India's industrial manufacturers accelerate AI adoption, KPMG report finds

The KPMG Global Tech Report 2026 for Industrial Manufacturing, based on responses from 258 technology leaders in 22 countries, highlights a rapid shift toward artificial intelligence in India’s industrial sector. Executives report that 87% believe advanced technology will drive future competitive advantage, 68% expect to deploy AI at scale within the next year and 48% plan to increase cybersecurity spending. Companies are moving from experimentation to large‑scale AI projects focused on operational efficiency, predictive maintenance, quality control and supply‑chain optimisation. The report notes challenges such as unreliable data, talent shortages and legacy systems, urging firms to strengthen data foundations, upskill workforces and embed responsible AI practices. "Industrial manufacturing organisations are increasingly wanting to leverage technology as a force multiplier aligned with business strategy to unlock significant value," said S Sathish, KPMG’s Partner and National Sector Leader for Industrial Manufacturing in India.

The findings suggest Indian manufacturers are well‑positioned to capitalize on government incentives and growing ecosystem partnerships, with cross‑functional collaboration between IT, business and risk functions becoming a norm as they pursue resilience and long‑term growth.