Indian industrial manufacturers are entering a decisive phase where artificial intelligence, ecosystem partnerships and product innovation will determine long-term competitiveness, according to PwC India’s latest report, Rewriting the Rules: The Next Chapter of Indian Industrial Manufacturing. The report says manufacturers must integrate emerging technologies into their core business strategies while strengthening innovation capabilities to capture new growth opportunities.
The study finds that 59% of Indian manufacturers believe AI will play the most important role in achieving their strategic goals over the next five years, ahead of the global average of 52%. Automation is also expected to accelerate across data analytics, customer interactions, quality assurance and production processes.
However, the report cautions that technology adoption alone will not create competitive advantage. While Indian manufacturers are investing in automation and customer-centric capabilities, only 16% are focused on product leadership and innovation, highlighting a disconnect between strategic priorities and investment decisions.
Vinod Kumar, Partner and Leader Manufacturing Sector, PwC India, said “Indian manufacturers have demonstrated strong ambition in adopting AI and automation. The next phase of growth, however, will depend on how effectively these technologies are integrated with product innovation, ecosystem partnerships and long-term business strategy. Companies that successfully combine these capabilities will be better positioned to compete in global value chains and capture emerging growth opportunities.”
The report also notes that 71% of Indian manufacturers plan to collaborate more closely with engineering, technology, automotive and logistics partners to accelerate innovation, access new markets and improve speed to market. South Asia is expected to emerge as one of the world’s fastest-growing manufacturing regions, intensifying competition for Indian companies.
