Abstract

Smart Manufacturing Technologies (SMTs) are transforming global industrial systems through automation, artificial intelligence, and the Internet of Things (IoT). India’s automotive industry, one of the largest in the world, is at the forefront of this transformation. This paper provides a macro-level economic evaluation of SMT adoption in India’s automotive manufacturing sector using real data from the Society of Indian Automobile Manufacturers (SIAM) and the World Bank for the period FY2019–20 to FY2024–25.
In addition to traditional automation and IoT systems, the study highlights the emerging role of Large Language Models (LLMs) as the next frontier of smart manufacturing intelligence. LLMs—core components of Generative Artificial Intelligence—can interpret unstructured industrial data, support predictive maintenance, automate documentation, and enhance decision-making through natural language reasoning. The paper introduces a conceptual framework for integrating LLM-driven analytics into smart manufacturing processes, demonstrating how these models can amplify the efficiency, adaptability, and traceability of industrial operations.
The results indicate that while initial investments in smart technologies are substantial, they yield long-term productivity and competitiveness gains. By extending the analysis to include LLM-enabled intelligence, the study finds that AI-driven process optimization could further enhance manufacturing value added and export competitiveness. The paper concludes that government incentives, digital infrastructure, and workforce upskilling—combined with strategic adoption of LLMs—are essential for maximizing the benefits of smart manufacturing in India’s automotive industry.