India at the Digital Turning Point: How Virtual Twins, AI and Data Are Rewiring Industry

Why It Matters

Accelerated adoption of virtual twins and AI will boost productivity, cut carbon footprints, and enhance competitiveness of Indian industry, while addressing energy security and sustainability goals.

Key Takeaways

• Virtual twins now mainstream across manufacturing, infrastructure, life sciences
• Godrej rates digital maturity 7‑8/10, focusing AI for efficiency
• IndianOil uses AI in exploration, refining, and retail supply chain
• Only 25% of Indian firms score >4 digital maturity
• Fragmented software ecosystems increase costs, limit data integration

Pulse Analysis

Virtual‑twin technology has become a cornerstone of India’s industrial renaissance, enabling engineers to simulate entire product lifecycles before a single physical prototype is built. By linking digital models to real‑world data, manufacturers can predict performance, optimise material usage and dramatically lower carbon emissions. The shift toward model‑based engineering also supports the "first‑time right" philosophy, where design accuracy translates into shorter time‑to‑market and reduced rework costs, a critical advantage for sectors ranging from automotive to aerospace.

Artificial intelligence is now the next frontier of this digital evolution. Companies such as Godrej Industries are leveraging AI to identify high‑impact use cases that drive efficiency, cost reduction and revenue growth, while IndianOil Adani Ventures embeds AI across upstream exploration, refining operations and retail inventory management. The convergence of AI with rich data streams empowers scenario modelling, allowing leaders to navigate geopolitical volatility and supply‑chain disruptions with greater agility. However, the true value of AI emerges only when data is clean, accessible and integrated across functions, a point emphasized by KPMG’s digital experts.

Despite the momentum, India’s overall digital maturity remains modest, with roughly 25% of firms scoring above four on a five‑point scale. Fragmented software landscapes—often 25‑30 disparate systems that rarely communicate—inflate costs and stifle insight generation. To unlock the full potential of digital continuity, organisations must adopt a phased roadmap: pilot single‑function solutions, expand to cross‑functional integration, and ultimately achieve ecosystem‑wide connectivity. As green molecules like ethanol, biogas and hydrogen gain traction, a unified digital backbone will be essential for scaling sustainable energy supply chains and maintaining India’s competitive edge on the global stage.

India at the digital turning point: How virtual twins, AI and data are rewiring industry

By Brand Connect Initiative · Published on Feb 12, 2026 at 08:00 AM IST

In the final episode of the India Leadership Talks, presented by ET Manufacturing and Dassault Systèmes, leaders from Godrej Industries Limited, KPMG and IndianOil Adani Ventures came together to reflect on India at the Digital Turning Point, an inflection moment where digital ambition is translating into industrial action across manufacturing, infrastructure and energy.

Virtual twins move from promise to practice

The conversation opened with the rapid rise of virtual‑twin technologies and the pace at which industries are embracing simulation‑led engineering. Deepak NG, Managing Director, Dassault Systèmes, observed that the momentum around virtual twins was accelerating across sectors rather than being confined to one industry.

“Virtual twin at speed is the right way to describe what we are seeing,” he noted, pointing to strong adoption across manufacturing, infrastructure and life sciences. Automotive and aerospace, he said, were already deploying virtual twins at scale, while urban infrastructure and building design were using simulation to plan complex projects more sustainably. “The ability to simulate well in advance helps reduce carbon footprint, cut down prototypes and save costs. Different sectors are at different stages of maturity, but virtual twins are becoming the new normal.”

From digitalisation to digital engineering

From the lens of a diversified Indian conglomerate, the shift from digitalisation to digital engineering was framed as an evolution rather than a leap. Vishal Sharma, Executive Director & CEO, Godrej Industries Limited, described Godrej as already “fairly digitalised” in terms of automation and data capture, rating the group’s digital maturity at “seven or eight out of ten”. Yet, he underlined that the centre of gravity was now moving towards artificial intelligence.

“The focus has evolved to looking very closely at AI. Across group companies, we have identified three focused initiatives each where AI can drive productivity, efficiency, cost reduction or revenue growth,” he said.

At the same time, Sharma cautioned against indiscriminate experimentation.

“You can get very excited about this stuff and end up spending a lot of time, energy and money achieving nothing. We are being careful—moving forward step by step with validated case studies.”

Energy’s digital transition: Balancing security and sustainability

The energy sector’s digital transition, shaped by the twin pressures of decarbonisation and energy security, offered a different perspective. Atul Kharate, COO, IndianOil Adani Ventures, spoke about the industry’s journey from traditional fossil fuels towards greener alternatives, alongside the imperative of reducing import dependence.

“We are an import‑dependent country, so the exploration of indigenous crude and petroleum resources is critical,” he said, adding that digitalisation and AI were now integral to exploration programmes across several states.

Beyond upstream activities, Kharate highlighted how downstream operations were being transformed.

“In refining, storage terminals and supply chain management, processes are highly automated today. Even at the retail outlet level, stock monitoring, pump‑level data and reordering are digitised. There is much more potential in this space in the coming years.”

Digital is no longer optional

Looking across sectors, S Sathish, Partner & National Sector Leader – Industrial Manufacturing, KPMG, positioned digital transformation as a strategic necessity rather than a discretionary investment.

