Robotics in India: Unlocking Productivity Gains

Robotics has transformed significantly for Indian startups over the past five years. Once perceived as technically challenging and expensive, this sector is now thriving.

The robotics surge in India is driven by startups and is being developed in various environments such as warehouses, factories, hospitals, and farms.

As India transitions from a $4 trillion to a $10 trillion economy over the next 15 years, its growth will rely significantly on digitising workflows and automating logistics and service delivery systems.

Robotics as a Cornerstone of India’s Productivity Leap

Robotics is rapidly moving from a specialised area to a fundamental pillar of productivity that will define India’s next phase of economic growth.

Investors are keenly aware of the opportunities, as India can prototype solutions at a fraction of the cost and implement them at an accelerated pace compared to Western counterparts.

The first wave of robotics startups is demonstrating that high-quality automation can be developed, tested, and scaled effectively from within India.

Global Robotics Market at a Crossroads

The global market for robotics surpassed $74 billion in 2024 and is expected to exceed $280 billion by 2032, with a compound annual growth rate (CAGR) of over 18%.

Approximately 70% of all industrial robots were installed in Asia last year, primarily in China, Japan, and South Korea. India currently stands at seventh place but boasts the fastest growth rate globally, with a remarkable 59% increase in installations in 2023.

The main factors driving this growth include lower hardware costs (which have decreased by 25% over the last ten years), software-driven orchestration, and the adoption of “Robotics-as-a-Service” (RaaS) models that make automation accessible.

Moreover, advancements in artificial intelligence related to perception, navigation, system design, and fleet management have shortened learning cycles, evolving robots into intelligent systems.

Transformative Effects of Software and AI

This mix of cost efficiency, advanced software, and AI is what has allowed Western leaders like ABB, Fanuc, Ocado, and Intuitive Surgical to shift robots from being mere novelties to essential tools. India is now following a similar path.

India’s Significant Robotics Potential

Since 2018, India’s number of industrial robots has nearly doubled, reaching about 45,000 units with an annual growth rate of 14%.

Despite this growth, the robot density in India stands at just 7 units per 10,000 manufacturing workers, which is well below the global average of 141. This gap indicates a substantial opportunity for further development.

The Indian robotics sector was valued at $1.2 billion in 2023, covering fields like automotive, logistics, and pharmaceuticals, and it is anticipated to grow at a minimum of 16% annually this decade.

This optimism is reflected in funding, with robotics startups securing $117 million in 2024—a more than fourfold increase over two years.

Emerging Leaders in the Robotics Space

Innovative companies such as Unbox Robotics, CynLr, Sastra Robotics, and Flux Auto represent a new breed of Indian entrepreneurs merging hardware expertise with software capabilities.

These founders are tackling India’s challenging operational realities, including physical limitations, unpredictable labour markets, demanding clientele, and cost-aware customers, while creating products that can be exported globally.

Segments for Competitive Advantage

The robotics landscape in India comprises various sectors, each offering unique investment opportunities:

Warehouse Automation

The warehouse automation market stands at $800 million and is projected to reach $2.5 billion by 2030. Companies like Unbox Robotics are developing comprehensive sorting and logistics platforms to cater to ecommerce, third-party logistics (3PL), and retail, with future efforts focusing on specialised warehouses in areas such as pharmaceuticals, cold-chain, and direct-to-consumer distribution.

Assembly and Manufacturing

While India has a broad industrial base, it remains under-automated. Collaborative robots (cobots), vision-enabled pick-and-place systems, and retrofit quality assurance (QA) systems can enhance efficiency in Tier-II and Tier-III factories poised for growth. Affordable and programmable robotics that complement skilled workers can lead to significant productivity improvements.

Medical and Assistive Robotics

This sector currently valued at $1.3 billion is expected to reach $8 billion by 2035. Indian startups are already commercialising surgical technology (SS Innovations), patient monitoring solutions (Dozee), and bionic systems (Aether Biomedical) at merely one-third of the costs seen globally. Robotics addresses significant challenges in clinical capacity and patient management.

Surveying and Construction

From Aereo’s aerial drones to Planys’ underwater robotics, India is driving innovation in surveying automation across mining, infrastructure, and utility sectors. In construction, task-specific robots designed for jobs like bricklaying and inspection are poised to serve both domestic and international markets.

Agriculture

Affordable, compact field robots, exemplified by Flux Auto’s tractor automation technology, cater to India’s unique challenges, such as small landholdings and variable power supply. These solutions are also scalable across regions like Africa and Southeast Asia.

Policy Support Driving Growth

The Indian government’s supportive policies are propelling the robotics sector forward:

• Production-Linked Incentive (PLI) schemes now encompass 14 sectors, including automotive and electronics, both vital for robotics production.
• The Semicon India initiative, with a $10 billion investment, aims to strengthen the local supply chains for chips, sensors, and controllers.
• The Draft National Robotics Strategy (MeitY, 2024) focuses on manufacturing, healthcare, agriculture, and defence while recommending a twin governance structure to connect research and development with commercial applications.
• Initiatives like SAMARTH Udyog Bharat 4.0 and NAMTECH are providing training to micro, small, and medium enterprises (MSMEs) and workers in robotics integration and operating systems expertise.

For the first time, there is cohesion among India’s policies regarding robotics, industrial growth, and digital infrastructure, fostering an environment conducive to large-scale innovation and adoption.

Building Automation Leaders in India

The founders of robotics companies in India are focused on creating practical solutions designed for real-world challenges rather than mere exhibits. They are constructing the automation foundations needed to support India’s quest for a $10 trillion economy. To facilitate this shift, five key design principles should be embraced:

• Design for limitations and global relevance by creating robust systems that perform well under unpredictable conditions, which can then be exported.
• Focus on return on investment (ROI) by identifying use cases where automation directly enhances profitability, such as sorting, quality assurance, assembly, and agricultural efficiency.
• Explore varied business models including leasing, pay-for-use, and RaaS as viable alternatives to traditional hardware sales.
• Develop cohesive systems teams that integrate mechatronics, AI, and deployment operations into streamlined and agile processes. Customer support and sales should emulate successful software-as-a-service models.
• Leverage India as both a testing ground and a launchpad for global markets, with successful strategies applicable throughout the Global South and increasingly to mid-market OECD enterprises.

A Long-Term Focus on Physical Productivity

Robotics is now viewed as vital for India’s productivity, competitiveness, and industrial independence. The country’s distinctive combination of scale, software skills, hardware design knowledge, and cost-effectiveness provides a strong platform to excel in the advancement of physical automation.

As India inches closer to achieving its $10 trillion GDP target, robotics will serve as a key link between its manufacturing goals and digital economy. For entrepreneurs, this represents a once-in-a-lifetime opportunity to establish lasting enterprises.

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