Ninety-Nine Percent of Indian Manufacturers Investing in AI to Support Smart Manufacturing Initiatives

Nearly all Indian manufacturers have either invested in or plan to invest in artificial intelligence (AI) and machine learning (ML) over the next five years, according to the latest “State of Smart Manufacturing Report” released by Rockwell Automation. The report, now in its 10th year, provides insights from over 1,500 manufacturers in 17 leading industrial nations, including India.

The 2025 edition reveals how manufacturers are adopting technology to navigate global disruptions, improve operations, and support workforce development. In India, 99% of surveyed manufacturers are focused on AI/ML investments, with 81% motivated by the potential long-term business impact. Additionally, 94% of Indian firms report having a formal sustainability program, particularly in areas such as energy management and eco-friendly practices across product lifecycles.

Dilip Sawhney, Managing Director of Rockwell Automation India, said the report reflects how Indian manufacturers are adapting to global manufacturing shifts by integrating advanced technologies into their strategies.

The report notes that Indian companies are using 53% of the data they collect—above the global average of 44%—and are placing greater emphasis on skills like analytical thinking and teamwork to support a modern manufacturing workforce. While challenges such as infrastructure and data readiness remain, Indian companies are showing progress in aligning technology adoption with sustainability and performance goals.

Globally, the report found that 95% of manufacturers have invested or plan to invest in AI/ML, and 81% are accelerating digital transformation in response to external and internal pressures. Use of generative and causal AI has grown 12% year-over-year, and 49% of manufacturers aim to apply AI in cybersecurity by 2025.

Other findings highlight that 48% of manufacturers are adjusting workforce roles in response to smart manufacturing, while 50% plan to use AI/ML for quality control in the coming year. The report also notes a growing recognition of AI proficiency as a key skill, with nearly half of respondents now considering it essential—up from 10% in the previous year.

The report was developed by Rockwell Automation in partnership with Sapio Research and includes a wide range of perspectives across industries such as automotive, food and beverage, life sciences, semiconductors, energy, and more. Respondents included professionals from management to executive levels, from companies with annual revenues ranging between $100 million and $30 billion.

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