Implementation of advanced technologies: IIoT in MSME manufacturing sector

Abstract

India has a GDP growth rate of around 6.1 % for the year 2018-19 1. The Micro, Small, and Medium Enterprises (MSME) will play a significant role in sustaining the Indian economy's growth. The share of the MSME Sector in GDP growth was almost 28.9% for 2016-172 while Manufacturing contribution is around 30%+ to the overall MSME sector. The ‘Make In India' initiative aims to boost the confidence of the manufacturing industry. The role of MSME enterprises is going to be critical for sustainable growth and contribution to India's GDP. MSMEs today face different challenges like technological obsolescence, supply chain anomalies amidst increasing global competition. The industries are gearing up for a digitized world. While the larger organizations have implemented a comprehensive digitization strategy, the MSMEs seem to be hesitant to adopt digital technology to become a seamlessly connected supply chain. Implementing IoT technologies will help MSMEs take a right step in the digital world by enhancing their production processes and improving productivity and product mix. However, this is not so easy as multiple barriers exist in the implementation of advanced technologies. This project attempts to understand the barriers in technology implementation, recommendations, and the possible impact of implementing automation in the MSME sector. A survey of implementing the Industrial Internet of Things with a random sample of MSME Enterprises in Pune is done to understand the objectives better and set directions. The present pandemic scenario calls for maintaining social distance, provides an opportunity window to progress technology implementation in the MSME sector.