Industry 4.0: Challenges & Bottlenecks In India

Industry 4.0: Challenges And Bottlenecks In India


The new wave of digital disruption drives the fundamental shift in the way products are produced. This transformation of digital technology in the industry is so compelling that it marks the next revolution in the manufacturing industry. To represent the fourth revolution in the industry, this great phenomenon is called industry 4.0. It marks a significant shift in manufacturing leveraging the power of digitisation of the industry. 

The RevolutionYearInformation
1st Revolution1784Introduction of Steam & Water Power and Mechanised equipment
2nd Revolution1870Mass production Assembly Lines using electrical power
3rd Revolution1969Automated production with robotic, computerised and IT Systems & equipment
4th RevolutionTodayUse of Smart Factory, Autonomous Systems and Machine Learning

What Is Industry 4.0? 

But what is Industry 4.0? Let us make it super easy for you to understand! 

The term industry 4.0 refers to a new kind of revolution in the manufacturing industry that comprises advanced manufacturing techniques with the Internet of Things (IoT) to create such systems of manufacturing that are not only interconnected but also efficient in using information, communicating and analysing. 

Taking things of the third revolution one step forward, industry 4.0 enhances the computer and automation systems with smart and autonomous systems that are fueled by data and Machine Learning.

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The acceleration of digital transformation in the manufacturing sector is seen as the most notable revolution. Emerging markets like India see great potential in the industry 4.0 revolution in introducing incremental and radical advancement in the world of manufacturing. The Indian Manufacturing Industry is under the spotlight for its enormous potential to become a manufacturing leader in the world. And the revolution of industry 4.0 may give wings to the dreams of India IoT-based applications and advanced digital technologies. 

With the growing demand and market competition, it is pertinent for the Indian industry to efficiently enfold the advancements in manufacturing operations to serve the growing demands of the economy.  The Indian manufacturing industry indeed is acknowledging this need for a new revolution that scales up the manufacturing as well as the revenue. 

Challenges Faced By The Indian Manufacturing Industry

There is no doubt that Industry 4.0 has a lot of potential in making India the world’s leader in the manufacturing sector. But the reality is that the Indian manufacturing industry is still at a very early stage in the adoption of Industry 4.0. For India, the challenges lie in the implementation. According to industry experts, some of the major challenges are: 

Capital Expenditure 

It requires the complete transformation of systems, cloud infrastructure and a whole new digital model. All this requires huge investment and capital expenditure. Changing the entire existing system with a new one involves huge costs and this is one of the major hindrances that limit the companies to explore the full potential of industrial 4.0. 

Skilled Labour 

Increasing automation requires a more skilled workforce who have a better understanding of technology and automation. India needs such a young and enthusiastic workforce that is ready to upskill themselves with technological advancements and automation.

The complex structure and concept of cloud computing, smart machinery, big data and IoT are not easy at all. With the increase in the adoption of Industry 4.0, the demand for skilled workers will become even more significant. This is why India needs to step up the game and focus more on generating a skilled workforce. 

Legal issues

It is said that everything has its good and bad effects. The same is the case with the revolution of industry 4.0. The same automation and digitalisation may prove to be a threat also. The cyber-physical network of industry digitisation enables the transfer of huge data through web apps and cloud systems. And to make the digitisation process more secure, there are some legal compliances that need to be fulfilled before the initiation of the process. This legal compliance needs proper research by the experts and project manager.  Ignoring the legal security measures can result in a data theft that may also lead to the downfall of the company. 


Indeed, Industry 4.0 revolution has the great potential to provide India with big manufacturing opportunities. If India is able to tackle its limitation in the implementation and adoption of technological automation at this nascent stage then the future of the Indian manufacturing industry will be brighter. Industry 4.0 has the feasibility to create a prolonged manufacturing ecosystem that gives India an edge in not only just sustain the market competition but also will have a competitive advantage over global competitors. 

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