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Pankaj Mohanty: AI Is Odisha’s Manufacturing Catalyst

Bhubaneswar: Pankaj Lochan Mohanty, Chairman, Odisha State Development Council, ASSOCHAM’s address at the Odisha Manufacturing Conclave 2025 highlighted a crucial pivot for the state’s industrial strategy: moving beyond its traditional resource-rich identity to embrace a future driven by data and digital intelligence, with Artificial Intelligence (AI) at its core.

ASSOCHAM Chief Shri Mohanty emphasized that AI is no longer a futuristic concept but a “defining catalyst” for modern manufacturing, urging Odisha to leverage this technology for smart and sustainable growth.

This strategic direction was further reinforced by the release of the ASSOCHAM-Primus Knowledge Report, titled “AI-Driven Manufacturing: Innovation, Efficiency & Sustainable Growth.” This pioneering report, a collaboration between the ASSOCHAM–Odisha State Development Council and strategy consulting firm Primus Partners, offers a comprehensive analysis of AI’s transformative potential in the manufacturing sector, both globally and in India, particularly for Odisha.

Global and Indian Context: The report underscores that AI is already reshaping global manufacturing, with over 80% of manufacturers incorporating AI in their operations. Studies cited within the report indicate significant gains from AI adoption, including up to 40% productivity gains and 90% defect detection accuracy in AI-driven factories.

Odisha’s Unique Positioning: Despite being rich in resources like steel and iron ore, Odisha’s vision is to become “data-rich and digitally intelligent.” The state’s proactive AI policy (Odisha AI Policy 2025) and ongoing AI missions are positioning it as a national model for AI integration across crucial industrial sectors such as steel, mining, green energy, logistics, and infrastructure.

Enhanced Efficiency and Sustainability: AI is presented as a tool not just for optimizing current processes but for redefining them. It promises to significantly reduce defects, cut material costs, and accelerate production cycles, contributing to overall operational efficiency. Furthermore, AI plays a vital role in enabling responsible manufacturing, for instance, by reducing emissions, optimizing energy usage, and ensuring regulatory compliance (ESG alignment).

Strengthened Collaboration: A recurring theme is the critical need for robust partnerships between government, industry, academia, and startups. This collaborative ecosystem is essential for fostering scalable and ethical AI deployment.

Future-Ready Workforce: The report emphasizes strategic investment in AI-integrated skilling and capacity building. This is particularly crucial for MSME clusters and technical institutions, ensuring that the workforce is equipped with the necessary skills for the AI-driven industrial landscape.

Practical Roadmap for Growth: The ASSOCHAM-Primus report provides a practical roadmap for stakeholders to harness AI for economic growth, sustainability, and resilience. It specifically highlights the potential benefits for MSMEs, which can gain significantly from targeted skilling, infrastructure support, and innovation partnerships.

Global Competitiveness: By embracing AI, Odisha aims to make its “Made in India” products globally competitive and future-ready, balancing innovation with sustainability.

The Odisha Manufacturing Conclave 2025, serving as the launch platform for this report, signifies a serious commitment by Odisha to lead India’s AI-led industrial transformation. The discussions at the conclave, involving senior government officials, industry leaders, policy experts, innovators, and academic institutions, are geared towards facilitating high-level dialogue on India’s readiness for this transformation, with Odisha acting as a key accelerator.

In essence, the initiative championed by ASSOCHAM Chief Shri Mohanty and the insights from the ASSOCHAM-Primus Knowledge Report mark a clear strategic shift towards a digitally advanced and AI-powered manufacturing future for Odisha, aiming for both economic prosperity and environmental responsibility.