AI-Powered Quality Control in Indian Manufacturing: Cutting Defects and Boosting Profits
Indian manufacturing continues to grapple with significant losses caused by defects, rework, and product returns, which weaken profitability and competitiveness. As per an industry report, in FY22, the total return order volume in India stood at 14.86%. Furthermore, high-volume industries such as automotive, FMCG packaging, textiles, and electronics are particularly exposed, where even a small defect rate can translate into substantial financial setbacks. Industry research states that in mature operations, the Cost of Poor Quality (COPQ) can account for as much as 15–20% of total sales. Moreover, Return Prime’s recent report shows that returns remain a major challenge in e-commerce sales, with 17.6% of all orders being sent back. The issue is even more pronounced in fashion and footwear, where return rates can climb to 30–35%, accounting for more than a third of products in these categories.
Below is an analysis of how AI-powered quality control is reshaping Indian manufacturing in 2025, with a focus on its impact across industries. The discussion evaluates the scale of quality-related losses, the limitations of traditional inspection methods, and the measurable gains in efficiency, cost savings, and customer satisfaction achieved through AI adoption. It also highlights adoption challenges and government initiatives, with a focus on how various technologies are enhancing competitiveness and profitability.
1. Issues with Traditional Quality Control:
- Manual inspection is slow and inconsistent: The heavy dependence of Indian factories on manual inspection slows production, creates inconsistency, and leads to missed defects. Studies indicate that up to 30% of defects are missed due to fatigue or distraction of the human inspectors. Defective items frequently reach customers, triggering complaints or costly recalls. With recalls averaging USD 10 Million and 32% of consumers abandoning brands after one bad experience, poor quality control directly impacts profitability and reputation.
- Outdated inspection equipment: A large number of plants rely on legacy machinery or simple visual checks, which are limited in their ability to identify micro-defects or subtle deviations that can compromise product reliability.
- Shortage of skilled inspectors: Indian manufacturers face a shortage of skilled quality inspectors, with limited talent and high attrition in industrial hubs. This forces many plants to depend on less experienced workers, raising the risk of errors and compromising product quality.
- Cost-pressure trade-offs: In a price-sensitive market, many manufacturers compromise on inspection stringency to cut costs, which increases the risk of defects slipping through.
- Pressure of compliance and exports: Export-focused manufacturers face strict global quality standards, yet traditional inspection methods often fail to meet them, limiting market access. A study revealed that generic drugs made in India showed 54% higher severe adverse events than U.S.-made counterparts, highlighting how weaker inspections, cost pressures, and limited regulatory transparency undermine trust in product quality.
2. What is AI-Powered Quality Control?
AI-powered quality control refers to a technology-driven approach that applies computer vision, machine learning, and connected sensors to detect defects during manufacturing automatically. Unlike manual checks, these intelligent systems analyze products in real time, ensuring consistent accuracy throughout production. A study showed that AI-based visual inspection systems deliver up to 40% better defect detection, strengthening India’s export competitiveness. By continuously learning and adapting, they identify even subtle variations, making them more reliable and scalable than traditional inspection methods.
3. How does AI impact ROI for Indian Manufacturers?
AI is emerging as a strategic enabler in manufacturing, directly influencing profitability. TeamLease data revealed that overall AI adoption across industries reached 48% in FY2024, with manufacturing usage increasing sharply from 8% to 22% within a year. Some of the factors impacting the uptake of AI in ROI for Indian manufacturers:
- Reduced wastage: According to the World Economic Forum, AI-powered factories have recorded 12.5% lower material costs, 66% fewer defects, and up to 20% faster cycle times, setting new standards for efficiency. By detecting flaws early in the production process, AI prevents defective units from progressing further, cutting down on scrap and rework while saving both raw materials and labor hours.
- Better predictive maintenance: Industry report showed that using IoT sensors, AI-driven predictive algorithms, and vision systems has helped automotive firms cut machine breakdowns by 20%, promote efficiency by 15%, and reduce defects by 25%. By tracking equipment in real time and spotting early wear, AI enables proactive maintenance, preventing costly breakdowns and keeping operations smooth.
- Improved customer satisfaction: An industry analysis found that 44% of automotive and manufacturing leaders see AI as “highly important,” while 49% call it “absolutely critical” for success. By enabling smart manufacturing, stronger supply chains, and higher product quality, AI reduces defects, lowers returns and warranty claims and strengthens customer trust.
- Faster market readiness: As per NASSCOM’s April 2025 Smart Factory Index, Indian enterprises that adopted AI-powered automation reported up to a 45% improvement in Overall Equipment Effectiveness (OEE), 30% shorter cycle times, and 25% fewer unexpected stoppages.
