Answer

Introduction

The Indian manufacturing sector contributes around 15–16% of GDP, yet remains constrained by outdated technologies, regulatory burdens, skill gaps and global competition. While Industry 4.0 emphasized automation and optimization, Industrial Revolution 5.0 represents a shift towards human-centric, sustainable, and resilient industrial practices combining advanced technologies with human creativity. 

Body

Challenges faced by Indian Manufacturing sector 

• Productivity: Low productivity arises from outdated machinery and limited automation, which reduce workforce efficiency.
•  Innovation Deficit: Limited R&D spending by industries  curtails innovation in high-tech sectors leading to import dependency.
  Eg: Despite being a pharma hub, India relies on imports for 70% of Active Pharmaceutical Ingredients (APIs) from China.                                           
• Global competitiveness: Weak global value chain integration keeps Indian firms focused on low value addition, restricting exports and reducing global competitiveness.

Key Features of Industrial Revolution 5.0

• Human-Centric Approach : Focuses on placing human creativity, problem-solving, and well-being at the center of industrial processes.
  Eg: Collaboration of humans with digital twins, AI, and robotics to enhance innovation.
• Sustainability Orientation : Emphasizes green manufacturing, circular economy, and low-carbon technologies to address climate and resource concerns.
• Resilient Systems – Builds flexible and adaptive supply chains that can withstand global shocks.
  Eg: Covid-19 pandemic led to global supply chains disruptions in critical sectors.
• Human-Machine Collaboration; Encourages synergy where machines handle repetitive tasks while humans lead creative, ethical, and complex roles.
  Eg: Usage of Co-bots  in automobile assembly and hazardous works  while humans oversee design and customization.
• Personalization of Production: Uses advanced data analytics and smart manufacturing to deliver highly customized products for diverse consumers.
  

Leveraging IR5.0 for India’s Manufacturing Sector for overcoming structural bottlenecks and accelerating economic development.

• Workforce Upskilling: Demand-driven, industry-aligned skilling in AI, robotics, IoT, along with soft skills like creativity and adaptability.
  Eg: AICTE declaring 2025 as the “Year of AI” to prepare 40 million students for Industry 5.0.
• Boosting R&D and Innovation :Greater investments in indigenous design, advanced materials, and emerging tech, with tax breaks and innovation clusters.
• Technology Integration: Adoption of AI, digital twins, and smart robotics to improve productivity and product quality.
• Strengthening  Ecosystems: Building collaborative platforms among industries, academia, and government to accelerate innovation.
  Eg: Hackathons, Institution’s Innovation Councils, Kapila Start Up Policy  and ATAL faculty development programmes.
• Sustainable Manufacturing: Prioritizing circular economy models and energy efficiency for global competitiveness.
  Eg: “Vocal for Local” + Zero effect- Zero defect based production for MSMEs.

Challenges India Faces in Leveraging Industry 5.0

• Digital Divide : Unequal access to high-speed internet, cloud infrastructure, and smart technologies between metro hubs and Tier-2/3 cities could restrict inclusive adoption.
• High Transition Costs : MSMEs, which form 30% of GDP, may find it difficult to adopt collaborative robots, digital twins, and AI-driven tools due to high upfront capital costs.
• Regulatory Gaps : Absence of clear policy on AI ethics, data governance, and liability in human-machine collaboration could delay adoption.
• Cybersecurity Risks : Increased human-machine connectivity expands vulnerabilities to cyberattacks, risking intellectual property theft and supply chain disruptions.
• Low R&D Expenditure: It hinders innovation reducing global competitiveness, India’s R&D expenditure at 0.64% of GDP vs China’s 2.4% highlights the gap to be bridged.

Conclusion

Thus , by aligning a national roadmap with Viksit Bharat 2047, investing in inclusive skills across Tier-2/3 cities and enabling innovation financing for MSMEs, India can harness its demographic dividend and grassroots talent. In this way ,Industrial Revolution 5.0 offers India a transformative pathway to address productivity gaps, foster innovation, and enhance global competitiveness.

DOWNLOAD PDF