MSMEs play a central role in the growth of the Indian economy. The MSME sector, with 63 million enterprises, has a huge social and economic impact. MSMEs in India contribute about 45% to the manufacturing sector and almost 40% to the export sector.
Their contribution to the country’s GDP is around 30% and although the sector is considered a solid pillar of the Indian economy, it faces several challenges such as financial constraints, strong international competition, pressure for a efficient use of key resources such as energy, water and raw materials, implementing more environmentally friendly production processes and dealing with technological obsolescence and inefficiencies in the supply chain supply.
To overcome these constraints and become globally competitive, MSMEs need to adopt innovative approaches in their work. A culture of innovation on multiple parameters such as business processes, product development and technology upgrading, marketing practices and improving the efficiency of internal operations can bring about a drastic change in their own. -be general.
By modernizing and adopting green technological innovations, India’s MSME sector can create new economic opportunities and strengthen its long-term competitiveness. MSMEs also need to implement new and innovative ICT technologies at scale, such as Software as a Service (SaaS) and Infrastructure as a Service (IaaS).
Although the Indian government has taken a number of initiatives such as Startup India and the launch of innovation hubs aimed at strengthening the innovation capacity of MSMEs, cooperation between industry, universities and government bodies remains low, which hinders the innovation capacity and sustainability of MSMEs.
Upgrading technology in manufacturing and innovations and digitization in processes can be a game-changer for MSMEs in India to achieve global competitiveness.
At present, technological advancements and innovations in the industrial and service sectors are led by scientific and technological institutions, universities and innovative startups. To bring India to the forefront of innovation and enterprise, it is necessary to put in place a support system for the rapid conversion of innovative ideas into products, processes and services for the global market. . Through these innovations, India can also increase the productivity of its workforce and provide basic services to millions of people at affordable prices using technology and the digital economy.
In line with the vision of Aatmanirbhar Bharat, MSMEs in India must be technologically empowered to overcome the challenges they face in exporting their products and substituting imports. The world is changing rapidly and strengthening the competitive strengths of MSMEs should be a priority through continuous innovations to improve quality standards and price advantage.
To this end, the following suggestions may be helpful:
- Assess the current level of technology in various sectors and the desired technological levels one seeks to achieve.
- Tap innovations and MSME-friendly technologies for implementation.
- Set up Information Centers and a Bank for innovations and their transfer mechanism, as well as support institutions to facilitate this technology transfers and upgrading.
- Facilitate regular consultations with various organizations, innovation and technology centers and institutions engaged in technology management.
- Encourage research and development of indigenous technologies for micro and small enterprises, including traditional professions.
- Create a large number of innovation infrastructures in various institutions to encourage and incubate start-ups.
- Organize awareness programs among MSMEs regarding quality, standardization and import substitution.
Global markets demand quality products with zero defects and zero effects. India’s vision of achieving $ 5,000 billion in savings can be accelerated by introducing a culture of innovation in both products and processes and by adopting innovative technologies.
(By Pradeep Multani, President, PHD Chamber of Commerce and Industry)