German industrial giant Siemens is significantly boosting its strategic focus on India, viewing the country as a pivotal hub for its AI-led industrial future. CEO Roland Busch noted India’s robust 15% revenue growth, making it a top-performing market. This surge is fueled by India’s ambitious infrastructure development, including extensive rail electrification—with Siemens supplying 1,200 electric locomotives—aimed at reducing logistics costs and enhancing domestic manufacturing competitiveness.
Beyond traditional infrastructure, Siemens sees immense potential in India’s burgeoning data center ecosystem. The global rise of AI workloads drives demand for energy-efficient buildings, reliable grids, and advanced automation, directly benefiting Siemens’ Smart Infrastructure and Digital Industries. Busch highlighted that data centers foster a broader manufacturing ecosystem around digital infrastructure investments.
Regarding AI’s impact on employment, Busch dispelled fears of “lights-out” factories. He envisions an evolution of the workforce: routine tasks automate, but demand grows for skilled professionals in robot programming and automation control. For India’s young populace, the focus shifts to upskilling rather than job displacement. Siemens’ substantial software investment ensures AI accelerates design processes without compromising critical reliability and precision in manufacturing.
The company’s “local-for-local” strategy, maintaining 70-85% local content, aligns with India’s push for domestic manufacturing and supply chain localization. This includes developing local supplier networks and engineering capabilities. While M&A will continue, Siemens prefers targeted, bolt-on acquisitions in software and connected hardware to strengthen digital-industrial integration. With a strong order book and growth in sectors like pharma, aerospace, and defense, Siemens positions India as a crucial long-term manufacturing and digital engineering hub, aligning with India’s industrial cycle.