By Sravya Vemuri
Last week, N Sivananda, Joint Secretary in Department of Heavy Industry, said in a statement that the government is making plans to set up four centres in the country which would support the SMEs (Small and Medium Enterprises) take steps to implement industry 4.0. The ministry proposed to set up the centres this year in institutes including IIT Delhi, Central Manufacturing Technology Institute, Bengaluru, and IIT Bombay.
Understanding Industry 4.0
The first industrial development came with mechanised processes that helped our ancestors in few methods of production. Then came electricity and mass production. The third phase was categorised by the advent of automation and computers when machines started replacing the human labour in assembly lines. The fourth industrial revolution, synonymously called industry 4.0, introduces what has been called the “smart factory”, in which cyber-physical systems monitor the physical processes of the factory and make decentralised decisions. The physical systems become the Internet of Things, communicating and cooperating both with each other and with humans in real time via the wireless web. Interoperability is an essential component, whereby machines, devices, sensors and people connect and communicate with one another. Decentralised decision-making is another component, which shows the ability of cyber-physical systems to make simple decisions on their own and become as autonomous as possible.
Leapfrog opportunity for India
For India, the Fourth Industrial Revolution brings tremendous opportunities to leapfrog many stages of development, hastening its journey towards becoming a developed economy. In many ways, the Fourth Industrial Revolution is a leveller. The technologies being used in India will be the same as those in use in the developed world. Robots, AI and IoT, are all technologies transforming the industry in the West and are ready to do the same in India. In many ways, companies in India are ensuring their survival by adopting these technologies. Those who adapt faster and better will be more competitive than others, and definitely in a better position to compete with global entrants. Their survival comes at the cost of jobs. But these can be countered by reskilling and by creating new opportunities. The Indian automotive sector has caught the world’s attention and has attracted many global brands to set up manufacturing units here. The automotive sector alone contributes more than 45 percent to the country’s manufacturing GDP (and about 7.1 percent to India’s GDP) and employs 19 million people. Clearly, there is an opportunity for India to move from a lethargic manufacturing outfit stuck somewhere between Industry 1.0 and 2.0 to Industry 4.0 and beyond.
Is India ready?
The Indian government has implemented various schemes that promote digital penetration in the country. For instance, Digital India initiative started in 2015, which aims at providing access to digital technology and internet to every nook and corner of the country, has been helping the companies in rural areas apart from households. To tackle the job loss, Skill India initiative was started in recent years. However more has to be done to ensure the accessibility along with affordability. Various challenges should be confronted in this process of transformation. Data security issues are greatly increased by integrating new systems and more access to those systems. Additionally, proprietary production knowledge becomes an IT security problem as well. A high degree of reliability and stability are needed for successful cyber-physical communication that can be difficult to achieve and maintain. Loss of high-paying human jobs is always a concern when new automation is introduced. And avoiding technical problems that could cause expensive production outages is still a concern.
Towards 4.0
Major Indian states are taking initiatives to adapt to Industry 4.0. Andhra Pradesh has taken an initiative to capitalise on the IoT potential in the country. The state government has approved the first-of-its-kind IoT policy with an aim to turn the state into an IoT Hub by 2020 and tap close to 10 percent market share in the country. The Indian government has created Green Energy Corridors to bring in more renewable energies, to make smart grids that will support the variable input of renewable energies and create storage. India has committed over $1 billion in this initiative and has started projects in many states, such as Andhra Pradesh, Rajasthan, Tamil Nadu, Gujarat, and Himachal Pradesh. India’s first smart factory, moving from automation to autonomy, where machines speak with each other, is being set up in Bengaluru. It is making progress at the Indian Institute of Science’s (IISc) Centre for Product Design and Manufacturing (CPDM) with investment from The Boeing Company. A smart factory, armed with data exchange in manufacturing and the Internet of Things (IoT) is the future and experts are calling it revolution Industry 4.0. Reports peg the smart factory industry to touch US$ 209 billion by 2025, and all major economies are likely to accept it. Various Indian companies are increasing their focus and partnering with other companies for developing new IoT, and M2M solutions, the Digital India initiative from the government of India is expected to enhance the focus on IoT in tackling domestic challenges.
The initiative is a welcome step by the government. However, more has to be done to ensure that India reaps the benefits of the fourth industrial revolution.