The rapid advancements in microprocessors has enhanced the computational power available on the desk top, enabling a paradigm shift in the way Researchers are handling large amount of data, developing newer algorithms to gain a deeper understanding of the subject matter as well as thinking and performing tasks that could never be imagined by mankind couple of decades ago. 3D additive printing; robotics - soft and hard; increased autonomous operations; Big data analytics; Internet of Things; Cyber Physical Systems; Artificial Intelligence; Machine Learning; Nanotechnology; Augmented and Virtual Reality; Exoskeleton; Cloud computing; Predictive maintenance; Advanced materials etc are the results of exponential rise in computational power, collectively known as Industry 4.0. Adoption of industry 4.0 across different industrial domains is now encroaching upon design, building, operation and maintenance of both commercial and naval ships. This paper intends to examine the adoption rate in advanced navies and look at the challenges faced by the developing navies, (especially in the Indian context), in their readiness for industry 4.0. The challenges could be education and training of human resources; industry support; local culture and mindset - within the navy and outside the navy; Cyber Security; Data storage; Data Privacy and confidentiality etc.