India’s conducive business environment, path-breaking visions and initiatives like Atmanirbhar Bharat and Make in India have accelerated growth in the MSME sector. These developments have further opened new roads for businesses to reimagine their operations. With transformation happening at a rapid pace, businesses have realised they must become efficient and future-ready with digitalisation. In efforts toward making India a global manufacturing hub, it is also important to build an economy that is sustainable and resilient, and digitalisation has a major role to play in this.
The country is also leading the fight against climate change. India has pledged to achieve net-zero emissions by 2070, ramp up the expansion of renewable energy capacity and focus more on energy efficiency. With depleting resources across the globe, it is important for industries to cut emissions, adopt sustainable practices and accelerate digitalisation to put the economy on a sustainable footing.
According to a report by the SME Chamber of India, MSMEs, the manufacturing segment accounts for 7.9 per cent of GDP. Despite such importance, the sector has followed a traditional path with limited opportunities. As they have a crucial role in India’s economic growth and development, adopting digital solutions can bring positive outcomes and help meet sustainable development goals faster.
India houses more than six crore MSMEs, and adopting the latest technology can take the entire ecosystem to unimaginable heights. The manufacturing sector can immensely benefit from universal automation by encouraging higher energy efficiency and sustainability. This can also make MSMEs resilient enough to tackle supply chain related challenges and stakeholder concerns.
The entrepreneurs and business leaders have also realised the need of digitalisation and are utilising the technological innovation in MSMEs to lower carbon footprint, reduce emissions, better operational management and increase dependence on clean energy alternatives. A CRISIL report suggests the digital footprint of Indian MSMEs has been growing post the pandemic. They are not just using digital solutions to take products to a wider consumer base but also to ensure their products are in compliance with regulatory standards and are efficient. With growing consciousness around the hazards of climate change, it is crucial for businesses to efficiently leverage digital solutions to increase efficiency and adapt to changes for a sustainable future.
The alarming challenges of climate change have further heightened the importance of ESG practices. Companies today are ready to invest more in green, sustainable practices that benefit them in the long run. They now see it as an effective way to safeguard businesses from future risks. In this regard, digital transformation and technology can support companies in ESG practices with better management with data, building efficiency and lowering their emissions in manufacturing. Moreover, this will result in a positive impact on all the 3Ps—people, planet and profit.
With MSMEs going digital, knowing the technical know-how and digital literacy will also play a big role in efficiently utilising digital technologies. Organisations will have to bridge the skill gaps and make the workforce digitally agile. The future is digital, and with technologies evolving rapidly, emphasising skilling, upskilling, and reskilling initiatives will make the landscape more competitive, efficient, productive and relevant in the digital era.