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AI Emerges as Key Growth Driver for Indian Manufacturing Sector: PwC
Industry News- Jul 31,26
PwC study reveals 59 per cent of Indian manufacturers see AI as key to strategic growth over the next five years.
New Delhi
India’s industrial manufacturing sector is entering a decisive phase in which competitiveness will be shaped by how effectively companies embed artificial intelligence, automation, and ecosystem-led innovation into enterprise strategy, as per PwC India’s latest report, Rewriting the rules: The next chapter of Indian industrial manufacturing.
The report highlights that 59 per cent of Indian industrial manufacturers—compared with 52 per cent globally—believe AI will play a significant role in helping them achieve strategic goals in the next five years.
The report also highlights that in an AI-driven future, competitive advantage will be determined not merely by the technology organisations adopt, but by how seamlessly they embed them into their business strategy, operating models, and day-to-day operations. While AI ambitions are widespread, the real test—and the key to sustained value creation—will lie in effective execution.
Indian manufacturers are also accelerating automation across the value chain over the next five years, led by data capture and analytics (82 per cent), followed by quality assurance (69 per cent), planning and forecasting (65 per cent), and customer interactions (63 per cent).
Vinod Kumar, Partner and Leader Manufacturing Sector, PwC India, said: “India’s manufacturing sector is entering a pivotal decade. The opportunity is no longer simply about expanding production capacity; it is about building intelligent enterprises that use AI, automation, and data-driven decision-making to create sustainable competitive advantage. The manufacturers that thrive will be those that align technology investments with business strategy, workforce transformation, and ecosystem collaboration.”
The report suggests that Indian manufacturers are taking a distinctive path by using automation not only for productivity, but also to improve customer experience, responsiveness, and commercial agility. This marks a shift from efficiency-led digitisation towards market differentiation and value creation, with automation becoming a lever for both operational resilience and customer relevance.
“With AI, technology will continue to evolve and reshape factories, but in the long run it is an organisation's culture that will determine whether those innovations become a source of progress or simply another layer of complexity. Going ahead, when almost every AI tool will become widely available to every organisation, the rarest capability will be an organisation's willingness to learn, unlearn and execute,” added Kumar.
As automation becomes more pervasive, performance differentiation will depend less on the technologies companies adopt and more on how coherently they integrate these capabilities into enterprise strategy, product development, supply chains, customer engagement, and decision-making.
The report also points to a shift towards servitisation and solution-based business models as manufacturers aim to deepen customer relationships and unlock new revenue streams beyond traditional product-led growth.
PwC India
Vinod Kumar
Industrial Manufacturing
Artificial Intelligence
Automation
Digital Transformation
Smart Manufacturing
Indian Manufacturing Sector
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