Industrial Revolution 4.0

Mains Marks Booster     5th August 2023        


  • The concept of 'Industry 4.0' was initially formulated by the German government back in 2011.
  • Industry 4.0 signifies a novel stage in the Industrial Revolution, concentrating mainly on intercommunication, automation, application of machine learning, and instantaneous data.
  • Industry 4.0 integrates the Industrial Internet of Things (IoT) and smart manufacturing, merging physical procedures and production with intelligent digital technologies, machine learning, and extensive data.
  • Objective: To develop a comprehensive and more interconnected ecosystem for businesses that are centered around manufacturing and supply chain management.
  • Companies and organizations today face a common challenge: the need for interconnectedness and real-time data across processes, partners, products, and personnel. This is where Industry 4.0 becomes crucial.
   Industrial Revolution

Fourth industrial revolution in india: status

  • The digital economy is projected to reach $1 trillion by 2025, contributing around 25% of India's GDP. (Source: McKinsey Global Institute).
  • Industry 4.0 technologies have the potential to create 90 million jobs in India by 2030. (Source: BCG and World Economic Forum).

Challenges to the 4th industrial revolution

  1. Cybersecurity issues: The increased connectivity in this revolution exposes vulnerabilities to cybersecurity threats.
  2. Reduction in low-skill jobs: Automation and artificial intelligence technologies can replace repetitive and manual tasks, resulting in a shift in the workforce and potentially fewer opportunities for low-skill jobs.
  3. Industry and market disruption: Companies that fail to adapt and embrace innovation may struggle to survive in the new competitive landscape.
  4. Rise in social inequalities: This can lead to heightened social tensions and widen the gap between different socio-economic groups.

Challenges specific to India

  • Infrastructure and connectivity: Insufficient power supply and high-speed internet, especially in rural areas, limit digital infrastructure. Skilled workforce development is crucial.
  • Data quality: Inconsistent standards and a significant informal sector affect the reliability and accuracy of data, impacting decision-making and policy implementation.
  • Limited research and development: India's inadequate investment in R&D hampers innovation and the ability to address challenges and opportunities in the Fourth Industrial Revolution.

Steps taken by the Government

  • SAMARTH Udyog Bharat 4.0 Initiative
  • It is an Industry 4.0 initiative by the Department of Heavy Industry, Ministry of Heavy Industry & Public Enterprises.
  • The goal is to establish an ecosystem for the adoption of Industry 4.0 technologies in Indian manufacturing by 2025, including MNCs, large, medium, and small-scale Indian companies.
  • Centre of Excellence (CoE) on IT for Industry 4.0
  • The CoE serves as a knowledge center for entrepreneurs and startups, promoting the concept of IT and its application in the Fourth Industrial Revolution (IR 4.0).
  • Centre for Fourth Industrial Revolution
  • World Economic Forum has established its fourth Center for Fourth Industrial Revolution in Mumbai, India.
  • This center will collaborate with NITI Aayog (National Institution for Transforming India) to co-design new policies and protocols for emerging technologies.
  • National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS)
  • Launched by the Union government in 2018 and implemented by the Department of Science & Technology.
  • The mission addresses society's technological needs and considers international trends and roadmaps for next-generation technologies.
  • National Strategy on Artificial Intelligence
  • NITI Aayog has adopted a three-pronged approach under the strategy:
  • Undertaking exploratory proof-of-concept AI projects in various areas
  • Crafting a national strategy for building a vibrant AI ecosystem in India
  • Collaborating with experts and stakeholders

Way Forward

  • Foster international collaboration: 
    • A joint platform between ministries, state governments, and industry bodies can be considered.
  • Promote industry-academia collaboration 
    • Introduce a compulsory apprenticeship program at the higher secondary level to provide hands-on experience in technology.
  • Increase investments.
  • Focus on improving productivity: Embrace digitalization by fostering competitive advantages along value chains. Prioritize productivity and address productivity gaps to enhance global competitiveness.


  • The Fourth Industrial Revolution offers more than just technological advancements; it presents an opportunity to create an inclusive, human-centred future.
  • It is essential for leaders, policymakers, and people from all income groups and nations to harness converging technologies for positive impact.
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