Industry 4.0 refers to “smart” and connected production systems that are designed to sense, predict, and interact with physical world.

Key Highlights of Report

• Industry 4.0 adoption in India: Automotive, electronics, and pharmaceuticals are frontrunners. In contrast, textiles, metals & mining face significant barriers.
• Key Drivers of Industry 4.0 in India
  • Workforce Up-skilling, Digital Infrastructure, Sustainability (To meet global consumer and regulatory expectations for green manufacturing).
• Barriers to Adoption 
  • Awareness: Many MSMEs lack understanding of Industry 4.0's benefits versus costs.
  • Technological Barriers:
    • Legacy Systems: Difficult to integrate with modern tech.
    • Data Integration: Challenges in handling big data across systems.
    • Cyber-security Risks: Increased digital exposure brings higher risks.
  • Financial Constraints: High initial investment and ongoing costs, limited access to funding.
  • Human Resource Issues: Shortage of skilled workers and cultural resistance to new methods.
• Way forward: 
  • Harnessing Global Value Chains (GVCs) present immense opportunities for MSMEs to access global markets and enhance competitiveness. 
  • Develop comprehensive digital strategies and phased implementation roadmaps.
  • Other focus areas: Prioritize key technologies such as AI and automation, invest in workforce up-skilling etc.