VDMA India’s Role in Shaping the Future of Intelligent Manufacturing

What does “intelligent manufacturing” mean to you, and how is your organization contributing to this transformation?

Intelligent manufacturing is where data, automation, and human expertise come together to create agile, sustainable, and self-optimizing production systems. It’s about machines that adapt, supply chains that respond in real time, and operations aligned with both business goals and environmental responsibility.

At VDMA, we see ourselves as facilitators of this transformation. Representing over 3,600 German engineering companies, we help bring advanced German technologies — from AI-driven CNC systems to digital twins and green machining — into the Indian manufacturing ecosystem.

Through bilateral events, technology symposiums, and knowledge platforms, we support India’s journey toward smart manufacturing. In fact, German machinery exports to India reached €4.9 billion in 2024, underscoring the growing collaboration in high-end solutions.

For us, intelligent manufacturing is not just about innovation — it’s about impact. And we’re proud to help shape an ecosystem where technology, sustainability, and skills development move forward together.

Can you share a recent breakthrough or initiative that helped empower your customers or channel partners in a significant way?

At VDMA India, our role goes beyond being a trade association — we act as ecosystem enablers, helping Indian manufacturers and partners access the latest in German technology, thought leadership, and global visibility.

In recent times, we’ve introduced several impactful initiatives. Our technology symposiums on themes like Smart Manufacturing, OPC UA, and Robotomation have sparked meaningful collaborations between German OEMs and Indian end-users. At the same time, our sector-specific technical reports provide deep insights into trends like energy-efficient machining, AI integration, and export readiness — tailored for the Indian context.

Another key platform has been our “India Day” showcases at international exhibitions such as Automatica and Hannover Messe. These bring Indian manufacturing capabilities onto the global stage, encouraging cross-border partnerships and enhancing the visibility of Indian suppliers within global value chains.

What ties all these efforts together is our focus on knowledge transfer, capability building, and co-creation. Whether it’s a small MSME adopting digital retrofitting or a large firm exploring green machining, we aim to empower every stakeholder to thrive in the evolving landscape of intelligent manufacturing.

How is your company embracing sustainability in machining – from materials to energy and lifecycle design?

Sustainability is no longer optional — it’s central to the future of manufacturing. VDMA member companies are leading this shift by embedding sustainability across the machining lifecycle: from materials and energy use to waste reduction and product design.

For instance, modern German machine tools today consume up to 30–40% less energy compared to previous generations, thanks to advances in servo drive systems, predictive controls, and dry machining. These technologies are increasingly being introduced to the Indian market through our member companies and strategic partnerships.

At VDMA India, we support this transition by organizing forums on green machining, facilitating knowledge exchange on circular economy practices, and publishing technical papers on resource-efficient manufacturing. Our recent reports also explore how digital tools — such as digital twins and energy monitoring systems — can reduce both operational costs and carbon footprints.

India imported over €300 million worth of machine tools from Germany in 2024, much of it comprising energy-efficient, digitally integrated equipment. This reflects not just a trade relationship, but a growing alignment of sustainability goals between our two countries.

We believe that embracing sustainability — especially in machining — is key to remaining competitive, compliant, and credible in global markets. And through VDMA’s Indo-German network, we are helping Indian industry make that shift with confidence and clarity.

What role are MSMEs and local suppliers playing in your machine tool ecosystem, and how are you enabling their growth?

MSMEs are emerging as critical enablers of agility, customization, and localized innovation in the machine tool ecosystem. Their growing participation in precision part manufacturing, automation retrofits, and digital integration is helping reshape supply chains to be more responsive and future-ready.

At VDMA India, we are supporting this evolution by facilitating long-term partnerships between MSMEs and German technology providers, sharing technical know-how, and enabling access to global platforms. As German OEMs expand their supplier networks in India, especially in sectors like automotive and general machinery, the scope for MSME collaboration is widening rapidly.

Looking ahead, India’s machine tool sector is projected to grow at a CAGR of over 7% between 2027 and 2030, with MSMEs playing a decisive role in meeting both domestic and export demands. With the right support in quality standards, digital capability, and sustainability practices, we believe MSMEs will not just integrate into global value chains — they will help define them.

How do you see digital technologies (like AI, IoT, or digital twins) redefining machine tool applications in the next 3–5 years?

Digital technologies are set to radically transform machine tool applications by making them more intelligent, autonomous, and connected. In the next 3–5 years, AI will play a pivotal role in enabling self-optimizing machining processes — from adaptive cutting strategies to predictive maintenance that minimizes unplanned downtime.

IoT will further enhance machine connectivity, allowing for real-time performance monitoring, remote diagnostics, and data-driven process improvements across production lines. Digital twins will become essential tools for simulation, process validation, and virtual commissioning — significantly reducing development cycles and cost.

These technologies are moving machine tools from static systems to dynamic platforms that learn and evolve. With increasing demand for flexibility, traceability, and energy efficiency, such digital integration will be vital, especially in high-precision and high-mix manufacturing.

By 2030, it is projected that more than 50% of all new machine tools globally will come equipped with some form of digital augmentation — whether through embedded sensors, AI-based process control, or virtual modelling capabilities — redefining competitiveness in the industry.

Talent is a core driver of future-ready manufacturing. How are you re-skilling or upskilling your workforce for the new era?

The shift to future-ready manufacturing is as much about people as it is about technology. As machine tools evolve to become more intelligent and interconnected, there is a growing demand for talent that can work across disciplines — combining engineering fundamentals with digital fluency, data interpretation, and sustainable thinking.

By 2030, it’s projected that over 40% of roles in the manufacturing sector will require significant upskilling or re-skilling, particularly in areas such as automation control, digital twins, and smart maintenance systems.

At VDMA India, we are committed to supporting this transformation. Through our technical workshops, expert-led seminars, and collaborative training initiatives, we help industry professionals stay aligned with global trends. We also work closely with German and Indian stakeholders to promote structured learning models that foster both technical depth and hands-on capability.

The future of manufacturing will increasingly rely on a workforce that can adapt quickly, apply digital tools effectively, and align with global quality and sustainability standards. Building that talent pipeline is not just necessary — it is strategic.

What values or leadership principles guide your decision-making in balancing innovation, business growth, and social impact?

For me, effective leadership lies in aligning progress with purpose. In today’s dynamic manufacturing environment, decisions must be guided not only by profitability and technological advancement, but also by long-term impact — on people, the environment, and the industry at large.

Three core principles guide my decision-making. First, ecosystem thinking — recognising that innovation doesn’t happen in silos. It requires collaboration across companies, sectors, and borders. Whether we’re enabling German-Indian technology partnerships or supporting MSME capability building, we prioritize collective growth over isolated gains.

Second is responsible innovation — ensuring that new technologies we promote or adopt are scalable, ethical, and mindful of environmental outcomes. In manufacturing, this means integrating digital tools and green practices not as an afterthought, but as part of the design logic.

And third, human capital stewardship — because no innovation is sustainable without investing in people. As we embrace smart machines and AI, we must also build inclusive platforms for skills development, social mobility, and workforce transformation.

Balancing innovation, business growth, and social impact is not a trade-off — it’s a leadership imperative. Especially in the context of India’s fast-evolving industrial landscape, I believe that purposeful leadership will define competitive advantage in the years ahead.

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