4. Industry Examples in India:
- Automotive: AI in automotive quality checks significantly improves defect detection, establishing a benchmark for predictive and globally competitive manufacturing. For example, BMW reported a 60% defect reduction achieved through real-time vision, predictive maintenance, and continuous learning, transforming quality management from reactive inspection to proactive prevention.
- Textile: AI vision tools detect weaving defects and color mismatches early, helping prevent large-scale quality issues. As such, with Robro Systems’ Kiara Vision AI, a leading FIBC manufacturer in India achieved a 50% reduction in defect rates and a 20% increase in production efficiency.
- Electronics: Manufacturers are increasingly using AI for circuit board inspection and component testing to enhance reliability and minimize faulty shipments. In accordance with this, Productronica India 2025 (Sept 17–19, Bengaluru) will feature TRI’s AI-powered inspection solutions, including 3D SPI, AOI, and AXI systems, designed for smart factory readiness, data traceability, and full Industry 4.0 compliance.
- Pharmaceuticals: AI systems ensure compliance with strict regulatory standards by verifying labelling, dosage accuracy, and packaging integrity. A study in the International Scientific Journal of Engineering and Management reported 92% accuracy in individualized drug dosage prediction using a hybrid machine learning–reinforcement learning framework with real-time adjustments.
5. Challenges in AI Adoption:
- High implementation costs: AI development costs vary significantly, ranging from around USD 5,000 for basic implementations to over USD 500,000 for advanced enterprise-level solutions. Such high upfront investments in AI systems, sensors, and infrastructure can be prohibitive, particularly for mid-sized manufacturers operating with tight margins.
- Data quality and availability: Numerous factories lack structured, high-quality production data, making it difficult to train AI models effectively and achieve reliable defect detection.
- Skill gaps in the workforce: India faces a severe AI talent gap, with only one qualified engineer for every 10 GenAI roles and just 49% of demand met, despite a 45% year-on-year surge in AI and data talent needs.
- Resistance to change: Manufacturers often hesitate to move away from traditional inspection methods due to fear of disruption, uncertainty about ROI, and a lack of awareness about long-term benefits.
6. Government Incentives:
- India AI Mission: The Cabinet approved INR 10,300 Crore for the IndiaAI Mission, funding 10,000 GPUs, startups, datasets, innovation centres, FutureSkills programs, and indigenous AI model development over five years.
- Electronics Component Manufacturing Scheme (ECMS): India’s INR 22,919 Crore ECMS (FY2025-26–2031-32) aims for INR 59,350 Crore investment, INR 4,56,500 Crore production, and 91,600 jobs, while promoting Six Sigma quality, AI adoption, and data-driven manufacturing with 350 AI Kosh datasets.
AI-powered quality control is reshaping India’s manufacturing sector, driven by rising global demand, supportive government policies, and rapid adoption of advanced technologies. From automotive and textiles to electronics and pharmaceuticals, manufacturers are achieving higher efficiency, reduced defects, and stronger compliance with global standards. By leveraging AI solutions alongside government incentives and Industry 4.0 initiatives, businesses can unlock new levels of productivity, profitability, and global competitiveness in India’s evolving manufacturing landscape.
Our Clients
Contact Us
Have a question or need assistance?
Please complete the form with your inquiry or reach out to us at
Phone Number
+91-120-433-0800+1-201-971-6302
+44-753-714-6104
Previous Post
Industry 4.0 has been a defining milestone in the advancement of manufacturing. It is responsible for introducing automation, digitization, and data-driven processes that significantly enhanced productivity and precision. Presently, India is moving into the next phase of manufacturing, that is, autonomous factories. Here, artificial intelligence (AI) goes beyond simple automation, enabling systems to render decisions, learn from changing conditions, and continuously improve operations. This shift has the potential to reshape industrial growth in the country and establish new standards for smart manufacturing.
Indian manufacturers are facing difficulties due to rising input costs, shortages of skilled labour, unplanned machine downtime, and inconsistent product quality. According to an industry report, during the July–September quarter of FY25, raw material expenses for 1,679 listed non-financial manufacturing companies increased by 5.1%, outpacing sales growth, which rose by only 3.3%. Similarly, the Global Talent Shortage Survey 2025 reported that 80% of Indian employers report difficulty finding skilled talent, compared to the global average of 74%, highlighting a severe talent crunch.
