AI to Revolutionize Manufacturing in India: ASSOCHAM–Primus Partners Report
At the Odisha Manufacturing Conclave 2025, the ASSOCHAM–Odisha State Development Council, in collaboration with strategy consulting firm Primus Partners, released a landmark report titled “AI-Driven Manufacturing: Innovation, Efficiency & Sustainable Growth.”
The report offers a comprehensive analysis of how Artificial Intelligence (AI) is transforming manufacturing in India and globally, enhancing productivity, efficiency, sustainability, and resilience in sectors such as steel, mining, green energy, logistics, and infrastructure.
It features real-world case studies demonstrating AI-driven advancements in predictive maintenance, quality control, smart logistics, and automation. Odisha’s proactive stance—through initiatives like the Odisha AI Policy 2025 and Odisha AI Mission—positions the state as a national leader in AI integration across core industries.
The report emphasizes AI’s role in advancing ESG goals by reducing emissions, optimizing energy usage, and ensuring compliance. It also calls for stronger public-private partnerships and strategic AI-led skilling, particularly in MSME clusters and technical institutions, to build a future-ready industrial workforce.
The Odisha Manufacturing Conclave 2025 served as the official launch platform for the report, bringing together senior government officials, industry leaders, policy experts, innovators, and academic institutions. The event facilitated high-level dialogue on India’s readiness to embrace AI-led industrial transformation, with Odisha showcased as a key accelerator in driving intelligent, inclusive, and sustainable manufacturing.
AI is not just optimizing manufacturing—it’s redefining it. Globally, AI-driven factories have achieved up to 40% productivity gains and 90% defect detection accuracy. As India embraces Industry 4.0, Odisha stands uniquely positioned with 41.2 MTPA steel capacity, 55% of India’s iron ore output, and a robust digital ecosystem. This report outlines how Odisha can lead India’s AI-led industrial leap, balancing innovation with sustainability and making ‘Made in India’ globally competitive and future-ready,” said Pankaj Lochan Mohanty, Chairman, Odisha State Development Council, ASSOCHAM.
“Artificial Intelligence is rapidly reshaping global manufacturing, with over 80% of manufacturers already adopting AI across operations. Studies show AI can reduce defects by 66%, cut material costs by 12.5%, and speed up production cycles by 20%. Odisha, with its proactive AI policy and sectoral pilots, is leading from the front. The state’s industrial base, combined with digital readiness, presents a compelling opportunity to create globally competitive, ESG-aligned manufacturing hubs. This report offers a practical roadmap to harness AI for economic growth, sustainability, and resilience—especially for MSMEs, which stand to gain the most from targeted skilling, infrastructure support, and innovation partnerships,” added Kanishk Maheshwari, Co-Founder and Managing Director, Primus Partners.
As India charts its course through the Fourth Industrial Revolution, Odisha’s proactive policies, sectoral strengths, and digital ambition position it as a frontrunner in shaping the future of smart manufacturing. The insights and recommendations in the report aim to guide stakeholders across the ecosystem in building a resilient, tech-enabled, and globally competitive manufacturing landscape.
