Short answer: Most European automation and robotics suppliers enter India through local system integrators, the engineering firms that design, program, install and maintain automated lines for Indian factories, because integrators already have the plant relationships and field engineers a newcomer would need years to build. The price is margin and control: the integrator buys at a discount and handles the customer day to day, so the supplier's protection lies in an agreement covering territory, engineer certification, spares, response times, warranty and the application software. India rescinded its machinery-wide safety order in January 2026, so certification is now checked component by component, while demand is led by car and component plants, which took 45% of the industrial robots installed in India in 2024.
Who this is for: export directors, sales heads and CFOs of Italian, German and other European automation, robotics and packaging-machinery makers choosing their sales and service channel in India.
Industrial automation and robotics in India: where the demand is
India installed almost 10,500 industrial robots in 2025, 15% more than in 2024, making it the sixth-largest market for new installations; installations have grown by an average of 27% a year since 2020 [9]. Car and component plants are the core buyers: in 2024 they installed 4,070 of the 9,120 robots (45%), with parts suppliers up 40%; plastics and chemical products (up 33%) and metal (up 30%) also grew strongly [8].
Production-linked incentive (PLI) schemes in 14 sectors had drawn INR 1.76 lakh crore of actual investment by March 2025 [10]. The International Federation of Robotics warned in September 2025 that installations could contract in 2026 as that support runs out [8], so plan India volumes on announced plant projects, not on a straight-line trend.
The vehicle-sector rules behind those plants are on the automotive and auto-components page, and the general capital-goods position (FDI route, BIS, Project Imports, EPCG) is on the industrial machinery and capital goods page. For the wider European entry picture, see India for European companies: entry, structuring and the EU–India deal.
Automation companies in India: who you actually sell to
A system integrator is an engineering company that combines robots, machines, controls and software from several makers into a working line for an end user, and usually programs, installs, commissions and services it. An OEM here is an Indian machine builder that puts your drives, controllers, sensors or robots inside its own machines.
Most European suppliers sell to at least two of four groups: - end users (car and component, food, FMCG, pharma and electronics plants), which buy projects and want one party to answer for the line; - system integrators, from owner-run firms with ten engineers to divisions of engineering groups; - Indian OEMs, which buy components in volume; - distributors and panel builders, which stock catalogue components and serve maintenance demand.
Choosing the route: integrator, distributor, direct sales or a subsidiary
| Direct sales from Europe | Distributor | System integrators | Own sales-and-service subsidiary | |
|---|---|---|---|---|
| Suits | A few large projects a year, often for global accounts | Catalogue components, sensors, spares | Robot cells, lines and packaging systems sold as projects | Volume, or customers that want a local contracting party |
| Who owns the end customer | You | The distributor | The integrator, day to day | You |
| Your margin per unit | Full | Less the distributor's discount | Less the integrator's discount | Full, less overhead |
| Fixed cost in India | Low (travel) | Low | Low to medium (training, demo kit, spares) | High (staff, premises, stock) |
| Service response | Days (engineers fly in) | Parts only | Hours to a day, if the integrator is trained | Hours to a day |
| Speed to first order | Depends on existing accounts | Fast | Fast, through its customers | Slow (hiring, set-up) |
| Main risk | Losing to local rivals on service | Price erosion, grey imports | It favours a rival brand, or know-how leaks | Fixed cost before volume |
Our assessment.
For project equipment, the usual answer is two or three non-exclusive integrators, each strong in a region or an industry, plus your own spares stock; a service entity follows once the installed base pays for it. Shortlisting and checking an integrator (company filings, GST status, litigation) is covered in finding and checking an Indian partner.
What Indian integrators and OEMs expect from a European supplier
In our experience, an integrator weighs a new European brand on six things:
- Application engineering before the order: layouts, cycle-time studies and support in the customer's technical evaluation.
- Training and certification for its engineers, in India and at your plant.
- Local spares with a stated dispatch time. End users write response times into the integrator's contract, often a day or less for a critical line, and the integrator passes that obligation back to you.
- A reference installation. A paid pilot cell at a known plant opens more doors than a brochure; see from pilot to paid contract.
- Prices and credit that work in India: rupee prices, or euro prices protected over a tender period, and 30–90 days' credit once trust is built, with advance payment or a letter of credit on first orders.
- Lead registration, so that two of your integrators do not bid the same project against each other.
Government and public-sector buyers add local-content rules that can count against imported equipment; see selling to India's public sector.