According to the International Energy Agency (IEA), global energy-related CO2 emissions grew by 0.8% in 2024 to a record 37.8 gigatonnes, driving atmospheric concentrations to an unprecedented 422.5 ppm. This has led to an increased urgency in addressing climate change. Similarly, the industries are facing unprecedented pressure to rethink their operations due to the energy demand rising by 2.2% in 2024, which is faster than the annual average of 1.3% witnessed between 2013 and 2023.
India is among the fastest-growing economies globally. The nation is currently the fourth-largest economy in the world and is on its way to becoming the third-largest, with an estimated GDP of USD 7.3 Trillion by 2030. This momentum is not only strengthening India’s economic resilience but also opening lucrative opportunities for businesses, investors, and technology providers aligned with the country’s growth vision.
The role of artificial intelligence (AI) in modern project management has transitioned from a theoretical concept to a strategic imperative. As businesses navigate increasingly complex projects in a data-driven world, AI is emerging as a powerful force for efficiency, accuracy, and innovation.
The artificial intelligence market is no longer niche. Current projections value the market at a significant level today, with strong growth expected as generative AI matures, computing costs decline, and enterprise pilots scale into full production.
The data center sector in Japan is at the epicenter of a tech revolution, wherein artificial intelligence (AI) is fundamentally redefining how digital infrastructure manages, scales, and adapts. With the country progressing toward digital transformation in various industries, AI has been the force behind unprecedented innovation in the design, management, and optimization of data centers.
In the modern era, the global video streaming market is fundamentally reshaping the entertainment landscape, driven by the dual forces of digitalization and the escalating demand for on-demand content. Artificial intelligence (AI) also serves as a pivotal catalyst for this growth, enabling the personalization of user experiences through tailored recommendations, improved content discovery, and enhanced audience engagement.
The global gaming console market is undergoing a significant transformation, fueled by the adoption of artificial intelligence (AI) and an increasing demand for interactive entertainment.
For decades, call centers have played a central role in customer service. Traditionally staffed with large teams of agents, they operated as cost-heavy units designed to handle inquiries, complaints, and service requests. While essential, this model was often associated with inefficiencies, long wait times, and high employee turnover.
According to IMARC Group, the global identity verification market was valued at USD 13.8 Billion in 2024 and is projected to reach USD 46.4 Billion by 2030, expanding at a CAGR of 14.4% during 2023–2030. This strong growth is being fueled by the increasing adoption of artificial intelligence (AI) and machine learning (ML), which are enabling higher levels of automation, fraud detection, and real-time authentication.
Japan is a leader in digital transformation, known for being one of the most advanced nations in technology globally. Artificial Intelligence (AI) is becoming an integral force across various sectors, and the telecom industry is no exception.
Generative AI is revolutionizing industries by bringing fresh, game-changing solutions that boost creativity and streamline workflows. Whether it’s automating content creation or optimizing complex processes in fields like healthcare and finance, AI is opening doors to exciting new possibilities.
The e-commerce market has undergone a seismic shift in the past twenty years. What started as simple, text-based product pages has grown into a complex web of intelligent platforms capable of customizing experiences for every individual user. At the core of this evolution is Artificial Intelligence (AI).
The global laptop and tablet market includes portable computing devices for both personal and commercial use, providing mobility, flexibility, and connectivity. Laptops extend desktop computers' power and functionality in a portable package, while tablets provide light-touch screen interfaces for consumption of media, creative work, and on-the-go productivity.
The global cloud gaming industry is experiencing an unprecedented surge, driven by technological advancements and evolving consumer preferences. As the market expands, Artificial Intelligence (AI) stands out as a pivotal force, reshaping every facet of the cloud gaming landscape, from infrastructure to player experience. It enables smarter resource allocation, real-time content personalization, latency reduction, and advanced game logic.
The global power bank market is experiencing steady growth as digital lifestyles become more integrated into everyday routines. With rising dependence on smartphones, tablets, laptops, and wearables, power banks have shifted from being simple backup batteries to versatile, feature-rich accessories that fulfill the needs of a wide range of users. Consumers now prefer power banks with fast-charging capabilities, higher battery capacity, and environmentally responsible designs.
The hybrid cloud market across the world has been changing at a very fast rate, with companies globally adopting the mix of on-premises and cloud-based infrastructures to fuel innovation and operational effectiveness.
Japan’s artificial intelligence (AI)-driven three-dimensional (3D) printing startups are redefining manufacturing by merging speed, sustainability, and precision. Japan’s additive manufacturing scene is moving beyond prototypes—it's rewriting how industries build, design, and innovate.
As a global leader in technology and innovation, Japan has increasingly recognized the critical importance of cybersecurity to protect its digital infrastructure.
