How Manufacturing 5.0 in Telangana can accelerate industrial transition

Explore Telangana's transition to Manufacturing 5.0 through human-centric innovation, advanced AI, and sustainable practices.

In brief

• By embracing the principles of Manufacturing 5.0, Telangana can position itself as a leader in sustainable industrial growth.
• The future of manufacturing in India depends on upskilling workers, integrating AI or cobots, and fostering public-private partnerships for scalable growth.
• The roadmap emphasizes pilot projects, ethical AI adoption, and achieving global sustainability.

The global manufacturing landscape is undergoing a seismic shift as we transition from Industry 4.0 to Industry 5.0. While Industry 4.0 focused on industrial automation, data exchange, and smart technologies like IoT and AI, Industry 5.0 takes it a step further by emphasizing human-centric innovation, sustainability, and resilience.

For Telangana, a state that has emerged as a manufacturing powerhouse in India, this evolution presents an opportunity to not only stay ahead of the curve but also to redefine its industrial ecosystem. By embracing the principles of Manufacturing 5.0, Telangana can position itself as a leader in sustainable and inclusive growth.

Analyzing the promise of Industry 5.0

Industry 5.0 is more than just an incremental upgrade—it represents a paradigm shift in how industries operate. At its core, Industry 5.0 seeks to harmonize advanced technology with human creativity and collaboration. It focuses on three key pillars:

• Human-centric innovation: Unlike Industry 4.0, which prioritized machines and automation, Industry 5.0 places humans at the center of production processes. This ensures that technology serves as a tool to enhance human capabilities rather than replace them. Telangana’s focus on skilling workforce for Industry 5.0, with an emphasis on human-machine collaboration, aligns with this principle.
• Sustainability: With climate change becoming a pressing concern, Industry 5.0 integrates eco-friendly practices into manufacturing processes, promoting circular economies and reducing carbon footprints. Telangana’s commitment to net zero by 2047, along with incentives like a 15% floor area bonus for MSMEs adopting green manufacturing initiatives, reinforces this approach.
• Resilience: The disruptions caused by the pandemic highlighted the need for robust supply chains and adaptable systems. Industry 5.0 focuses on creating resilient ecosystems capable of withstanding future shocks. The Telangana MSME Development Plan (2024-2029), with an investment of INR4,000 crore and a target of 25,000 new MSMEs, will be instrumental in fostering economic resilience.

Adopting these principles could unlock unprecedented economic and social benefits while addressing challenges such as skill gaps, environmental degradation, and supply chain vulnerabilities.

EY Industry 5.0 Framework

To navigate the complexities of this transformation, the EY Industry 5.0 Framework provides actionable insights across the below critical dimensions for success:

• Technology integration: Leveraging AI, robotics, and digital twins to create smarter factories. Hyderabad is positioning itself as India’s AI capital, with AI adoption already driving efficiency in pharmaceutical manufacturing.
• Workforce empowerment: Upskilling workers to thrive in tech-driven environments. Telangana has established T-Hub, We Hub, and RICH to accelerate reskilling workforce for Industry 5.0 and innovation.
• Sustainable practices: Implementing green manufacturing initiatives and renewable energy solutions. New industrial parks in Hyderabad will not use coal as a primary energy source.
• Collaborative ecosystems: Building partnerships between government, academia, and private players. Telangana’s Yantram Fund (INR100 crore over four years) will support technology transformation in MSMEs.
• Agile operations: Designing flexible systems that adapt quickly to market changes, enabling greater responsiveness and efficiency in manufacturing.

By aligning its policies and initiatives with this framework, Telangana can ensure a smooth and impactful Industry 5.0 transformation.

A deep dive into Telangana’s manufacturing sector

Telangana has already made significant strides in establishing itself as a hub for manufacturing excellence. The state’s strategic location, robust infrastructure, and investor-friendly policies have attracted global giants across sectors such as pharmaceuticals, electronics, textiles, and automotive. Hyderabad, the capital city, is often referred to as "Cyberabad" due to its thriving IT and manufacturing industry.

However, challenges remain. These include:

• Limited adoption of cutting-edge technologies continues to hinder MSME technology adoption.
• A widening skills gap amidst rapid technological advancements.
• Environmental concerns stemming from traditional manufacturing practices.

To counter these, the Yantram Fund will operationalize within six months to drive collaboration and innovation across enterprises in Telangana.