Rise Of Automation And Robotics In Manufacturing

We have been conditioned to see the rise of automation and robotics in the secondary sector as a threat when it is full of opportunities. It has the potential to lift mass sections of people out of poverty. This is not to say that it does not come with its own set of challenges, but those challenges can be tackled if we understand some core principles of economics.

According to the principles of basic, core economics, the shift of the economy from being labor-intensive to being machine and automation intensive, is considered a sign of development. Given this foundation, nations strive to innovate, invent and come up with technology to scale up their manufacturing. 

In an exclusive conversation with BW, Siddhant Bery, Managing Partner, KSP INC said, “India is also on this path, with government initiatives like Digital India and the rise of private investment in the manufacturing sector, there is a definite increase in automation and robotics in manufacturing. This new trend is not that new. While the industrial revolution has been relatively late and slow in India as compared to the nations in the west, it has been picking up pace in the last few years.”

Automation and the increase of robots or machines can be a boon or a Bane depending on the perspective. If you look at it from the lens of employment and human capital then, you will inevitably see it as a bane. Machines can manufacture and streamline the entire procedure quickly, more efficiently and effectively than humans. It leads to large-scale manufacturing but also a decline in mass employment generation. Companies require skilled man force to operate those machines and in very less numbers. 

However, this is a huge bane for the economy, nation as well as people on an aggregate macro scale. Manufacturing or the secondary sector of the nation is what leads it to higher GDP growth rates, with China being a fitting example. With an increase in the scale of production, a sort of chain reaction takes place. There are more products in the economy, more to buy, and more to spend on. The money moves again and the economy grows. This is exactly what led to the post-pandemic recovery of India. 

In any industry, there are a lot of firms. If one firm manages to increase its output by using innovative machinery and technology, then it will result in a surge in its profits. They will inadvertently lead in the competition, and this will eventually force others to do the same given the competitive climate in a country as vast as India. Using technology enables firms to produce more. At the same time, it encourages them to strengthen the workforce, to make it more capable, further skilled and capable of working with machines. 

“If I talk about the metallic and indoor furniture market in particular and in general about any market that involves state-of-the-art, artistic capabilities and design, then human capital assumes greater importance. Of course, machines can scale up production but the initial design of any product comes from the human mind,” added Bery. 

Nevertheless, with a rise in Artificial Intelligence and 5G technology, the day is not far when machines would be able to design entire product lines. However, that day is not yet here for India. 

Since India is a country that values its heritage, art passed down through generations, minute detailing and intricacies, it is all very important not just for producers but also the consumers. Hence there is a need to strike a perfect balance between human capital and capabilities, the talent and touch of the man versus the mass appeal of machines and robotics. In an attempt to scale up manufacturing and output, we should not forget what it is that we are upscaling. Bery also stated that quality should never be compromised for quantity, which is what was done in China. Hence despite their tremendous economic success, they earned a bad name when it comes to the quality of their products. 

Years have passed, and we have not yet made the transition from an underdeveloped to a fully developed nation. We see population and diversity as a hindrance. “Rather I see it as an amazing strength that we should harness. With so many minds, we have a higher probability of innovations and ideas that could change the world and its ways. With this humongous diversity, we have the chance to get multiple perspectives and ideas about the various needs of the people. After all, necessity drives innovation,” Bery added.

India needs to carve out a unique name and should see the challenges as opportunities to do something that has never been tried before. With the right priorities and perspectives, it is not an impossible goal to achieve for the country.