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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456nternational Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101
Challenges faced by MSME sector in Challenges faced by MSME sector in India: Digitalization of Industries:
Despite the huge potential, the small scale sector face Despite the huge potential, the small scale sector face Manufacturing Industry in India has its history of Manufacturing Industry in India has its history of
several confront and there have been the inadequacy several confront and there have been the inadequacy going through various phases of development over the going through various phases of development over the
in capital, technology and marketing. While SME in capital, technology and marketing. While SME period of time. It shows the dream of becoming one of the dream of becoming one of
sector in India did well in conditions of the absolsector in India did well in conditions of the absolute high growth sectors in the coming years. Scientific high growth sectors in the coming years. Scientific
information, its relative performance was on the verge information, its relative performance was on the verge and Technological developments have changed the and Technological developments have changed the
of stagnation. Still the services level remainslevel remains stagnant scenario. Process industries and machine builders and scenario. Process industries and machine builders and
on a per unit basis, but has improved considerably in on a per unit basis, but has improved considerably in Manufacturers are adopting with Innovative solutions Manufacturers are adopting with Innovative solutions
relation to the organized sector services. The number relation to the organized sector services. The number in the fields of software and automation. It is proved ftware and automation. It is proved
of unregistered units is much higher than the number gher than the number that SMEs are the backbone of Indian Industrial that SMEs are the backbone of Indian Industrial
of registered units. found that cost, excellence and that cost, excellence and development. SSIs have performed remarkably in the development. SSIs have performed remarkably in the
release time are the major pressures on the small release time are the major pressures on the small industrial development of the country. SSIs has great industrial development of the country. SSIs has great
industries. According to the study, SSIs speak out that industries. According to the study, SSIs speak out that share in industrial production, in export and in share in industrial production, in export and in
the major constraints are lack of progress conducive the major constraints are lack of progress conducive generating employment opportunities. Even having ent opportunities. Even having
environs, inadequate administration support and occupying majority share of the industry, they are occupying majority share of the industry, they are
incentive and poor infrastructure for training. SSIs incentive and poor infrastructure for training. SSIs suffering from various issues which are becoming various issues which are becoming
have highest competitiveness at local level and lowest have highest competitiveness at local level and lowest hindrances in their growth. The major issue of SMEs hindrances in their growth. The major issue of SMEs
competitiveness at worldwide MSMEs in India MSMEs in India level. is quality improvement. As there is extensive manual is quality improvement. As there is extensive manual
Use of information to optimize decisions, to define Use of information to optimize decisions, to define intervention in manufacturing processes and lack of facturing processes and lack of
quality standards, and optimization of working nd optimization of working skilled labor, they can’t compete with big industries. compete with big industries.
surroundings are the chief areas of competency surroundings are the chief areas of competency
expansion (Singh et al., 2010). According to the expansion (Singh et al., 2010). According to the As we are well acquainted that customer demands are As we are well acquainted that customer demands are
fourth all India census 2006-2007, conducted by 2007, conducted by dynamic and ever changing in nature, the pressure of dynamic and ever changing in nature, the pressure of
Ministry of Micro, Small and middle enterprisemiddle enterprise, Govt. competition is also increasing, SMEs have to face competition is also increasing, SMEs have to face
of India, it was uncovered that about 29.40 per cent of about 29.40 per cent of these major problems. Digitalization inDigitalization in SMEs will
the total units were suffering from illness and about the total units were suffering from illness and about definitely enhance efficiency. Digitalization enhance efficiency. Digitalization will
3.73 per cent of enterprises undergo from incipient 3.73 per cent of enterprises undergo from incipient reduce cost of production and it may minimize the cost of production and it may minimize the
sickness. Food products and beverages (17.73 per sickness. Food products and beverages (17.73 per manufacturing defects. Digitalization will help to manufacturing defects. Digitalization will help to
cent), apparel (10.23 per cent), textiles (9.11 per cent) cent), apparel (10.23 per cent), textiles (9.11 per cent) meet the international quality standards and it will meet the international quality standards and it will
were the top three industries that suffered from industries that suffered from help them to strengthen their position in the global help them to strengthen their position in the global
sickness. Percentage share of stopped up enterprises at sickness. Percentage share of stopped up enterprises at market.
nationwide level was about 22 per cent of the total nationwide level was about 22 per cent of the total
registered enterprises. According Confederation of Confederation of Digitalization for increasing Revenue: Digitalization for increasing Revenue:
Indian manufacturing (CII), Indian MSMEs face Indian manufacturing (CII), Indian MSMEs face The growth of SMEs can be driven by EThe growth of SMEs can be driven by E- commerce.
several challenges for progress. Some of the evils are several challenges for progress. Some of the evils are Fast growing E-commerce business will help to commerce business will help to
high cost of credit, incomplete access to equity high cost of credit, incomplete access to equity enhance the revenue. Reduction in cost and enhance the revenue. Reduction in cost and
capital, problems in supply to capital, problems in supply to government government operational efficiency will help to reduce the cost and operational efficiency will help to reduce the cost and
departments and agency, procurement of raw departments and agency, procurement of raw in turn it will increase the revenues to MSMEs.in turn it will increase the revenues to MSMEs.
resources at a competitive cost, inadequate ources at a competitive cost, inadequate
infrastructure facilities such as power, road, low skill infrastructure facilities such as power, road, low skill Digitalization for acquiring larger customer base:ion for acquiring larger customer base:
levels and lack of access to modern technology, lack levels and lack of access to modern technology, lack Ecommerce in large cities has flourished. As the Ecommerce in large cities has flourished. As the
of accomplished manpower, evils of storage space, of accomplished manpower, evils of storage space, number of internet users is increasing, SMEs can number of internet users is increasing, SMEs can
designing, packaging and manufactured goods designing, packaging and manufactured goods develop their customer base in wide range. develop their customer base in wide range.
display, absence of suitable device to revive/close sick sence of suitable device to revive/close sick Digitalization will definitely help SMEs to enhance Digitalization will definitely help SMEs to enhance
enterprises rapidly and lack of resources for branding enterprises rapidly and lack of resources for branding their customer base.
and marketing, lack of right to use to global markets and marketing, lack of right to use to global markets
(CII, 2010). Infusing competitiveness, infrastructure (CII, 2010). Infusing competitiveness, infrastructure Digitalization for increasing operational efficiency: Digitalization for increasing operational efficiency:
development and bringing vast population of MSMdevelopment and bringing vast population of MSMEs Digitalization will reduce the cost of operation. Digitalization will reduce the cost of operation.
in the unregistered sector to the usual is the main in the unregistered sector to the usual is the main Ecommerce will reduce the marketing cost such as Ecommerce will reduce the marketing cost such as
confront previous to the GOI at there. outsourcing to call centrescentres, advertisement etc.
Through the digitalization. SMEs can reduce all the hrough the digitalization. SMEs can reduce all the
T
operational expenditures.

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