As the world begins to enjoy the fruits of Industry 4.0, comment on how India can ensure that its small enterprises aren’t left behind.

The world is currently going through a fourth industrial revolution, called Industry 4.0 and India being one of the fastest growing economies has the potential to lead it. Industry 4.0 can revolutionize the Indian market.

Industry 4.0:

• It encompasses rapid change in technology, industry and society.
• It encompasses technologies like Artificial intelligence, robotics, internet of things, genetic engineering, quantum computing, machine learning, big data, cloud services and other technologies.
• It consists of a complex cyber-physical system which synergises production with digital technologies.
• The increasing demand and competition in market is driving its growth.

Constraints for MSMEs to catch up:

• MSMEs are the backbone of the Indian economy and assume a pivotal role in driving the government’s ‘Make in India’ initiative for an Atmanirbhar Bharat.
• The sophisticated technologies needed for upgradation to industry 4.0 require a significant capital expenditure and skilled labour.
• The MSMEs generally lack capital investments and often work on smaller profit margins.
• They do not enjoy economies of scale and hence lack capital investments in advanced technologies.
• The lack of skilled labour also poses a challenge to India’s MSMEs for Industry 4.0 adoption.

Way forward:

Given the critical role of MSMEs in promoting inclusive growth, they can not afford to miss the journey of Industry 4.0. The government needs to support them in all possible ways including the financial as well as technical support.

Topics: GS-III: Changes in Industrial Policy and Their Effects On Industrial Growth