Micro, small, and medium sector enterprises (MSME) have a vital role in the economic growth of a developing nation like India. Nearly 63.4 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities as well as 33.4% of India’s manufacturing output.
As per the information received from the Central Statistics Office (CSO), Ministry of Statistics & Programme Implementation (MOSPI), the Share of MSME Gross Value Added (GVA) in total GVA during 2016-17 was 31.8%.
As per the information received from Directorate General of Commercial Intelligence and Statistics (DGCIS), the Share of MSME related Products in total Export from India during 2018-19 is 48.10%.
Hence, these enterprises play a catalyst role in the development of industrial and commercial activities. In the overall value chain of different industries, these firms placed in critical positions. It is, therefore, imperative to focus on the issues which impact the creation, survival, and growth of the firms of the sector. One such prime problem is the need for Automation leveraging Information Technology by these firms.
The challenges faced by the MSME sector arise from multiple factors. These enterprises being small in sizes have limited ability to withstand an economic shock like the present one in Mar-Apr 2020. They are generally running with an inadequate amount of capital.
But the MSME sectors have to overcome it to survive in this scenario. Under this current situation, it is very challenging to bring in state-of-the-art IT solutions in these Enterprises for turning them around and make it vibrant, thus contributing to the Indian economy.
A group created to discuss various issues, challenges, opportunities in MSME sectors, and suggest the adoption of technology, business models, best practices, guidelines which will make it viable and acceptable.
Industry 4.0 standard and guidelines not considered for bringing improvement in the MSME sector, which can bring radical changes to current practices, policies, and processes.
If interested, please join the linked in group.