2023 · Paper IV · 10 marks

What is meant by 'Industrial Revolution 4·0' ? Assess the likely impact of the fourth industrial revolution on India's manufacturing sector. Provide a brief note on the 'Production-Linked Incentive' (PLI) schemes in India.

In short

Industry 4.0 is the digitisation and automation of manufacturing through IoT, AI, cloud computing and cyber-physical systems, which can raise Indian productivity but strains MSMEs lacking digital infrastructure and skills. The PLI scheme, with Rs 1.97 lakh crore across 14 sectors, has created over 12.6 lakh jobs.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
The Fourth Industrial Revolution (Industry 4.0) integrates digital, physical, and biological technologies to revolutionize manufacturing. India’s PLI scheme complements this by incentivizing production growth, with Andhra Pradesh321’s economy growing faster than the national average, highlighting regional potential.
Institutional Framework and Capacity
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Industry 4.0 Scope

Technologies like IoT, AI, cloud computing, and cyber-physical systems enable smart factories optimizing real-time production.

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Government Initiatives

SAMARTH Udyog Bharat 4.0 and the ₹1.97 lakh crore4 PLI scheme target 14 sectors, including electronics and pharmaceuticals, attracting ₹1.61 lakh crore investments nationally by 2024.

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Andhra Pradesh’s Role

The Visakhapatnam-Chennai industrial corridor and port-led industrialization provide a strong base for Industry 4.0 and PLI benefits.

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Capacity Building

PLI fosters large-scale manufacturing infrastructure essential for Industry 4.0 adoption.

Implementation Challenges and Outcomes
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Technology Barriers

Many MSMEs lack digital infrastructure and skilled workforce, limiting Industry 4.0 scalability.

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PLI Outcomes

The scheme created over 12.6 lakh jobs and boosted electronics production by 146% from FY 2020-21 to FY 2024-25.

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Regional Disparities

Andhra Pradesh’s 9.24% GSDP growth vs 6.4% national average shows uneven but promising regional uptake.

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Policy Coordination

Union-state alignment and Andhra Pradesh’s participation in the National Manufacturing Mission65 enhance PLI effectiveness.

Way Forward
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MSME Digitalisation

Targeted support for MSMEs to adopt Industry 4.0 technologies is crucial.

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Skill Development

Expand reskilling aligned with Industry 4.0 demands.

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Infrastructure

Develop industrial corridors and digital connectivity, especially in Andhra Pradesh’s port zones.

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Inclusive Growth

Design PLI policies to promote sustainability and equitable regional development.

Conclusion
Industry 4.0 and PLI schemes offer transformative potential for India’s manufacturing, requiring focused efforts on technology, skills, and infrastructure to maximize benefits.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: Industry 4.0 in Indian manufacturing. Industry 4.0 in Indian manufacturing. Diagram (forcefield): Industry 4.0 in Indian manufacturing; Industry 4.0 adoption; smart factories; SAMARTH Udyog; corridors; PLI; MSME digital gaps; skill shortages; shifting jobs
Diagram: Industry 4.0 in Indian manufacturing

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Industrial Development and Policy (India)12 questions

Asked in 5 of 8 sittings since 2008

2008
1
2011
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2012
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2016
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2017
2
2020
4
2023
2
2025
3

Most tested: Manufacturing-led industrial policy reform and its policy instruments.

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Question from the official APPSC Group-I Mains 2023 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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