"India is one of the fastest growing industrial nations in the world," says Marina Bill, President of the International Federation of Robotics. "Within five years, the operational stock of industrial robots has more than doubled, reaching a total of 33,220 units in 2021. This corresponds to an average annual growth rate of 16% since 2016."

In terms of manufacturing output, India is now the fifth largest economy in the world. According to the World Bank, the value added by the Indian manufacturing sector amounted to USD 443.9 billion in 2021. This corresponds to an increase of 21.6% compared to the previous year.

The automotive industry remains the largest customer for the robotics industry in India with a market share of 31% in 2021. The number of installations has more than doubled to 1,547 units (+108%). The general industry in India is led by the metal industry with 308 units (- 9 %), followed by the rubber and plastics industry with 246 units (+ 27 %) and the electrical/electronics industry with 215 units (+ 98 %).

Strong growth potential

The long-term potential for robotics in India can be illustrated with a comparison to China: India's robot density in the automotive industry, i.e. the number of industrial robots per 10,000 employees, will reach a total of 148 units in 2021. China's robot density was 131 units in 2010 and rose sharply to 772 units by 2021.

The Indian government supports the growth of the industrial sector as one of the most important factors influencing gross domestic product (GDP). As reported by the International Monetary Fund, the country's GDP is now fifth in the world at around USD 3 trillion, neck-and-neck with the UK and France - behind Germany, Japan, China and the US.

Popular destination for nearshoring

Following the experience of the recent disruptions to international supply chains, companies are rethinking their nearshoring strategies in South East Asia. "India has traditionally been a popular destination for nearshoring in the manufacturing sector. The Indian government aims to be considered by foreign companies for new diversification options, for example as a partner in so-called friendshoring as a country that shares similar values and interests," says Marina Bill.

The manufacturing sector should also benefit from the government's initiatives to increase India's competitiveness and attractiveness for investors. The Production-Linked Incentive (PLI) program, for example, runs until 2025 and subsidizes companies that create production capacities in India in robotics customer industries. These include, for example, the automotive, metal, pharmaceutical and food industries.