Certification and duty for automation equipment
No machinery-wide order. The Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order 2024 (S.O. 3649(E), 28 August 2024) was deferred to 1 September 2026 by S.O. 2579(E) of 12 June 2025, then to a date to be notified by S.O. 5179(E) of 13 November 2025, and rescinded with immediate effect by S.O. 239(E) of 14 January 2026, published on 16 January 2026 [1][2].
Components still need checking. A Quality Control Order (QCO) makes BIS certification compulsory for the products it lists. The Electrical Equipment (Quality Control) Order 2020 lists low-voltage switchgear and controlgear, including contactors, motor-starters, semiconductor motor controllers, proximity switches and emergency-stop devices [4]. Only AC circuit-breakers (Category A, up to 630 A and 440 V) are enforced, since 10 November 2024; every other line was deferred "until further orders" on 6 November 2025 [5][7]. No QCO in force on 20 October 2026 names industrial robots, PLCs (programmable logic controllers) or variable-speed drives as such [3][6][7]. Check each HS line against the BIS list before shipping: a deferred line can be brought into force by one notification.
Duty. Customs duty and IGST are set line by line, and robots, controllers, drives and packaging machines fall under different headings; see India trade, import-export and customs.
Service, spares and pricing
Spares decide response times. The integrator can buy and hold your spares (cheapest for you, slow to scale); you can keep a consignment stock at the integrator or a warehouse (you carry the stock risk); or you can stock through your own Indian entity once volumes justify it. Whichever you choose, agree a critical-spares list for each installed line, a dispatch time and a quarterly review.
Pricing. Publish an India list price with discount bands, log project-specific price requests so that discounts do not leak across deals, and choose early between euro quotes with a currency clause and rupee quotes with your own hedge. Secure first orders by advance payment, a confirmed letter of credit or export-credit insurance.
Your own engineers. Long commissioning and warranty visits can create a taxable presence in India; check the service plan against Permanent establishment in India (employees, EOR, agents).
The integrator agreement: clauses that matter
- Territory. Start non-exclusive, by region or industry, and offer exclusivity only against volume targets. How far Indian law lets you stop a partner selling competing brands is covered in Non-compete clauses in licence, distribution and joint venture agreements in India (ATB Legal).
- Engineer certification. Set a minimum number of certified engineers and make your warranty depend on certified installation.
- Application software. Robot programs, PLC code and HMI screens written by the integrator's staff are the integrator's copyright, because the author, or the employer of an author working under a contract of service, is the first owner, and an assignment is valid only in writing and signed [11]. Take an assignment or a perpetual licence that lets the code pass to the end user and to a replacement integrator.
- Know-how. Give the integrator only what it needs, marked confidential; see protecting trade secrets and know-how in India (ATB Legal).
- Warranty back-to-back. Match your warranty to the integrator's, with product defects yours and integration faults the integrator's.
- Spares, pricing and leads. State stock levels and dispatch times, discount bands, payment terms, notice of price changes and lead registration.
- Termination. Provide for support of the installed base, return of demonstration equipment, buy-back of spares and transfer of the software.
What the UK–India CETA and the EU–India FTA change
For UK suppliers, the UK–India CETA, in force since 15 July 2026, cuts India's tariffs on many machinery lines; electrical machinery goes from up to 22% to zero, immediately or in stages [14]. For EU suppliers, the EU–India FTA, concluded in January 2026 but not yet signed or in force [13], would liberalise half of India's machinery tariffs at entry into force and the rest over up to ten years, require 60 days' consultation on new technical regulations and set up a working group on conformity assessment covering Quality Control Orders [12]. Tariff and origin detail is in EU–India trade deal (2026): status, FTA tariffs, rules of origin, CBAM and investment protection (ATB Legal).
Worked example (illustrative)
Hypothetical. An Italian maker of end-of-line packaging machinery (case packers and robot palletising cells) is choosing its India route; the wider entry questions are on the Italy–India corridor page. All figures are our assumptions; Indian duty, IGST and freight are excluded because they are the same on every route. INR 107 = EUR 1 (rounded exchange rates, October 2026).
A cell lists at EUR 400,000 ex-works (INR 4.28 crore); variable cost is 65% (EUR 260,000), so the margin at list is EUR 140,000.
- A. Direct from Italy: 3 cells × 140,000 = 420,000, less fly-in commissioning and warranty visits of 3 × 30,000 = 90,000: EUR 330,000.