Electric cables or power cables are the fundamental parts employed for the transfer of electrical power or signals over short and long distances. They generally comprise one or more conductors, typically composed of copper or aluminum, covered with insulating materials and protective sheaths. Electric cables, based on their use, differ in structure, including low-voltage, medium-voltage, and high-voltage power cables, control cables, instrumentation cables, or data transfer cables like fiber optics.
Smart Factory and Industry 4.0 Integration is a comprehensive set of services that helps firms overhaul their manufacturing processes by embracing new technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), robotics, big data analytics, and cloud computing.
Digitalization is reshaping the very essence of travel, transforming it into a more personalized, convenient, and efficient experience than ever before. With the growing popularity of travel platforms, travelers now have the power to plan and book their entire journey with just a few taps on their smartphones.
Product and facility certification support offers professional assistance to companies in resolving complicated processes of product certification and facility certification. Our services facilitate adherence to global standards and regulatory guidelines to ensure hassle-free market entry and operational continuity across global markets.
The global e-commerce landscape is rapidly transforming, propelled by several evolving e-commerce industry trends. These fundamental shifts encompass changes in consumer behavior, rapid technological advancements, and increasing internet accessibility worldwide. As a direct result, brands are now prioritizing quick delivery, mobile-centric platforms, and deeply customized digital experiences.
Setting up a drone manufacturing plant with a step-by-step business plan covering setup, costs, equipment, compliance, and market strategy.
India’s textile industry is undergoing a transformative shift led by the government’s visionary PM MITRA (Mega Integrated Textile Region and Apparel) Parks initiative. With a mission to establish India as a worldwide leader in textiles, this program is creating world-class integrated manufacturing zones that drive innovation, reduce production costs, and boost sustainability.
India’s sports technology sector is gaining extraordinary momentum, driven by the digitalization of sports leagues, enhanced fan engagement, and increasing investments in athletic performance solutions. With the Indian Premier League (IPL) 2025 poised to become the most tech-driven tournament to date, the market is no longer restricted to wearables and broadcasting; it now powers every aspect of sports, from grassroots training to AI-based strategic decision-making.
India is becoming a popular location for foreign manufacturers because of its quickly expanding economy, affordable labour costs, and consistent government support. For businesses looking to establish manufacturing facilities in the nation, the Government's "Make in India" incentive program offers an alluring alternative. This guide will assist in comprehending the crucial requirements for setting up a manufacturing facility in India.
Factory audits are important for companies that intend to ensure compliance and quality in operations as well as supply chain efficiency. India is experiencing unparalleled growth in manufacturing. The skills to perform factory audits effectively can be used to counter most risks related to Indian supplier relationships. This blog gives a complete step-by-step guide on how to perform factory audits in India, including a complete checklist.
Establishing a manufacturing plant is a major investment that requires meticulous planning and a thorough understanding of the associated costs. Whether a seasoned entrepreneur or an industrial novice, understanding the "cost equation" is vital for making informed financial decisions and ensuring the long-term profitability of the operations. This blog will break down the various expenses associated with establishing a manufacturing facility in India.
Setting up a manufacturing plant is a significant milestone for any business, but it comes with complexities that require careful planning, research, and execution. From selecting the right location to ensuring regulatory compliance and operational efficiency, every aspect needs expert attention to guarantee success. This is where IMARC Group steps in, offering comprehensive pre-feasibility studies and consultation services to help businesses establish manufacturing plants seamlessly.
The manufacturing sector is a cornerstone of India's economy. It accounted for about 14% of the overall GDP of the nation in 2024 and has employed millions of people across the country. India has been a rising manufacturing powerhouse globally and 2025 is expected to be a turning point. Given the better government focus and strong labor force, along with the increasingly effective infrastructure, India is likely to be sealed as a prime destination for global manufacturers.
Many have encountered this scenario: visiting a website with enthusiasm to purchase a product seen in an advertisement, only to face challenges such as navigating a complex interface, unresponsive customer service, and a cumbersome checkout process.
The OTT industry is experiencing a pivotal transformation, signaling the advent of a new digital entertainment era. Consumers are increasingly demanding convenience and personalized experiences on OTT platforms. As a result, platforms are investing massively in technologies such as AI to enhance the recommendations of content and improve user experience.
From established giants in the United States and Europe to fast-paced markets in Asia, the e-commerce revolution is creating a competitive marketplace that transcends geographical boundaries. Vietnam stands out as a key force in this global trend, showcasing the potential of e-commerce to drive national economic transformation. The country’s e-commerce industry is witnessing tremendous growth, driven by new markets and growth opportunities in established markets.
