Rockwell Automation has released the India findings from its 11th annual State of Smart Manufacturing Report, revealing that Indian manufacturers are rapidly scaling investments in artificial intelligence, automation, and digital transformation to strengthen competitiveness and operational resilience.
The global study, conducted in 2026, surveyed more than 1,500 manufacturers across 17 major manufacturing countries, including India.
According to the report, 97 per cent of Indian manufacturers believe digital transformation is essential to remain competitive, signalling a strong industry-wide shift from experimentation towards large-scale implementation of smart manufacturing technologies.
The findings also showed that Indian manufacturers are investing more aggressively in industrial technology compared to global peers, with nearly 1.6 times more high-budget spenders allocating between 51 per cent and 99 per cent of their operating budgets towards industrial technology initiatives.
Dilip Sawhney, Managing Director of 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.”
The report highlighted that 88 per cent of Indian manufacturers are already using AI and machine learning technologies in operations, while 41 per cent of manufacturing operations are currently AI-augmented. This figure is expected to rise to 47 per cent by 2027 and further to 61 per cent by 2030.
Despite growing adoption, manufacturers identified data management as a major challenge. Around 60 per cent of respondents cited capturing, interpreting, and utilising data effectively as their biggest internal obstacle, significantly higher than the global average of 37 per cent.
The study also pointed to significant workforce transformation efforts alongside technological upgrades. More than half of respondents said they are using technology to create more engaging jobs, while 48 per cent are leveraging AI and machine learning-based learning technologies to address labour shortages. Additionally, 81 per cent stated that applying AI skills is either very important or extremely important during hiring.
The report draws insights from respondents across sectors including automotive, food and beverage, semiconductor, energy, consumer packaged goods, and life sciences, representing companies with revenues ranging from USD 100 million to more than USD 30 billion.
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