A recent study by PwC India highlights a strong belief among Indian industrial manufacturers in the transformative power of artificial intelligence (AI) for future expansion and growth. The report, titled ‘Rewriting the rules: The next chapter of Indian industrial manufacturing,’ surveyed entities with revenues ranging from $50 million to over $25 billion.
AI as a Strategic Growth Driver
The study found that a notable 59% of Indian industrial manufacturers expect AI to play a significant role in achieving their strategic goals within the next five years. This figure surpasses their global peers, with only 52% of manufacturers worldwide sharing the same ambition. This increased ambition signals a pivotal shift in how Indian businesses view technological enablement.
Accelerating Automation Across the Value Chain
Indian manufacturers are also poised to accelerate automation across their entire value chain over the coming half-decade. Data capture and analytics lead the charge, with 82% of manufacturers focusing on this area, followed by quality assurance (69%), planning and forecasting (65%), and customer interactions (63%).
Vinod Kumar, Partner and Leader, Manufacturing Sector, PwC India, emphasized the critical juncture for the sector. “The opportunity is no longer simply about expanding production capacity; it is about building intelligent enterprises that use AI, automation, and data-driven decision-making to create sustainable competitive advantage,” Kumar stated. He added that success will hinge on aligning technology investments with business strategy, workforce transformation, and ecosystem collaboration.
Shifting Priorities in Investment and R&D
The report indicates that by 2030, the proportion of manufacturers with highly automated physical production processes is expected to more than double compared to 2025. While Indian and Chinese manufacturers share similar automation ambitions, their priorities diverge. Indian companies are channeling automation towards customer-facing interactions and reducing friction, whereas Chinese manufacturers prioritize efficiency gains in procurement and shop-floor operations.
Furthermore, 57% of Indian industrial manufacturers identify product design and development as the area likely to see the largest percentage increase in investment over the next five years. However, a comparatively lower 45% of Indian executives view investment in R&D as a strategic growth action to capture new opportunities, contrasting with 63% in China and 42% globally. Similarly, only 39% of Indian executives consider R&D, product development, and product management among the top three capabilities for amplifying financial performance, compared to a significant 76% in China.