By Bharat Gite
India’s manufacturing sector stands at a pivotal juncture today. We aim to increase the sector’s GDP contribution to 25% by 2025. Simultaneously, a powerful convergence of Industry 4.0 technologies and ESG requirements is reshaping the industry.
For manufacturers in India, this shift is not optional any more. It is a strategic necessity to become sustainable, globally competitive and future-proof.
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The potential impact of adopting these twin goals can be staggering. Recent research by McKinsey and the World Economic Forum found that manufacturers who implement Industry 4.0 (or 4IR) could generate $37 trillion in value by 2025. This digital makeover also positions Indian manufacturers in a sweet spot from which they can earn a national or global presence.
Driving Efficiency and Sustainability Through Technology
At the heart of ESG transformation are Industry 4.0 tech practices that revolutionise manufacturing. 4IR technologies can improve efficiency, foster more sustainable business practices and improve social impact and governance.
For instance, Cognizant reports that a predictive approach driven by IoT, AI and ML minimises machine downtime by up to 50%, extends equipment life and reduces resource wastage. In companies implementing these innovations, productivity has grown by 15-30% and product quality has improved by around 20%.
These innovative technologies also profoundly impact sustainability goals. According to Carboncare, factories utilising adaptive process control have reduced energy consumption by up to 25%. The Fourth Industrial Revolution improves logistics too, which is integral to manufacturing in India. This is vital as transport and logistics account for nearly 25% of CO2 emissions. Beyond these numbers, the possibilities of new-age tech redefining efficiency and sustainability are endless — like AI-driven quality control systems that detect defects earlier, reduce wastage and make manufacturing more sustainable.
Meeting the ESG Challenge and Overcoming Adoption Hurdles
Regulatory pressures are intensifying in India and abroad.
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