Discrete and process industries are witnessing a clear acceleration in advanced-automation adoption. India’s manufacturing sector is undergoing a rapid shift toward automation, digitalisation and AI-enabled intelligence, driven by the need for global-standard precision and resilient supply chains, says Atul Patil, GM, Strategic Planning, Factory Automation and Industrial Division (FAID), Mitsubishi Electric India, in this interview. 

How has India’s manufacturing landscape evolved in recent years?

India’s manufacturing sector is moving toward greater digital depth, stronger supply-chain control and higher production resilience. India’s industrial automation market—estimated at $ 17.28 billion in 2025—is projected to reach $ 33.64 billion by 2030 with a CAGR of around 14.3 per cent. Companies across automotive, electronics, FMCG, pharma and engineering are reshaping factories using data, advanced automation and energy-aware operations. National programmes and the push for local value creation are encouraging manufacturers to modernise everything, including material tracking and process control.

Manufacturers across sectors are shifting from conventional, labour-intensive processes to highly automated, data-driven and quality-focused operations. There is a strong push toward precision manufacturing, energy efficiency and digital integration as companies aim to meet global standards and expand their export competitiveness. At the same time, the demand for robotics, smart machines and connected factories is rising sharply, driven by productivity needs, workforce upskilling and the rapid growth of sectors like automotive, EV, pharma and electronics. Overall, India is evolving into a more agile, technologically progressive manufacturing economy, creating significant opportunities for advanced automation and digital solutions.

In what ways are automation, robotics and digitalisation reshaping Indian manufacturing?

Automation is accelerating a structural shift in Indian manufacturing by replacing manual interventions with predictable, data-governed systems. Robotics, servo systems, connected PLCs, machine vision and digital control tools are becoming standard in high-volume, high-precision industries. These technologies are improving line balancing, stabilising cycle times and strengthening end-to-end traceability.

The impact is visible across sectors that prioritise precision and regulated output. Automotive, electronics, pharmaceuticals, food & beverage and packaging are the most active adopters because their output depends on consistency and speed. Robotics adoption is rising as well, supported by India’s growing electronics and automotive exports, which crossed $ 38.6 billion in FY25 for electronics alone.

Mitsubishi Electric is playing a pivotal role in transforming India’s manufacturing sector by integrating advanced automation, robotics and digitalisation across industries. PLCs, drives and CNCs, along with industrial and collaborative robots, are helping manufacturers achieve higher productivity, precision and global-quality standards. Mitsubishi Electric’s e-F@ctory solution enables real-time data visibility, predictive maintenance and seamless IT-OT integration, which are essential for India’s transition to smart manufacturing. Strong local engineering, training support and partnerships with OEMs and system integrators help modernise production, empower India’s workforce and strengthen competitiveness on the global stage.

How important will AI be in accelerating automation? Is its impact already visible?

AI will be a major catalyst in accelerating automation adoption across Indian industries, and its impact is already visible. AI is enabling manufacturers to move beyond traditional automation toward intelligent, self-optimising operations. AI-driven analytics, predictive maintenance, machine-learning-based quality inspection and adaptive control systems are helping factories reduce downtime, improve yield and make faster decisions on the shop floor.

Indian industries—especially automotive, EV, pharma, FMCG and electronics—are increasingly seeking solutions that can analyse data in real time and enhance process reliability.

Mitsubishi Electric’s e-F@ctory solutions and intelligent controllers are already being deployed in India, supporting customers with actionable insights and efficiency gains. We see AI not as a future add-on but as an integral part of the next wave of smart manufacturing that will reshape competitiveness and productivity in the country. This journey is further strengthened through platforms like EntSightX, which provides deep, data-driven operational intelligence, and MELSOFT Gemini, which enables virtual commissioning and simulation to accelerate digital-manufacturing adoption.

How is Mitsubishi Electric India contributing to India’s automation transformation?

Mitsubishi Electric India supports this transformation by combining global engineering capability with strong local execution. Our Factory Automation Systems portfolio spans PLCs, drives, servo systems, robotics, cobots, CNCs, energy-monitoring solutions and shop-floor digital tools. These systems form a unified environment where machines, data and operators work in sync.

Localisation plays an important role. Our Talegaon facility designs and assembles Modular I/O and the GOC43 integrated PLC-HMI, with ongoing localisation of compact PLCs and inverters. This ensures products are aligned with Indian operating conditions and supply cycles.

Furthermore, we invest in skills through training centres, engineering workshops and academic collaborations. We help create a workforce capable of managing modern automation systems. Combined with our system integrators and channel partners nationwide, we offer customers the support needed to adopt and sustain advanced technologies.

What key hurdles do industries face in adopting automation, and what challenges are specific to SMEs?

Industries face challenges linked to legacy systems, limited digital skills, integration complexity and budget restrictions. Many factories still operate equipment that was never designed for connectivity, making system upgrades more involved. Building reliable data flows, aligning IT-OT environments and maintaining cyber-safe operations also require new capabilities that many organisations are still developing.

For SMEs, these issues are even more pronounced. They often run lean teams, have limited access to specialised engineers and require clear, short-cycle returns on investment. Adoption slows when solutions seem difficult to maintain or when training resources are not readily available.

Mitsubishi Electric India addresses these realities through modular automation options, accessible support and products built for practical use in Indian environments. Our Factory Automation Systems—including automation-visualisation software ICONICS and the no-code manufacturing-intelligence platform EntSightX—allow SMEs to adopt digital practices gradually while maintaining operational stability. Training, partner support and local engineering help ensure improvements are sustainable rather than disruptive.

How significant are component-availability challenges for automation players and suppliers?

Component-availability challenges remain a global reality. Semiconductor supply cycles, rare-earth dependencies and international trade conditions continue to influence lead times for drives, controllers, power electronics and sensor-heavy equipment. Although the situation is more stable today than in recent years, variations in availability still affect planning.

Manufacturers expect clear communication and dependable timelines from automation suppliers. Mitsubishi Electric India addresses this through diversified global procurement, coordinated planning across our global factories and consistent engagement between our India teams and customers. This approach helps reduce uncertainty during project execution.

Our manufacturing facility in Pune plays a significant role in easing these challenges by localising production, shortening lead times and building a more reliable supply base for key Factory Automation products. It not only enhances delivery responsiveness but also reinforces our long-term commitment to supporting India’s rapidly growing automation demand. While no company is completely insulated from global supply shifts, our emphasis on planning, sourcing depth and strong service support allows us to respond quickly and maintain predictable delivery schedules across industries.

What automation trends—both hardware and software—are emerging on shop floors and in machinery?

Across both discrete and process industries, we are witnessing a clear acceleration in advanced-automation adoption, both in hardware and software. On the shop floor, manufacturers are shifting toward compact, high-performance controllers, energy-efficient inverters, intelligent servo systems and robotics that support flexible, multi-variant production.

Machine builders are increasingly adopting integrated automation platforms that combine motion, safety and control into a single ecosystem to boost speed and precision.

On the software side, there is a strong push toward data-driven manufacturing, with greater use of SCADA, MES, edge analytics and digital-twin tools that help simulate, optimise and virtually commission machines. AI-based quality inspection, predictive maintenance and real-time OEE monitoring are becoming mainstream expectations rather than future aspirations.

Overall, we see Indian plants moving rapidly from isolated automation toward connected, intelligent and scalable architectures that support smart manufacturing and faster time-to-market.