97% of Indian Manufacturers Say Digital Transformation Is Essential as India Accelerates AI-Led Manufacturing

May 25: Rockwell Automation, Inc. , the world’s largest company dedicated to industrial automation and digital transformation, today announced India findings from its 11th annual State of Smart Manufacturing Report. The global study, fielded in 2026, surveyed more than 1,500 manufacturers across 17 leading manufacturing countries, including India.

This year’s findings show that Indian manufacturers are moving well beyond experimentation and into large-scale execution, with digital transformation, artificial intelligence , and automation now central to how organizations are addressing uncertainty, improving competitiveness, and building operational resilience.

In India, 97% of respondents say digital transformation is essential to staying competitive, reflecting near-universal alignment on the need to modernize industrial operations. Indian manufacturers are also investing at a significantly higher intensity than global peers, with nearly 1.6x more high-budget spenders allocating 51-99% of their operating budget to industrial technology.

Dilip Sawhney, Managing Director, Rockwell Automation India, said:

 “The 2026 findings confirm that India is not only keeping pace with global smart manufacturing – it is often leading it. Indian manufacturers are rapidly deploying AI, automation, and digital technologies to address quality, supply chain resilience, workforce shortages, and data utilization at scale. This firmly positions India as a future-ready manufacturing powerhouse, with strong momentum to build globally competitive, technology-driven industrial capabilities.”

Key India findings include:

  • Digital transformation is now a clear priority in India: 97% of Indian manufacturers say it is essential to stay competitive, showing that the focus has shifted from adopting digital tools to scaling them effectively.
  • India is investing heavily in industrial technology: Compared with global peers, India has nearly 1.6x more high-budget spenders allocating 51-99% of operating budgets to industrial technology.
  • AI adoption is already deep and continues to rise: 88% of Indian manufacturers are already using AI/ML in operations, and 41 % of operations are currently AI-augmented. That is expected to grow to 47% by 2027 and 61% by 2030.
  • Capturing and using data remains the biggest internal challenge: 60% of respondents cite capturing, interpreting and using data to improve business as their top internal obstacle, versus 37% globally.
  • Workforce transformation is moving alongside technology transformation: 52% are using technology to create more engaging jobs, 48% are using AI/ML learning technologies to address labor gaps, and 81% say applying AI is a very/extremely important hiring skill.

The 2026 State of Smart Manufacturing Report draws on more than a decade of global research to highlight the capabilities shaping modern industrial operations, including intelligence, resilience, adaptability and workforce transformation.

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