AI Transforming Manufacturing Landscape in India

• AI is transforming manufacturing by integrating into every layer of production, increasing output, reducing waste, adapting to shifting demands, and designing more intelligently.

• The global AI-in-manufacturing market is projected to grow from $4.1 billion in 2024 to $5.8 billion in 2025, and surpass $25 billion by 2029.

• In India, AI use across industries stood at 48% in FY2024, with manufacturing alone rising from 8% to 22% in just one year.

• AI and GenAI are turning manufacturing industries into self-optimising systems, leveraging real-time data to drive smarter decisions, higher throughput, and more sustainable, customer-centric outcomes.

• AI is powering improvements across every layer of the factory, including predictive maintenance, AI vision systems, cobots, digital twins, and generative AI.

• AI accelerates product development, enhances forecasting and enables more agile scheduling, and creates value at two levels: operational hygiene and innovation.

• Challenges persist, including integration costs, talent shortages, and concerns over data governance and model transparency.

• Despite these challenges, AI is central to India’s ambition of becoming a $5 trillion economy.