collaboration for skill development
• Create regulatory sandboxes to
test automation innovations safely
• Expand public-private partner-
ships for building digital infrastruc-
ture
Industry Actions:
• Adopt phased automation to
balance investment and ROI
• Invest in retraining and upskilling
workers, not just machines
• Leverage cloud and open-source
platforms for affordable automation
Societal Impact:
Industrial
automation
must
ultimately improve human produc-
tivity and workplace safety not just
profits. With the right safeguards,
automation can empower rather
than displace.
Looking Ahead: Vision 2040
By 2040, India envisions itself as a
global manufacturing powerhouse
not by mimicking the past, but by
I F
NDUSTRY OCUS
53 | June 2025 | www.industrialoutlook.in