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.
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. Initiatives like SEBI’s new Business Responsibility and Sustainability Reporting (BRSR) requirements raise the bar for transparency among Indian manufacturers.
Here’s where Industry 4.0 can be a game changer.
IoT-enabled tracking ensures supply chain transparency, while blockchain technology verifies if the materials are ethically sourced. AI-driven optimisation further reduces energy usage and emissions. These technologies improve governance, too, by ensuring data accuracy and making reporting easier. Industry 4.0 also promotes socially conscious manufacturing by improving social aspects like human rights, employee welfare and safety, labour practices and stakeholder relationships. In Finland, for example, remotely operated robots are being used to transport hazardous waste to ensure the safety of human workers.
However, while the benefits of 4IR and ESG are clear, the path to adoption is not without its challenges. An S&P Global report commissioned by Hitachi found that central skills like data science, IoT development and robotics are in short supply, so the initial investment in technology and training can be quite high. Additionally, we have a pressing need to upskill our workforce. Before reaping the benefits of the industry 4.0 and ESG convergence, we must also bridge the awareness gap, meet potential R&D and infrastructure needs and improve exposure for companies in tier 2 & 3 regions.
That said, the long-term gains in efficiency, competitiveness and compliance far outweigh these initial challenges. Manufacturing companies that invest in digital transformation and sustainability today will be in a better position to thrive tomorrow.
Learning from Global Leaders
India’s ESG landscape is evolving rapidly. Deloitte’s ESG Preparedness Survey revealed that around 60% of organisations were keen on setting ambitious ESG goals. However, only 27% of businesses were adequately prepared to meet ESG requirements.
Clearly, we need to bridge the gap between sustainable intention and action in addition to merging 4IR adoption and ESG accountability.
Globally, many manufacturers are reaping the benefits of this convergence and setting inspiring benchmarks we can emulate. For instance, American aerospace manufacturer Pratt & Whitney has successfully eliminated 90% of ingots in the production of jet engine blades and reduced raw material waste and factor emissions — all through advanced manufacturing techniques enabled by Industry 4.0 technologies. Industry leaders like Ericsson, L’Oréal and Renault have also successfully deployed 4IR to achieve efficiency and sustainability goals.
A Call to Action for Indian Manufacturers
While many Indian manufacturers may be uncertain about their path forward, the journey to Industry 4.0 and ESG integration begins with a single step. By clearly defining their ESG objectives, companies can create a roadmap for sustainable growth. It then becomes easier for manufacturers to implement the 4IR technologies that align with their sustainability framework.
As we strive towards becoming a $5 trillion economy, the path ahead is clear and the potential is immense. Ultimately, the future of manufacturing is sustainable, efficient and data-driven — and with the right steps, India’s manufacturers may be poised to be at its forefront.
About the Author- Bharat Gite, MD & CEO, Taural India
Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.
From: financialexpress
Financial News
