04 SEP,2021 | MEDC
The digitalization of India’s MSME sector could potentially add $150 – 200 billion to GDP by 2024. Covid showed that it is those enterprises able and willing to transform their operations (primarily through technological upgradation) that will survive and thrive. Across industries, digitalization has proved advantageous in terms of cost-reduction, process standardization, and enhancing the compatibility of business operations. Digitalization does not necessarily entail a huge financial investment in technology, as many of the tools required by MSMEs are either free, or cost-effective vis-à-vis the benefits they offer. The key is to boost infrastructure in the other supporting areas of business operations that will enable digitalization to take root and accelerate the continuity and scaling-up of industrial processes. Emerging technologies like AI, Robotics, and the Internet of Things could be considered in this regard. The continued adoption of such technologies will ultimately lead to a sustained rise in the competitiveness of India’s MSMEs, long after Covid has passed.
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