Indian manufacturers are no longer testing digital transformation—they are scaling it. This is as per a new report by Rockwell Automation.

 

Thf new India findings are from the global industrial automation giant's 11th annual State of Smart Manufacturing Report, a global study spanning more than 1,500 manufacturers across 17 leading manufacturing nations, including India.

 

The 2026 findings point to a clear shift. Artificial intelligence, automation, and connected industrial systems are now central to how companies are managing uncertainty, strengthening resilience, and sharpening global competitiveness.

 

The signal from India is especially strong. A striking 97% of manufacturers say digital transformation is essential to staying competitive, underscoring near-total consensus across the sector. Investment patterns back that urgency: India now has nearly 1.6x more high-budget spenders allocating 51–99% of operating budgets to industrial technology compared with global peers.

 

Dilip Sawhney, Managing Director, Rockwell Automation India, said: “The 2026 findings confirm that India is not only keeping pace with global smart manufacturing - it is often leading it. Indian manufacturers are rapidly deploying AI, automation, and digital technologies to address quality, supply chain resilience, workforce shortages, and data utilization at scale. 

 

"This firmly positions India as a future-ready manufacturing powerhouse, with strong momentum to build globally competitive, technology-driven industrial capabilities.”

 

AI adoption is already deeply embedded on the factory floor. According to the report, 88% of Indian manufacturers are already using AI/ML in operations, with 41% of operations currently AI-augmented. That figure is projected to climb to 47% by 2027 and 61% by 2030.

 

But the transformation is not without friction. Data remains the biggest bottleneck, with 60% of respondents citing challenges in capturing, interpreting, and using data effectively—well above the global average of 37%.

 

At the same time, workforce evolution is moving in step with technology. More than half (52%) of manufacturers say they are using technology to create more engaging jobs, 48% are deploying AI/ML learning tools to address labor gaps, and 81% now consider AI skills “very or extremely important” in hiring.

 

The report draws on over a decade of global research into industrial modernization, highlighting how intelligence, adaptability, resilience, and workforce transformation are reshaping manufacturing at scale.

 

The 2026 State of Smart Manufacturing Report is based on feedback from 1,560 respondents across 17 major manufacturing countries, covering industries from automotive and energy to food & beverage, semiconductor, and life sciences, with company revenues ranging from $100 million to over $30 billion.