Page 253 - ICDEBI2018

International Journal of Trend in International Journal of Trend in Scientific Research and Development (IJTSRD)Research and Development (IJTSRD)
International Open Access JournalInternational Open Access Journal | www.ijtsrd.comwww.ijtsrd.com

ISSN No: 2456 ISSN No: 2456 - 6470 | Conference Issue – ICDEBIICDEBI-2018

INTERNATIONAL CONINTERNATIONAL CONFERENCE ON DIGITAL ECONOMY AND FERENCE ON DIGITAL ECONOMY AND

ITS IMPACT ON BUSINESS AND TS IMPACT ON BUSINESS AND INDUSTRYINDUSTRY

Organised By: V. P. Institute of Management Studies & Research, SangliOrganised By: V. P. Institute of Management Studies & Research, SangliOrganised By: V. P. Institute of Management Studies & Research, Sangli

D
Digitalization of MSME’s : A Need of an HDigitalization of MSME’s : A Need of an Higitalization of MSME’s : A Need of an Hour

Dr. Sudhir V. Mane
Assistant Professor, Head of DepartmentHead of Department of Commerce, Shivneri Mahavidyalaya,mmerce, Shivneri Mahavidyalaya,
Shirur Anatpal, Shirur Anatpal, Latur, Maharashtra, India

ABSTRACT
MSMEs in India are a significant donor to the Indian donor to the Indian developed, whereas 17 per cent of the enterprise was developed, whereas 17 per cent of the enterprise was
country and are drivers of progress. By its less assets country and are drivers of progress. By its less assets engaged in the services behaviourbehaviour. The residual 16 per
oriented and high labour absorption character, MSME oriented and high labour absorption character, MSME cent of the enterprise were busy in repairing and cent of the enterprise were busy in repairing and
sector has made significant assistance to the assistance to the conservation. About 90 per cent of the firms were conservation. About 90 per cent of the firms were
developed production, services formation, rural developed production, services formation, rural proprietary owned firms. The manufacturing sectoproprietary owned firms. The manufacturing sector is
industrialization and export of the country. It is industrialization and export of the country. It is an significant segment and considered to be a key an significant segment and considered to be a key
predictable that in terms of value, the sector accounts predictable that in terms of value, the sector accounts development driver of the Indian country like in development driver of the Indian country like in
for about 45 per cent of the manufacturing for about 45 per cent of the manufacturing several developing countries. several developing countries. By NMCC and
manufacture and 40 per cent of the totalmanufacture and 40 per cent of the total export of the NASSCOM (2010), the Indian manufacturing NASSCOM (2010), the Indian manufacturing
country. Over 6000 products ranging from traditional country. Over 6000 products ranging from traditional separation has over 53 lakh manufacturing units with separation has over 53 lakh manufacturing units with
to high-tech items are manufactured by MSMEs in tech items are manufactured by MSMEs in 99 per cent of the units employ less than 10 workers. he units employ less than 10 workers.
India. The sector creates largest services opportunity India. The sector creates largest services opportunity Food & beverages, textiles, nonFood & beverages, textiles, non-metallic mineral
next only to agriculture. The present paper is based on next only to agriculture. The present paper is based on products, chemical products and machinery &utensils products, chemical products and machinery &utensils
secondary data which covers MSMEs, their role, SMEs, their role, are the top 5 verticals in terms of number of units and are the top 5 verticals in terms of number of units and
digitalization in MSMEs, their benefits etc.digitalization in MSMEs, their benefits etc. t they account for nearly 75 per cent of the total number hey account for nearly 75 per cent of the total number
of units in the manufacturing sector. its in the manufacturing sector. MSMEs in India
INTRODUCTION S
Small scale sector is the spine of Indian mall scale sector is the spine of Indian
MSMEs in India MSME Sector plays a major role in MSME Sector plays a major role in manufacturing sector with 90 per cent of the total manufacturing sector with 90 per cent of the total
India's there export performance. According to the India's there export performance. According to the industrial units. However, according to the statement industrial units. However, according to the statement
Ministry of MSME (2011b), just about 45Ministry of MSME (2011b), just about 45-50 per cent by NMCC and NASSCOM (2010), the contribution of by NMCC and NASSCOM (2010), the contribution of
of the Indian export is have a say by this sector. This of the Indian export is have a say by this sector. This Indian manufacturing to the national GDP has cturing to the national GDP has
takes place through merchant exporters, trading takes place through merchant exporters, trading stagnated over the last few years by about 15 per cent stagnated over the last few years by about 15 per cent
houses and export houses. They may also be in the rt houses. They may also be in the in spite of the progress in the builtin spite of the progress in the built-up sector. The
form of export instructions from big units or the form of export instructions from big units or the donation level is found to be much lower when donation level is found to be much lower when
manufacture of part use in over exportable goods. It manufacture of part use in over exportable goods. It benchmarked with comparable economies such as benchmarked with comparable economies such as
would shock lot of to know that non-traditional crop traditional crop China (39.3 per cent), Thailand (35.2 per cent), hailand (35.2 per cent),
account for more than 95 per cent of the MSME account for more than 95 per cent of the MSME Malaysia (31.1 per cent), Indonesia (24.7 per cent) Malaysia (31.1 per cent), Indonesia (24.7 per cent)
export. In the last decade, the export arrangement has decade, the export arrangement has and Vietnam (20.8 per cent) (NMCC & NASSCOM, and Vietnam (20.8 per cent) (NMCC & NASSCOM,
been additional fuelled by the progress of clothes, been additional fuelled by the progress of clothes, 2010). The small sale sector is 2010). The small sale sector is a significant
leather and gems & jewellery units of this sector. The units of this sector. The component of the foundation layer of manufacturing component of the foundation layer of manufacturing
product groups where the sector dominates in exports product groups where the sector dominates in exports sector and entrepreneurial actions insector and entrepreneurial actions in India. As the
are sports education items, ready-to-wear garments, wear garments, productivity and performance of large manufacturing productivity and performance of large manufacturing
woollen garments &woollens, plastic products, , plastic products, firms would be influenced by the competitiveness of firms would be influenced by the competitiveness of
processed food and leather products. According to the processed food and leather products. According to the their suppliers, i.e., mainly MSMEs, it is significant to their suppliers, i.e., mainly MSMEs, it is significant to
fourth survey of MSME, 67 per cent of the enterprises fourth survey of MSME, 67 per cent of the enterprises improve productivity levels of MSME to improve the improve productivity levels of MSME to improve the
in the register MSMEs sector were occupied in in the register MSMEs sector were occupied in manufacturing sector as an entire.ntire.

@ IJTSRD | Available Online @ www.ijtsrd.comwww.ijtsrd.com | Conference Issue: ICDEBI-2018 | | Oct 2018 Page: 245