Can India Build a Homegrown, Indigenous Robot Industry to Rival China’s?

According to Mahesh Wagle of robotics firm, Cybernetik Technologies, “there were less than 100 robots made annually for industries in India about 15 years back”. He adds that there are 5,000 to 6,000 robots built every year now. Wagle says that India is “still around 5-6 years behind China in automation” – but is aspiring to automate and become a part of the global supply chain.

In his recent interview, Nikhil Ramaswamy of CynLr talks about the crucial role that robots have played in making China’s image as a global manufacturer. Traditionally, China is the largest buyer of robots accounting for nearly half of the industrial robot installations in 2021.

A PwC study found that 50% of CFOs want to accelerate automation across their organizations. As manufacturing enters the Industry 4.0 phase, robotic solution developers in India can enable manufacturers to adopt this technology.

Can India successfully rival China’s robot industry with its homegrown industry? Let’s talk about it.

Favorable Factors for India Against China

What are the current factors favoring India’s robot industry against that of China? Here are some of them:

1.   The Emergence of Industry 4.0

A recent report on Industry 4.0 in India highlights that domestic manufacturing spent between $5.5 to $6.5 million on Industry 4.0 solutions in 2021. Manufacturers are trying to leverage the immense potential of Industry 4.0 to automate processes like material handling and workforce safety. In India, automotive companies like Bajaj Auto and Bharat Forge are deploying automation technologies to eliminate human errors and reduce human exposure to hazardous materials and environments.

2.   The Demographic Shift in China

China’s “one-child policy” is creating demographic challenges by not adding to their working-age population. According to the latest reports, the country’s working-age population declined from 997 million (in 2014) to 986 million (in 2021). China-based Changying Precision Technology has constructed a “robots-only” factory – where robots comprise 90% of the workforce.

Unlike China, India does not face a demographic crisis. According to Ernst & Young, India’s working-age population will increase to 68.9% of the total population by 2030. Despite the favorable demographics, young graduates in India are unable to meet the skill demand. Hence, more companies are likely to turn to robotics to complete their skilled work. For instance, Bangalore-based Flipkart is implementing robotics to improve the operational efficiency of its warehouses.

3.   Technology is Replacing Cheap Labor

Thanks to their growing population, both China and India have had the advantage of providing a large pool of cheap labor. Gradually, cheap labor is being replaced with technologies like robotics. With its “Make in India” initiative, India was able to compete head-to-head with China in manufacturing high-quality products at cheaper costs.

With the advent of Industry 4.0, India can look to build this advantage by building smart factories using technologies like Robotics and the Internet of Things.

4.   Rise of the MSME Sector in India

Ministry of Micro, Small & Medium Enterprises

The Industry 4.0 report also noted the emergence of MSMEs in India. MSMEs now account for a third of India’s manufacturing output and 50% of its exports. Guruprasad Bangle of Solution Buggy says, “MSMEs are adopting Industry 4.0 solutions to survive”. Among the recent developments, automotive and pharma MSMEs are investing heavily in automation technologies like robotics.

According to Darshana Thakkar, collaborative robots (or cobots) are “boosting the Make in India initiative with their flexibility and faster ROI”.

What does India need to do more to gain a competitive edge over China in the coming years? Let’s discuss that next.