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India Should Create a National Digital Twin Industry

Posted on July 14, 2026July 14, 2026 by Kiran S. Pillai

A digital twin is a virtual replica of a physical asset that continuously receives data from the real world. While the technology is commonly associated with smart factories, its potential extends far beyond manufacturing. India can develop an entirely new export industry by building digital twins for factories, mines, ports, airports, railways, power plants, oil refineries and industrial cities across the world.

Today, many infrastructure projects are designed using conventional engineering software. Once construction begins, much of the digital model becomes obsolete. A digital twin, however, evolves alongside the physical asset. It receives real-time information from sensors, cameras, drones and industrial control systems, allowing operators to monitor performance, predict failures and simulate future scenarios before implementing changes.

India already possesses several advantages in software engineering, cloud computing, industrial automation and engineering services. By combining these strengths, the country could become a leading supplier of digital twin platforms instead of importing expensive foreign software.

The government could establish a National Digital Twin Mission to accelerate research, software development and industrial deployment. The mission would encourage technology companies, engineering firms, universities and industrial manufacturers to collaborate on standardized digital twin platforms suitable for multiple sectors.

Factories could use digital twins to simulate production changes before installing new equipment. Engineers would identify bottlenecks, estimate energy consumption and predict production capacity without interrupting operations. Such simulations reduce investment risks while improving decision-making.

Mining companies could create digital twins of entire mines, integrating geological information, drilling operations, equipment movements and worker safety systems. Operators could evaluate different extraction strategies while reducing fuel consumption and improving resource recovery.

Ports could benefit by simulating vessel movements, cargo handling, crane operations and truck traffic. Port authorities would identify congestion before it occurs and optimize logistics across the entire facility, improving export efficiency.

Power plants could continuously monitor turbines, boilers, transformers and cooling systems through digital twins. Predictive maintenance algorithms would recommend repairs before equipment failures occur, reducing downtime and extending the life of critical infrastructure.

Urban infrastructure offers another opportunity. Industrial townships, logistics parks and manufacturing corridors could maintain digital twins that integrate transportation, utilities, environmental monitoring and emergency response systems. City planners could evaluate future development without disrupting existing infrastructure.

India should encourage the development of open digital twin standards. Common data formats would allow equipment from different manufacturers to communicate seamlessly, preventing technological fragmentation and reducing dependence on proprietary software ecosystems.

The domestic startup ecosystem could develop specialized digital twin solutions for agriculture, renewable energy, healthcare, water management, aviation and shipping. Instead of building generic software, startups could focus on solving industry-specific operational challenges.

Engineering education should also evolve. Universities could introduce dedicated programmes in digital twin engineering, industrial simulation, real-time data integration, systems modelling and industrial artificial intelligence. These skills will become increasingly important as virtual engineering expands.

Export promotion policies should include digital engineering services alongside traditional IT exports. Indian firms could provide digital twin design, implementation, maintenance and optimization services to industrial customers worldwide. This would create recurring service revenues instead of one-time software sales.

Cloud infrastructure providers operating in India could support the industry by offering secure computing environments optimized for industrial simulations. Domestic cloud capabilities would reduce dependence on overseas computing resources while addressing data sovereignty concerns.

Certification laboratories should verify the accuracy, cybersecurity and reliability of digital twin platforms before deployment in critical infrastructure. Standardized testing would increase confidence among international customers while improving software quality.

As artificial intelligence continues to evolve, digital twins will become increasingly autonomous. They will recommend operational improvements, predict maintenance requirements, optimize energy usage and simulate future investment decisions with minimal human intervention.

Countries are investing heavily in physical infrastructure, but relatively few have developed strong capabilities in virtual industrial infrastructure. India has the engineering talent and software expertise to lead this emerging sector. By building a national digital twin industry, the country can create high-value exports, strengthen domestic manufacturing and establish itself as a global leader in the next generation of industrial engineering.

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