MSMEs urged to leverage opportunities to grow into larger enterprises; IT Secretary

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MSMEs urged to leverage opportunities to grow into larger enterprises; IT Secretary

MSMEs urged to leverage opportunities to grow into larger enterprises; IT Secretary

Industry News
Jul 12,24

Benefiting from the AI revolution and improving productivity may also involve retrofitting existing manufacturing facilities.

MSMEs urged to leverage opportunities to grow into larger enterprises; IT Secretary

Electronics component manufacturing in India presents a significant opportunity for MSMEs (Micro, Small, and Medium Enterprises) to thrive, according to IT Secretary S Krishnan. Speaking at the CII MSME Growth Summit, Krishnan emphasised that the Ministry of Electronics and Information Technology (MeitY) is actively exploring ways to enhance the electronics components ecosystem in the country.

Krishnan urged MSMEs to leverage growth opportunities, adopt technology, and digital tools to expand and transition into larger enterprises. He noted that India's aspirations to become a major electronics manufacturing hub are crucial for employment, resilience, and exports, while also ensuring quality products for domestic consumers.

"There is a huge requirement for components, and MSMEs have a significant role to play in meeting this demand," Krishnan said. He added that component manufacturing not only offers substantial opportunities for MSMEs but is also a national necessity for their success.

MeitY is keen on promoting greater manufacturing of electronics components in India, encouraging companies of all sizes to participate in this sector. Krishnan highlighted India's success in mobile manufacturing, where the country now produces 33 crore mobile units annually, compared to 21 crore units imported a decade ago, with only 50 million units manufactured locally.

Despite this success, Krishnan pointed out that the value addition in mobile phone manufacturing is currently around 18-20%. He emphasised the need for India to remain competitive by increasing the proportion of components manufactured locally.

"For electronics manufacturing to take deep roots in India, a significant proportion of components must also be produced here," he stated. The goal is to double the value addition to 35-40% in the next five years, with MSMEs playing a crucial role in this ecosystem.

Krishnan highlighted the importance of Industry 4.0 and AI for MSMEs, stressing that adopting new technologies is essential for their growth and success. The IT Ministry has launched various initiatives and programs to support MSMEs in integrating technology. Benefiting from the AI revolution and improving productivity may also involve retrofitting existing manufacturing facilities.

"There is a huge opportunity for retrofitting across MSMEs, allowing the latest digital technology to be applied without completely replacing equipment," he added. Technology and digitization are crucial for the MSME sector, enabling faster credit appraisals from financial institutions and aiding in marketing efforts.

India's electronics manufacturing sector offers a vast potential for MSMEs to succeed, with strategic support from the government and an emphasis on technology adoption and local component production.

(Source: PTI & BS)