Head-mounted displays consist of small displays with in-built sensors and optics that project images directly onto the user's eyes. They provide a virtual reality (VR) or augmented reality (AR) experience that allows users to interact with digital objects or environments. They resemble glasses or goggles and are designed to be worn on the head. They comprise many components, such as a controller, sensor, camera, lens, goggles, head tracker, case, connector, display, battery, processor, memory, pico projector, and accessories. Tracking systems and sensors detect the user's head movements and adjust the displayed content accordingly, offering the user a more realistic, immersive, and interactive experience.
5G technology or fifth-generation wireless technology is the latest advancement in mobile communication systems that provides enhanced data transfer speeds, reduces latency rates, improves reliability, and increases network capacity. This technology operates in the mm-wave spectrum, the spectrum band ranging from 30 to 300 gigahertz (GHz), which facilitates high-speed networks and faster data delivery. 5G technology supports the growth of emerging technologies like artificial intelligence (AI), machine learning (ML), and edge computing, enabling new business models and unlocking economic potential. It enhances the performance of business applications and digital experiences, such as video conferencing, online gaming, live streaming media, and self-driving cars. The components included in 5G technology are hardware, software, and services, and it is utilized in a wide range of applications, such as automation, video services, connected vehicles, smart homes, virtual & augmented reality, and monitoring & tracking. For better connectivity of networks, various industries, such as manufacturing, automotive, transportation & logistics, media & entertainment, energy & utilities, healthcare, government, and others, have deployed 5G technology extensively.
Robotics is the branch of engineering that deals with designing, constructing, and operating robots. Robots are programmable machines capable of carrying out tasks autonomously or semi-autonomously. Major types of robotics include industrial and service robots, combining elements of mechanical engineering, electrical engineering, computer science, and artificial intelligence (AI). Industrial robots encompass articulated, Cartesian, SCARA, and cylindrical robots. Service robots serve personal, domestic, and professional purposes, used in various applications, such as household tasks, entertainment, defense, fieldwork, logistics, healthcare, infrastructure, mobile platforms, and cleaning, and more. Robotics can efficiently and accurately perform tasks in environments that may be hazardous or challenging for humans. Robots reduce human labor, enhance production efficiency, lower costs, and improve product quality in various industries. Robotics is further categorized into types such as industrial robotics, food robotics, warehouse robotics, smart robotics, automotive robotics, agriculture robotics, logistics robotics, construction robotics, space robotics, and others. Nowadays, robotics has become an important part of many industries, even being used to explore deep oceans and space. Additionally, it is employed in creating autonomous vehicles, performing surgery, and conducting medical diagnoses.
Artificial Intelligence (AI) chips are designed to accelerate and optimize AI and Machine Learning (ML) workloads. The field of AI involves tasks such as pattern recognition, data analysis, and decision-making, which often require massive parallel processing. AI chips perform various tasks like deep learning, neural network processing, and other computationally intensive operations. These chips are tailored to support the parallel computing needs of AI workloads, making them well-suited for these tasks.
Oman is situated on the southeastern coast of the Arabian Peninsula. It boasts a rich cultural heritage, stunning landscapes, and a diverse range of attractions, making it an emerging destination in the tourism market. The country offers a wide array of tourist activities, including sunbathing, swimming, kitesurfing, diving, snorkeling, boating, among many others. Beach activities and kite surfing are popular in Muscat, Al Sawadi Beach, Alzaiba Beach, and Masirah Island, while desert safaris are a highlight in Wahiba Sands. Oman's rich historical heritage includes numerous UNESCO World Heritage Sites, ancient temples, forts, and palaces, such as Bahla Fort and the Archaeological Sites of Bat, Al-Khutm, and Al-Ayn.
Virtual reality (VR) gaming represents a new generation of computer games that leverage VR technology to provide high-definition visuals, spatial audio, and precise motion tracking, creating a sense of presence and immersion. VR gaming offers a 360-degree view of the virtual environment, keeping players engaged for longer periods compared to traditional gaming. Additionally, VR gaming is used in rehabilitation and the treatment of phobias, anxiety disorders, and other psychological conditions. It is also employed to train soldiers in combat scenarios, strategy, and decision-making.
Cloud computing delivers computing services over the internet, including servers, storage, databases, networking, software, analytics, and intelligence. It promotes faster innovation, flexible resource allocation, and economies of scale. Moreover, it offers numerous advantages, such as cost efficiency, mobility, scalability, reliability, and automatic software updates, among others.