India must accelerate AI, industrial automation to unlock manufacturing potential

INDIA must accelerate AI-led innovation, industrial automation, and the adoption of frontier technologies to fully realize its manufacturing ambitions, according to The Make-in-India Upgrade: Advanced Manufacturing Trends, a December 2025 chartbook by Ionic Wealth.
India stands at a critical juncture in its industrial journey, with advanced manufacturing emerging as a decisive lever for long-term economic competitiveness.
The report noted that failure to unlock advanced manufacturing could leave India with a manufacturing GDP gap by 2047 Viksit Bharat vision.
Under a business-as-usual scenario, manufacturing GDP would reach only US$2.3 trillion, far below the US$7.4 trillion potential, highlighting what the report calls a “significant gap” if decisive action is not taken At the core of the recommended strategy is AI-led innovation and productivity gains, combined with automation, digitization, and product and process innovation.
The report stated that AI-led innovation and productivity gains, along with industrial automation and adoption of frontier technologies, are the key enablers to foster India’s manufacturing progress.
Technologies can help Indian firms move up global value chains, reduce costs, and compete with manufacturing powerhouses.
India has already made progress on foundational reforms. The report noted advances made in labour code implementation, GST rationalization, easing of FDI norms, land reforms, and infrastructure modernization, including single-window digital clearances under PM Gati Shakti and the rollout of the National Logistics Policy.
Large investments such as Micron’s US$2.75 billion semiconductor assembly plant and Google’s combined US$25 billion commitment to digitization and AI-led data centres are cited as early indicators of momentum in the report. — ANI

gnlm

Subject-Image

  • India must accelerate AI, industrial automation to unlock manufacturing potential

Posted-Date