“Digital is no more a choice,” he remarked, pointing to global peers who had accelerated growth through early adoption of digital manufacturing and simulation.

He stressed that the real value lay in data readiness.

“Manufacturing sectors are generating large volumes of data and overlaying it with AI in specific areas. You cannot apply AI for AI’s sake; use cases around yield improvement, commodity positioning, sourcing and even sales are where we are seeing traction.”

For Sathish, the convergence of digital engineering and AI was sharpening decision‑making by narrowing variables and improving precision on the shop‑floor and beyond.

Model‑based engineering and the pursuit of ‘first‑time right’

The dialogue then turned to model‑based engineering and the boardroom ambition of achieving ‘first‑time right’ outcomes. Deepak NG traced the evolution of this philosophy from component‑level accuracy to system‑wide simulation of complex products such as cars, aircraft and connected devices.

“Today, products are no longer purely mechanical; mechatronics and software define behaviour,” he explained.

Model‑based engineering, he said, provides a framework to translate requirements into design, simulate the interaction of physical components and software, and validate outcomes virtually.

“When your virtual data is aligned with how physical components are made, you are close to 100 per cent accuracy. This reduces timelines and minimises the need for physical prototypes.”

Manufacturing precision versus R&D experimentation

While endorsing the value of ‘first‑time right’ in manufacturing, Vishal Sharma drew a distinction between production environments and innovation‑led R&D.

“In manufacturing, first‑time right is absolutely critical and we measure it rigorously—at Chemicals, for instance, we aim for 99 per cent to avoid rework and save cost,” he said.

However, in research and innovation, he argued, the objective was different.

“The nature of R&D is experimentation. Digital twins and modelling can dramatically cut cycle times—what took months can be reduced to a fraction—but innovation is unlikely to be right the first time. The real goal is to be faster, cheaper and deliver the best product quickly.”

Echoing this nuanced view, S Sathish reflected on how digital tools and AI were redefining the meaning of ‘first‑time right’ by improving precision.

“Earlier, you might test ten factors to understand impact. Today, with better data and AI, you can narrow it down to three or four with much higher confidence,” he said.

Safety, regulation and digital innovation in heavy industries

From the vantage point of India’s heavy industries, the promise of ‘first‑time right’ is tempered by regulation, safety and the realities of operating at national scale. Atul Kharate acknowledged that while he agreed with the principle in concept, the oil and gas sector operates under stringent regulatory frameworks because of the nature of the products it handles.

“Even within these constraints, there has been significant innovation across exploration, refining, petroleum storage and downstream distribution,” he said. “These interventions are not just about cost optimisation; they have added considerable value to operational efficiency and, crucially, to safety, which is vital for industries like ours.”

Digital continuity: Connecting design to the shop‑floor

The discussion then moved to digital continuity—a phrase that gained currency during the pandemic but has since evolved into a strategic imperative for organisations seeking to connect design to shop‑floor. Deepak NG suggested that the gap in digital continuity varies by organisational maturity.

For Dassault Systèmes, the organising principle is the ‘end object’—the car, aircraft or product that anchors every function.

“Digital continuity means the end object becomes the reference point for everyone in the organisation—not just design and simulation teams, but suppliers, HR, finance and beyond,” he explained.

The cost of fragmented digital adoption

At the enterprise level, the impact of connected operations is most keenly felt where costs and efficiencies are concentrated. Vishal Sharma pointed to manufacturing as the area of greatest value creation.

“For us, even a one per cent change in yield can mean tens of crores of rupees gained or lost,” he said.

Sharma warned against fragmented technology adoption.

“The average mid‑sized or large company uses 25 to 30 different software systems, and half of them don’t talk to each other. This happens because organisations often lack a digital vision.”

Green molecules and the future of energy supply chains

As the conversation turned to the future of industrial supply chains, Atul Kharate highlighted how green molecules are beginning to reshape India’s energy ecosystem. He cited ethanol blending, compressed biogas and hydrogen as emerging pillars of the energy transition, noting the growing role of automation and digitalisation in scaling these solutions efficiently across supply chains.

Scenario modelling in an age of volatility

Framing these shifts within a broader manufacturing context, S Sathish reflected on the accelerating pace of digital transformation.

“The clock speed of change is extremely fast… digital tools and AI help leaders model outcomes and take informed decisions with agility,” he said, pointing to scenario modelling as a key leadership capability amid geopolitical and market volatility.

Stitching together the digital ecosystem

Building on the challenges of fragmented digital adoption, S Sathish highlighted the complexity of integrating uneven data streams across functions and ecosystems, from real‑time manufacturing data to slower‑moving sales and procurement inputs.

“The real power of digital comes when ecosystems are connected,” he said.

India’s digital maturity: The road ahead

Sathish outlined a three‑stage pathway of digital maturity—from single‑function pilots, to cross‑functional integration, and finally ecosystem‑level digital continuity. He offered a candid snapshot of India’s current position:

“Only about 25 per cent of companies in India score around 4.3 out of five on a digital maturity scale, while 75 per cent are still at around 1.9.”

Yet, he sensed growing resolve in Indian boardrooms.

“There is a lot of positivity among CEOs. Everyone wants to do digital transformation now, the real question they are grappling with is where to start and how to scale it meaningfully.”

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Disclaimer: This content is published under the Brand Connect initiative and is independent of the newsroom’s editorial coverage.