- B. Three integrators: they buy at a 15% discount (EUR 340,000), leaving 80,000 a cell, and sell 8 cells: 640,000. Less training and support of 40,000 and a EUR 250,000 (INR 2.675 crore) consignment spares stock carried at 10% (25,000): EUR 575,000.
- C. Own subsidiary: 6 cells × 140,000 = 840,000, less running costs of 450,000 (INR 4.815 crore): EUR 390,000; break-even is 450,000 ÷ 140,000 = 3.2 cells a year.
| EUR a year | A. Direct | B. Integrators | C. Subsidiary |
|---|---|---|---|
| Cells sold | 3 | 8 | 6 |
| Margin per cell | 140,000 | 80,000 | 140,000 |
| Channel costs | 90,000 | 65,000 | 450,000 |
| Contribution | 330,000 | 575,000 | 390,000 |
| Who owns the end customer | The maker | The integrators | The maker |
What the numbers show. The integrator route earns most because it brings volume without fixed cost, even at a 15% discount. Its weakness is the last row, so the agreement must secure the installed base and the application software. A subsidiary needs more than three cells a year just to cover itself; it fits later, as a service and spares entity alongside the integrators.
Risks and common mistakes, ranked
- All-India exclusivity for an untested integrator, locking you out of other regions and industries.
- No agreement on the application software, so the end user cannot change integrator without rewriting the code.
- No spares or response-time commitments, so downtime is blamed on your brand.
- Too many integrators and no lead registration, so they undercut each other.
- Under-trained integrator engineers, causing poor installations and warranty claims.
- Assuming a deferred QCO stays deferred.
- Long tenders priced in euros with no currency clause.
Checklist to forward internally
- Target industries and regions listed; route chosen for projects, components and spares
- Two or three integrators shortlisted and checked
- Each HS line checked against the BIS compulsory-certification list
- Agreement terms set: territory, targets, certification, software, know-how, warranty, spares, pricing, leads, termination
- Spares model and critical-spares list per installed line agreed
- India price list, discount bands, currency and payment security approved
- Field-service plan checked for permanent-establishment exposure
- Trigger for a local service entity defined
How ATB Corporate can help
ATB Corporate advises companies and investors on entering, structuring and operating in India and the UAE: choosing the entry route and holding structure, tax and exchange-control planning, regulatory compliance, and setting up and running the local business. To discuss your plans, contact ATB Corporate.
FAQ
How do foreign automation companies enter the Indian market?
Most foreign automation companies enter the Indian market through two or three local system integrators for project business, a distributor or their own stock for components and spares, and later a small sales-and-service subsidiary once the installed base justifies the fixed cost. Integrators bring existing plant relationships and field engineers, which is why they usually come first.
What does a system integrator do in industrial automation?
A system integrator combines robots, machines, controls and software from several makers into a working production line for an end user, and usually programs, installs, commissions and services it. In India the integrator, not the equipment maker, is often the end user's main contractor and first point of contact.
Do industrial robots need BIS certification in India?
Industrial robots are not named in any Quality Control Order in force on 20 October 2026, so BIS certification is not compulsory for robots as such [7]. Some electrical components are covered: AC circuit-breakers up to 630 A and 440 V (Category A) under the Electrical Equipment (Quality Control) Order 2020 have been enforced since 10 November 2024, and contactors, motor-starters, proximity switches and emergency-stop devices are listed but deferred until further orders [4][5]. Check each HS line before shipping.
Is India's Machinery and Electrical Equipment Safety Order in force?
The Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order 2024 is not in force: after two deferrals it was rescinded with immediate effect by S.O. 239(E) of 14 January 2026, published on 16 January 2026 [1][2]. Product-specific Quality Control Orders still apply.
Who owns the robot or PLC program written by an Indian integrator?
The integrator owns the copyright in robot programs and PLC code its engineers write, unless the contract assigns it, because under Indian copyright law the author, or the employer of an author writing in the course of employment, is the first owner, and an assignment is valid only in writing and signed [11]. Take a written assignment or a perpetual licence that lets the end user change integrator.
Should we give an Indian system integrator exclusivity?
Exclusivity for an Indian system integrator works best when it is limited to a region or an industry and tied to annual volume targets, with the right to end it if the targets are missed. All-India exclusivity on day one usually leaves most of the market uncovered.
