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Transforming India’s Manufacturing Sector: The Rise of Smart and Digital Manufacturing

by | Jul 20, 2023

The manufacturing sector is experiencing a surge of innovation due to technology, and new-age technologies are infiltrating the manufacturing industry into rapid transformation hubs. New-age manufacturing is commonly referred to as smart manufacturing or Industry 4.0, is flexible, connected, and thrives on AI (artificial intelligence) and new-age technologies. Unlike traditional operations, smart manufacturing extends throughout the supply chains and the entire manufacturing value chain beyond the four walls of a factory.

Contract Manufacturing companies like Violin Technologies can pave the way for business firms and manufacturing partners to align with the digital manufacturing sector.

How Smart Manufacturing Transforms Indian Manufacturing Industry


Indian manufacturing recognizes that digital technology, digitally enabled factory, and smart factories can apply to all aspects of their business, including concept design, engineering, sourcing and procurement, supply chain management, logistics, warehousing, customer experience, strategic functions, human capital, and governance. Digitalizing operations can enhance efficiency, quality, safety, and transparency while reducing costs, timelines, and errors. However, manufacturers must effectively manage their digital operations to access these benefits.

According to a Gartner survey, 86% of manufacturing leaders believe smart manufacturing is crucial to their digital supply chain strategies, and 84% of leading manufacturers agree it will increase their competitiveness. Best Contract Manufacturing companies assist businesses in coping with the latest manufacturing trends.

To gain a competitive edge and compete in the global market of Industry 4.0, India’s digital manufacturing sector has to grow among small and medium-sized businesses. Post-COVID, using digital technologies to modernize industries is vital for creating quality jobs. With government incentives aligned with sector goals, digital manufacturing is the next big step for India’s IT leadership. It’s a chance for India to stand out internationally and steer Industry 4.0 into the future.

In our ever-evolving and connected world, disruptive technologies offer new opportunities. Traditional manufacturing practices must become digital enterprises to remain competitive and meet the evolving needs of their customers and stakeholders in Industry 4.0. A real-time, intuitive, automated, secure, and open digital transformation is crucial for survival in this highly competitive landscape. MSMEs (micro, small, and medium enterprises) play a vital role in driving Industry 4.0 and enabling the transformation of the Indian manufacturing sector to achieve the status of a global manufacturing hub.

The COVID pandemic has sped up the implementation of digital manufacturing in India and around the world. In India, digital adoption on the shop floor has surpassed its global counterparts in many aspects.
The manufacturing sector can benefit greatly from increased research and development funding, improving productivity and innovation-driven growth.

Smart and digital manufacturing

Challenges to adoption


Businesses now recognize the importance of overall equipment effectiveness by incorporating smart technology throughout the value chain for increased automation and successful manufacturing. Yet there are challenges to this adoption.

Manufacturing organizations face three main challenges today:

1. Shaping the Future of Manufacturing

Manufacturing organizations encounter various obstacles to economic growth, such as enhancing operations, managing conflicts, and dealing with climate change. It can be challenging for manufacturing processes to reach a consensus on a collective goal as it necessitates in-depth examination and coordination.

2. Ensuring that solution themes align with both revenue and cost goals.

Manufacturers have access to multiple digital solutions, but it is crucial to identify the ones that align with their business goals to achieve optimal performance.

To achieve digital transformation, manufacturers should prioritize six themes: creating a smart-product ecosystem, enhancing the digital customer experience, transforming the aftermarket and service sector, digitizing factory operations, establishing a digital supply chain, and connecting the workforce.

3. Maintaining steady, successful monetization efforts

By 2024, only half of the technology vendors and heavy asset manufacturers will have monetized their data, leading to pressure for revenue to maintain transformation programs.

Businesses that don’t use technology risk losing profits in the future. IoT (internet of things), AI/ML (machine learning), and cloud computing have revolutionized the industry, allowing real-time data collection, complex problem-solving, scalability, and cost-effectiveness. Combining these advanced technologies with big data analytics and RPAs can yield significant results.

Violin Technologies As New Age Manufacturing Partners


Violin Technologies, one of the best contract manufacturing company offers manufacturing and supply chain partnerships with key capabilities and manufacturing excellence such as Tool & Die Making, Casting, Extrusions, and PCB Assemblies. Additionally, their sourcing division acts as an extension of your global supply chain team. They assist with sourcing various commodities, identifying and qualifying suppliers, conducting supplier audits, managing purchasing and stocking, devising global logistics, and ensuring timely delivery of products.

Aparna Sushumna | Author

Aparna Sushumna

About the Author

Aparna Sushumna, a mother to a hyperactive toddler who is all over the house. I aspire to be a decent content developer. A Bachelorette of technology says my qualification but I anticipated being a singer. Thanks to the recession, I dwelled into various jobs, from coding to being a tech support executive to a help desk professional, only to conclude that there is something else I wish to do. Here I am to accomplish my profound passion for content writing. Music, nature, jewelry, beauty, mythology, life quotes, celebs, and their life, being my areas of interest.