Next five years critical for India to lead shift toward smart manufacturing: MSDE Secretary

New Delhi [India], December 15 (ANI): India's competitiveness in advanced manufacturing will depend on how effectively its MSME clusters transition to advanced and digitally driven production models. As the servification of manufacturing, where products are integrated with advanced services and digital technologies, India's strong IT capabilities offer a natural and strategic advantage, Debashree Mukherjee, Secretary, Ministry of Skill Development and Entrepreneurship (MSDE), Government of India, highlighted this at the CII Smart Manufacturing Summit 2025, themed 'Frontier Technologies: Driving Competitiveness and Powering Growth', held on held on Monday here in the national capital.

Mukherjee underscored the critical importance of building a future-ready workforce to enable this transition.
She highlighted the PM SETU scheme, which carries a Rs 60,000-crore commitment over the next five years to establish an industry-led, industry-owned skilling architecture through the Hub-and-Spoke model, upgraded ITI clusters, world-class Centres of Excellence, and an expanded apprenticeship ecosystem.
"We are creating the skilled talent that industry needs. With hyperlocal district-level planning and AI-driven skill mapping, we aim to ensure that every enterprise can access the right people at the right time. The opportunity is now--the next five years are critical for India to lead the shift toward smart manufacturing," she added.
Addressing the Summit, Dilip Sawhney, Chairman, CII National Committee on Smart Manufacturing and Managing Director, Rockwell Automation India Pvt Ltd, noted that technologies such as CAD/CAM, 3D printing, smart sensors, RFID, blockchain, GenAI, and machine vision are transforming design, production, quality, and safety across sectors, from textiles to electronics, accelerating India's journey toward smarter and more competitive manufacturing.
Ravi Raghavan, Co-Chairman, CII National Committee on Capital Goods and Engineering, and Managing Director and CEO, Bharat Fritz Werner Ltd, stressed that Industry 4.0 is not limited to large enterprises.
"Mid-sized companies can often see faster impact with small, scalable digital steps. True transformation occurs when technology works alongside skilled people. As factories become smarter, human capability becomes even more critical, making skill development a central pillar of India's manufacturing competitiveness," he said.
CV Raman, Member of the Executive Committee and former Chief Technology Officer, Maruti Suzuki India Ltd, highlighted the need for stronger domestic innovation in the automotive ecosystem.
"Technology is advancing rapidly, and the auto industry must strengthen its position in global value chains. India's R&D intensity, particularly among Tier 1 and Tier 2 suppliers, lags behind global peers. As we move toward electrification, batteries, hydrogen, and advanced electronics, building indigenous R&D capabilities through industry-government collaboration will be vital for future competitiveness," he stated.
Highlighting challenges in digital adoption, Tejpreet Singh Chopra, CEO, Bharat Light and Power, noted that India must first build a strong data foundation for AI-enabled manufacturing.
"Linking machines with AI/ML data models, extracting usable data, and integrating AI meaningfully on the shop floor remain major challenges. For MSMEs, ROI concerns persist, so AI must deliver clear operational value and incentives. Scaling applied AI use cases, such as predictive maintenance, quality, safety, and energy efficiency, from large enterprises to MSME clusters is essential," he said.
Neeraj Huddar, Resident Fellow, NITI Aayog, Lead Architect NITI Frontier Tech Hub, emphasised the economic imperative for India to accelerate advanced manufacturing.
He stated, "The vision of Viksit Bharat targets manufacturing contributing 25 per cent of GDP by 2047; however, under a business-as-usual scenario, India would fall short by a Rs 5.1 trillion gap. Bridging this gap will require transformative interventions anchored in advanced manufacturing, with focused action across five key clusters--Engineering, Consumer Products, Life Sciences, Electronics, and Chemicals--where frontier technologies can drive higher value addition, productivity, and global competitiveness."
The Summit brought together industry leaders, policymakers, technology providers, and experts to discuss strategies, opportunities, case studies, and best practices for positioning advanced manufacturing as a strategic priority for India's growth and competitiveness. (ANI)