Related reading
- PLI and manufacturing incentives for foreign companies
- Wholly-owned, joint venture or contract manufacturing: the foreign manufacturer's India structure
- India manufacturing entry for foreign companies: entity, incentives and supply-chain structuring
- India for European companies: entry, structuring and the EU–India deal
- Aerospace and defence supply chain in India for European suppliers
- India entry strategy: JV, acquisition or greenfield?
- India electronics manufacturing
- non-compete clauses in licence, distribution and joint venture agreements in India (ATB Legal)
Sources
- Ministry of Heavy Industries, S.O. 239(E): rescission of the Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order 2024 (S.O. 3649(E) of 28 August 2024), under s.16 of the BIS Act 2016 (14 January 2026; Gazette of India No. 217, 16 January 2026) — https://heavyindustries.gov.in/sites/default/files/2026-01/withdrawal_of_the_machinery_and_electrical_equipment_safety_omnibus_technical_regulation_order_2024.pdf (accessed 16 October 2026)
- Ministry of Heavy Industries, S.O. 5179(E): Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Second Amendment Order 2025, reciting S.O. 3649(E) of 28 August 2024 and the Amendment Order S.O. 2579(E) of 12 June 2025 (13 November 2025) — https://heavyindustries.gov.in/sites/default/files/2025-11/machinery_and_electrical_equipment_safety_omnibus_technical_regulation_second_amendment_order_2025.pdf (accessed 16 October 2026)
- Ministry of Heavy Industries, Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order page (last updated 20 October 2026) — https://heavyindustries.gov.in/en/machinery-and-electrical-equipment (accessed 20 October 2026)
- Ministry of Heavy Industries, S.O. 1896(E): Electrical Equipment (Quality Control) Second Amendment Order 2024, Table (IS/IEC 60947 parts 2, 4-1, 4-2, 5-1, 5-2 and 5-5) (3 May 2024) — https://heavyindustries.gov.in/sites/default/files/2024-11/electrical_equipment_quality_control_second_amendment_order_2024.pdf (accessed 16 October 2026)
- Ministry of Heavy Industries, S.O. 5038(E): deferment of the upcoming phase of the Electrical Equipment (Quality Control) Order 2020 (6 November 2025) — https://heavyindustries.gov.in/sites/default/files/2025-11/deferment_of_upcoming_phase_implementation_of_the_eeqco.pdf (accessed 16 October 2026)
- Ministry of Heavy Industries, Electrical Equipment (Quality Control) Order page (last updated 19 October 2026) — https://heavyindustries.gov.in/en/electrical-equipment (accessed 20 October 2026)
- Bureau of Indian Standards, Products under compulsory certification, Scheme X (last modified 19 January 2026) — https://www.bis.gov.in/products-under-compulsory-certification-scheme-x/ (accessed 20 October 2026)
- International Federation of Robotics, press release, "India rises to sixth in global factory robot installations" (25 September 2025) — https://ifr.org/downloads/press_docs/2025-09-25-IFR_press_release_India_in_English.pdf (accessed 16 October 2026)
- International Federation of Robotics, press release, "Five million robots now operate in factories globally" (World Robotics 2026) (24 September 2026) — https://ifr.org/ifr-press-releases/news/five-million-robots-now-operate-in-factories-globally (accessed 16 October 2026)
- Lok Sabha, Unstarred Question No. 329, Ministry of Commerce and Industry, PLI schemes (22 July 2025) — https://eparlib.sansad.in/bitstream/123456789/2996904/1/AU329_xNYbE1.pdf (accessed 16 October 2026)
- Copyright Office, Government of India, Copyright Act 1957, Chapter IV, ss.17 (first owner of copyright) and 19(1) (assignment in writing) — https://copyright.gov.in/Copyright_Act_1957/chapter_iv.html (accessed 16 October 2026)
- European Commission (DG Trade), "Memo: EU–India free trade agreement – chapter-by-chapter summary" (2026) — https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/india/eu-india-agreements/memo-eu-india-free-trade-agreement-chapter-chapter-summary_en (accessed 16 October 2026)
- European Commission, "EU–India trade agreement" (last updated 11 September 2026) — https://commission.europa.eu/topics/trade/eu-india-trade-agreement_en (accessed 16 October 2026)
- UK Government (business.gov.uk), "The UK–India trade deal" (last updated 10 October 2026) — https://www.business.gov.uk/campaign/alive-with-opportunity/the-uk-india-trade-deal/ (accessed 16 October 2026)
Disclaimer: This article is general information, not legal, tax or commercial advice; the worked example is hypothetical, and certification rules and tariffs change by notification, so check the current position for your products before acting.