The ASSOCHAM-Odisha State Development Council and Primus Partners have released a report titled “AI-Driven Manufacturing: Innovation, Efficiency & Sustainable Growth” at the Odisha Manufacturing Conclave 2025. The report focuses on how Artificial Intelligence is transforming manufacturing in India and globally, enhancing productivity, efficiency, sustainability, and resilience in sectors like steel, mining, green energy, logistics, and infrastructure. It highlights the state’s proactive stance in integration across core industries and emphasizes role in advancing ESG goals.
The report also calls for stronger public-private partnerships and strategic led skilling, particularly in MSME clusters and technical institutions, to build a future-ready industrial workforce. The report highlights how Odisha can lead India’s led industrial leap, balancing innovation with sustainability and making ‘Made in India’ globally competitive and future-ready.
Artificial Intelligence (AI) is poised to fundamentally reshape India’s manufacturing ecosystem, according to a joint report by ASSOCHAM and Primus Partners. The study outlines how integration will enhance productivity, optimize costs, improve quality control, and foster innovation across sectors. This development aligns with national missions like Make in India, Digital India, and Industry 4.0, highlighting the country’s vision to become a global manufacturing powerhouse. ( (India’s Manufacturing)
Applications Across Manufacturing Sectors
From automotive to electronics, textiles, and pharmaceuticals, is being actively deployed to streamline operations. In sectors like automotive, driven robotic process automation (RPA) and predictive maintenance are reducing downtime and enhancing assembly line efficiency. Similarly, AI-powered digital twins are revolutionizing product lifecycle management in aerospace and heavy machinery.
Boost to MSMEs and Industrial Hubs
One of the most promising takeaways from the report is potential to uplift India’s Micro, Small, and Medium Enterprises (MSMEs). With cost-effective tools now available via platforms like ONDC and the India initiative, even smaller players in industrial clusters such as Pune, Coimbatore, and Faridabad can adopt automation. This shift will help level the playing field between MSMEs and large manufacturing conglomerates. (Make in India)
Skilling & Workforce Transformation
As becomes more embedded in shop floors and supply chains, workforce skilling is paramount. The report emphasizes the need for public-private partnerships to enhance literacy, particularly in Tier II and Tier III cities. Initiatives like and expected to play a critical role in re-skilling workers in robotics, machine learning, and data analytics.
Challenges and Roadblocks
Despite the optimism, the report acknowledges several challenges. These include the high cost of initial deployment, lack of digital infrastructure in rural belts, and data security concerns. There is also a call for comprehensive regulatory frameworks to govern in manufacturing to ensure responsible usage.
Way Forward: Policy and Industry Collaboration
The report concludes by advocating for a National in Manufacturing Policy to coordinate efforts among ministries, industry bodies, and academia. Collaboration between industry leaders like Tata Steel, Siemens India, and start-ups like Locus or Grey Orange can fast-track adoption. ASSOCHAM and Primus Partners recommend forming AI innovation hubs linked to industrial corridors like the Delhi-Mumbai Industrial Corridor (DMIC).
Q1. What is the key highlight of the ASSOCHAM–Primus Partners report?
The report emphasizes how will significantly enhance efficiency, productivity, and innovation in India’s manufacturing sector.
Q2. Which sectors in manufacturing will benefit most from ?
Sectors like automotive, electronics, heavy machinery, and textiles are expected to gain the most from AI integration.
Q3. How will impact MSMEs in India?
AI can help MSMEs automate processes, reduce costs, and compete globally by accessing affordable, scalable tech solutions.
Q4. What challenges hinder adoption in Indian manufacturing?
Major challenges include lack of digital infrastructure, high implementation costs, and a shortage of skilled workforce.
Q5. How is the government supporting in manufacturing?
Through initiatives like Make in India, Skill India, and Digital India, the government is promoting AI adoption and skilling.
