Industrial AI To Boost Manufacturing Output
ECONOMY & POLICY

Industrial AI To Boost Manufacturing Output

India’s manufacturing sector is moving from AI pilots to scaled shopfloor deployment, according to a new report by YourNest Venture Capital and Praxis Global Alliance. The report states that 90 per cent of Indian manufacturing enterprises are experimenting with AI, while funding is projected to rise ten-fold to $1.5 billion by 2030. Industrial AI is expected to unlock around $150 billion in incremental manufacturing output by 2030 by optimising existing assets, without proportional greenfield capital expenditure. The report highlights potential reductions of 30–50 per cent in unplanned downtime, 10–40 per cent in conversion costs, yield improvements of 5–15 per cent and throughput increases of up to 30 per cent. Funding in Industrial AI stood at $150 million in 2024, while average deal sizes increased nearly four-fold to around $8 million between 2021 and 2025. The report said Industrial AI is emerging as a high-ROCE lever, with payback cycles as short as 12–18 months. The report noted that Industrial AI solutions are becoming deeply embedded in manufacturing processes, creating stronger defensibility than traditional software models. It added that legacy system integration and data readiness remain challenges, but are being addressed through wider digital transformation efforts.

India’s manufacturing sector is moving from AI pilots to scaled shopfloor deployment, according to a new report by YourNest Venture Capital and Praxis Global Alliance. The report states that 90 per cent of Indian manufacturing enterprises are experimenting with AI, while funding is projected to rise ten-fold to $1.5 billion by 2030. Industrial AI is expected to unlock around $150 billion in incremental manufacturing output by 2030 by optimising existing assets, without proportional greenfield capital expenditure. The report highlights potential reductions of 30–50 per cent in unplanned downtime, 10–40 per cent in conversion costs, yield improvements of 5–15 per cent and throughput increases of up to 30 per cent. Funding in Industrial AI stood at $150 million in 2024, while average deal sizes increased nearly four-fold to around $8 million between 2021 and 2025. The report said Industrial AI is emerging as a high-ROCE lever, with payback cycles as short as 12–18 months. The report noted that Industrial AI solutions are becoming deeply embedded in manufacturing processes, creating stronger defensibility than traditional software models. It added that legacy system integration and data readiness remain challenges, but are being addressed through wider digital transformation efforts.

Next Story
Infrastructure Transport

IRCON Celebrates 50 Years of Infrastructure Excellence

IRCON International, a Navratna Central Public Sector Enterprise under the Ministry of Railways, celebrated its 50th Foundation Day at Bharat Mandapam, New Delhi. The Golden Jubilee event marked five decades of contribution to India’s railway and infrastructure development, while reaffirming the company’s commitment to nation-building through engineering excellence. The celebration was attended by senior officials from the Ministry of Railways, IRCON’s leadership, industry stakeholders and employees. The event featured the launch of a commemorative coffee table book on IRCON’s 50-year ..

Next Story
Infrastructure Urban

BorgWarner Wins Three Electric Motor Orders in Asia

BorgWarner has secured three electric motor business awards with Asian original equipment manufacturers across China and South Korea, strengthening its electrification portfolio across battery electric and hybrid vehicle applications. Production under the new programmes is expected to begin in phases from June 2026 to September 2027. In South Korea, BorgWarner will supply a stator assembly for a new electric B-segment SUV programme. The award builds on its earlier supply of hairpin eMotor technology for the customer’s multi-purpose vehicle platform, reinforcing its position as a trusted supp..

Next Story
Infrastructure Urban

AIDO Showcases Door Systems At Aluminium Expo

AIDO, an endorsed brand of dormakaba, marked its participation at Aluminium Expo 2026, held from 1–3 May at Calicut Trade Centre, Calicut. Organised by the Aluminium Dealer Forum, the event saw AIDO showcase its SLYNK Profiled Door System and advanced Digital Door Lock range. The SLYNK Profiled Door System is designed for seamless spatial transitions, minimal aesthetics, smooth operation and optimised space use. It supports wooden doors, framed glass doors and frameless glass doors, with configurations including invisible sliding, pocket sliding, telescopic sliding, synchro sliding and singl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement