Artificial Intelligence in Manufacturing Industry in India 2023-2028

In 2023, Artificial Intelligence market in India was valued at INR 503.80 Bn and is expected to reach INR 1.92 trillion by FY 2029, expanding at a compound annual growth rate (CAGR) of ~26.09% during the 2024 - 2029 period. The market for Artificial Intelligence in India's manufacturing sector includes AI-driven automation, data analysis, Machine Learning, and predictive maintenance solutions.

The increasing need for more intelligent and efficient manufacturing methods, along with the transition towards Industry 4.0, is propelling the integration of AI in India's manufacturing industry.

Major Stakeholders:

• Government Authorities
• Developers
• Researchers
• Practitioners

Market drivers:

Initiatives such as Make in India and Digital India encourage the utilization of cutting-edge technologies such as AI to improve industrial productivity and innovation. The National AI Strategy of the government lays out a plan to incorporate AI in multiple sectors, such as manufacturing, to drive innovation and industrial expansion.

Government Initiatives:

The India AI Mission, with a robust budget exceeding INR 10.3 billion, is a strategic initiative aimed at transforming India's artificial intelligence ecosystem over the next five years. This mission focuses on fostering innovation, accelerating research, and enabling the practical adoption of AI across various sectors. The mission aligns with India’s broader vision to become a global AI hub, leveraging its rich talent pool, technological prowess, and diverse data landscape. By focusing on these strategic pillars, the India AI Mission aims to unlock AI’s transformative potential, driving economic growth, improving governance, and addressing critical societal challenges.