Digitalization can take Indian economy to new height, says P K Jha

Ahmedabad (Agency) : India’s conducive business environment, path-breaking visions and initiatives like Aatmnirbhar 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, businesses have realised they must become efficient and future-ready with digitalisation. Addressing the large gathering at Ahmedabad on Digital soln for the Indian MSME in an event Mr P.K. Jha Central Zonal head of four states  of NSIC Ministry of MSME has presented their views and applauded the industrialist existing entrepreneur to adopt right digital tools.

Mr Jha said Digitization is like a superpower which can transform small and medium businesses into unstoppable forces in the Indian economy. 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.

India boasts about 63 million MSMEs enabling around 11.10 crore jobs and MSMEs contribute to 23% of employment in the nation. Not only do small to medium businesses help in employee empowerment but also contribute the lion’s share to a nation’s financial health. 

“The scope and scale of the contribution SME to a country’s economy as per World Bank estimate, which suggests that SMEs represent about 90% of businesses and more than 50% of employment worldwide. Further, they are likely to play a pivotal role in addressing the need for creating 600 million new jobs by 2030 to absorb the growing workforce”, said jha.

In India, these enterprises contribute to over 33% of Gross Domestic Product (GDP) and employ over 110 million people.

and are responsible for 50% of the country’s total exports. Mr Jha added that since associated with Gujarat MSME since last 28 years pertinent to mention the contribution of Gujarat, Gujarat contributes more than 17% in total exports of the nation They are also accountable for one-third of India’s manufacturing output.Gujarat boasting a GDP that contributes 8.36% to the nation’s total.

The government’s vision of digital India, MSMEs are experiencing a significant transformation in their operations and growth prospects. It is essential for MSMEs to embrace digitization to stay ahead of the curve and thrive in the digital age

Digitisation of micro, small, and medium enterprises (MSMEs) can add $156-$216 billion to India’s GDP by 2024.  Whatever be the size or industry of the MSME, going digital has proven to be advantageous by way of cost reduction, standardisation and automation of business processes, minimising the reliance on manpower, and enhancing competitiveness by gaining insight into consumer behaviours and experiences, among many other benefits. 

 For digital transformation to be effective and successful, technology adoption by companies, including MSMEs, must be integrated into all areas of the business.