To achieve its ambition of becoming a global manufacturing hub, Indian enterprises, particularly micro, small and medium enterprises, need to adopt technologies that improve productivity, quality, flexibility and competitiveness, according to a report launched by CSB Bank in partnership with the Knowledge Chamber of Commerce & Industry.
The report titled ‘Edge AI – The Next Frontier in India Manufacturing’ said that while Industry 4.0 laid the foundation for connected manufacturing through automation, sensors, cloud computing and data analytics, the next phase of transformation will be driven by Edge Artificial Intelligence.
Edge AI refers to the deployment of artificial intelligence models directly on devices where data is generated, enabling faster processing and decision-making without relying heavily on cloud infrastructure.
According to the report, Edge AI enables intelligent decision-making at the source of data generation. By combining artificial intelligence with edge computing, the technology offers greater speed, reliability and operational efficiency.
The report highlighted how Edge AI is emerging as a key driver of change in Indian manufacturing. It explained how the technology differs from traditional cloud-based AI models and outlined its advantages in industrial environments where real-time decision-making, operational continuity, data privacy and cost efficiency are critical.
It further noted that affordable deployment models and scalable implementation approaches can help manufacturers of all sizes adopt advanced technologies and accelerate their digital transformation efforts.
The report identified several high-impact use cases for Edge AI, including predictive maintenance, quality inspection, worker safety, energy management, inventory control, and production optimisation.
Sector-specific analysis showed that industries such as automotive and auto components, textiles and apparel, pharmaceuticals, food processing, electronics manufacturing, metals and engineering goods stand to benefit the most from Edge AI adoption.
Beyond technology, the report also examined the economics of Edge AI implementation, including investment requirements, return-on-investment drivers, operational benefits and long-term business value for manufacturers.