Siemens, Nagarro double down on India as smart manufacturing push gains steam

India’s ambitions to lead the next phase of smart manufacturing may still be early-stage, but companies like Siemens and Nagarro are already placing long-term bets. As the two firms mark 31 years of partnership, the focus is shifting to a more strategic, future-facing collaboration—one that sees India as both a digital lab and a global springboard.

At the heart of this evolution is the X Lab—Nagarro’s physical showcase of industrial tech, launched in Gurgaon and soon expanding to Dubai, Oman, and Munich. “We could invite customers, we could invite people who want to learn, basically, what can you do with industry and technology,” said Ehsaan Shariff, managing director at Nagarro. “The idea is to copy-paste the model across regions.”

Nagarro now has over 800 engineers working exclusively on Siemens projects. Its offices span 39 countries, but India is increasingly central—not just for cost or talent, but for driving innovation. Dion Smith, SVP at Siemens, who joined from AWS and Dell, sees the growing overlap of IT and operational tech (OT) as a big opening. “Over 90% of the world's factories are not connected to the network today,” said Smith. “That’s changing fast, and the only way it will scale is through partners that build deep competency across cybersecurity, AI, and data systems.”

India’s digital manufacturing footprint remains thin—just 3% of local factories are classified as “smart” today, according to Siemens. But that also means headroom. “That’s material,” said Smith. “Because when you look at energy sustainability, production efficiency, and AI adoption, all of that comes from smart factories. And the opportunity is everywhere across the country.”

The partnership is also tied closely to Siemens' M&A-led innovation agenda. “They go shopping every year,” quipped Shariff. “They just bought Altair, which is strong in simulation and AI. For us, the goal is to follow Siemens and their customers wherever they go.”

That increasingly includes Indian companies going global. “A lot of Indian firms are now expanding abroad, and they expect us to follow them,” Shariff added.

At the same time, India’s manufacturing moment may have arrived but can it match China’s rise? India is still at just 3% digital manufacturing penetration while China’s smart factory is near saturation. But there’s a sense that India’s trajectory could be different—not slower, just more complex. With GCCs, AI adoption, and massive demand, India could leapfrog in its own way.

Smart manufacturing in India is still in its infancy,” acknowledged Manas Human, CEO of Nagarro. “But I wouldn't say we’re 25 years behind China. India is a paradox—you’ll find world-class facilities and still-to-be-digitised ones next door.”

What gives India an edge, he believes, is the institutional momentum. “We’ve built strong institutions, and we’re investing in skilling. Take UPI or even something like Atal Tinkering Labs, there’s a grassroots effort to change how we approach innovation.”

The next frontier would be scaling best practices across geographies and sectors. Smith says the focus is now on replicating use-cases, whether in pharma, auto, or defence, across Siemens’ global footprint.

As India’s economy doubles every decade, Nagarro and Siemens are betting that the country's industrial evolution won’t just be about catch-up, it might set new templates.