Smart Factories and Automation in India – How IoT and AI are driving efficiency in Indian Manufacturing – Express Computer

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Express Computer – Digital Magazine, Latest Computer Magazine, India
By Sudhanshu Mittal, Head & Director, Technical Solutions, Meity Nasscom CoE
The Indian manufacturing sector stands at critical crossroad as it undergoes a technological revolution by adopting the IoT (Internet of Things) and AI (Artificial Intelligence). As global competition intensifies and consumer demands shift towards customisation and efficiency, Indian manufacturing still grapples with inefficiencies, high production costs, and inconsistent quality standards. Many factories continue to rely on manual processes, outdated machinery, and fragmented supply chains, leading to lower productivity, increased waste, and supply chain bottlenecks.
These challenges highlight the necessity of digitisation and automation, which Indian manufacturers need to embrace to unlock higher productivity, cost savings, and global competitiveness while ensuring sustainability and resilience in the face of economic disruptions.
As we search for different kind of IoT & AI based solutions available in the market, we find that there is lot of information available about how different kind of solutions impact the factory production. Some of the examples are given here:
Several leading Indian manufacturing players have already started adoption of IoT & AI in their operations and are experiencing the benefits in the form of enhance efficiency, reduce costs, and improve quality. The adoption of IoT enabled sensors on critical machinery to track performance in real time, use of AI driven predictive algorithms to analyse the collected sensor data and deployment of AI based vision system for defect detection have led to as much as 20% reduction in unexpected machine breakdown, 15% increase in production efficiency and reduction of defect rates by as much as 25% in automotive company. Similarly, integration of solutions like AI powered robotic arms for precision assembly and reduction of human errors, installation of IoT based sensors across plant for energy consumption monitoring and production scheduling optimisation and AI driven demand forecasting have led to 10% increase in production without any additional cost, 30% reduction in energy consumption and inventory cost reduction due to improved forecasting.
Such case studies highlight how IoT and AI are transforming Indian manufacturing, enhancing efficiency, reducing waste, and improving overall competitiveness.
While the technology adoption is able to generate production efficiency improvements and impact the bottom line, there are also challenges especially for SME players. Some of the challenges are listed below:
Indian manufacturing industry needs to go for IoT & AI adoption if it wants to stay relevant. While there are challenges with technology adoption, those can be addressed. It has been seen clearly that technology adoption provides clear benefits to the bottom line, however internal change management is needed. Governments across country are providing different kind of support towards digital technology adoption. Manufacturing players have the opportunity to work with industry associations like Nasscom and use their expertise to start their digital technology adoption journey.
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Express Computer is one of India’s most respected IT media brands and has been in publication for 24 years running. We cover enterprise technology in all its flavours, including processors, storage, networking, wireless, business applications, cloud computing, analytics, green initiatives and anything that can help companies make the most of their ICT investments. Additionally, we also report on the fast emerging realm of eGovernance in India.
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Express Computer is one of India’s most respected IT media brands and has been in publication for 33 years running. We cover enterprise technology in all its flavours, including processors, storage, networking, wireless, business applications, cloud computing, analytics, green initiatives and anything that can help companies make the most of their ICT investments. Additionally, we also report on the fast emerging realm of eGovernance in India.
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