Assessing the need for the adoption of digitalization in Indian small and medium enterprises

Abstract

Manufacturing has experienced an immense transformation since the emergence of Industry 4.0. Digitalization has substantially improved production efficiency and product quality, and innovative business models have emerged. The backbone of emerging countries like India comprises small and medium enterprises (SMEs) that provide jobs for millions of families. Small and medium-sized businesses (SMBs) account for around 31% of the nation’s GDP and 43% of 2021–2022 exports, both significant contributors to economic growth when there is a substantial labour pool. Therefore, they are often known as India’s growth engine. Unfortunately, in today’s highly competitive digital market, they fail to keep pace with technological innovations and keep their employees up to date. This article discusses the significance of digitalization for India’s SMEs, addressing the hurdles and the methods to remove them. New consumer markets have been established due to government programs like Make in India, Digital India, and E-Government.

Keywords

• digitalization
• technology
• smes
• iot
• blockchain