A significant transformation is underway in the Indian manufacturing sector, with nearly all manufacturers embracing artificial intelligence (AI) and machine learning (ML) technologies. According to a recent survey by Rockwell Automation, an astonishing 99 percent of firms in India have either already invested in AI/ML or have concrete plans to do so. This marks a substantial increase from previous years; a similar survey two years ago found that about two-thirds of organizations had invested or planned to invest, and this figure rose to over 90 percent in last year's survey. Dilip Sawhney, Rockwell Automation India Managing Director, highlighted this shift, stating, 'About a decade plus ago in a market like India, people were still very curious about what industry 4.0 and smart manufacturing. Now they are completely consumed with what these technologies can do for their business.'

The findings are part of Rockwell Automation's 10th annual 'State of Smart Manufacturing Report,' released in March 2025. This global study encompassed over 1,500 manufacturers from 17 leading manufacturing nations, with India contributing 5 percent of the total sample size. The Indian respondents were diverse, comprising 23 percent manufacturers, 36 percent original equipment manufacturers (OEMs), 28 percent system integrators (SIs), and 13 percent from engineering procurement companies (EPCs).

The primary motivation for this widespread technology adoption among Indian manufacturers is the pursuit of long-term business impact, cited by 81 percent of respondents. Alongside these strategic investments, manufacturers also identify significant risks, with cybersecurity ranking as the second biggest external challenge. In response, a remarkable 97 percent of organizations in India stated they have either invested or plan to invest in cybersecurity solutions and platforms.

The role of AI in bolstering cybersecurity is also set to expand. The survey indicates that the proportion of manufacturers planning to use AI for cybersecurity is expected to climb from 40 percent in 2024 to 49 percent in 2025. This reflects a growing awareness of the need for advanced tools to combat increasingly sophisticated cyber threats in the evolving smart manufacturing landscape.

Sustainability has also emerged as a key focus for Indian manufacturers. The survey revealed that 94 percent of participating companies in India report having some form of formal sustainability program in place. Mr. Sawhney commented on this finding, noting, 'What really also came out was India, surprisingly, and that also indicates the maturity of the players in the Indian manufacturing sector about sustainability.'

The integration of smart manufacturing technologies is also prompting changes in the workforce. The report found that 48 percent of manufacturers plan to repurpose existing workers or hire additional staff as a result of their investments in smart manufacturing. Furthermore, 41 percent are leveraging AI and automation to help bridge skills gaps and address labor shortages, indicating a strategic approach to workforce development in the age of Industry 4.0.