A RESEARCH PAPER ON THE NEED FOR DIGITALIZATION OF SMES IN INDIA

Abstract

 With the introduction of Industry 4.0, there has been a revolutionary change in the way of manufacturing. Digitalization being an important factor of this insurgence is playing a crucial role in enhancing the efficiency of production, producing better quality goods and helping in construction of novel and innovative business models. The Small and Medium scale Enterprises are backbone to developing nations like India, which are a source of income and employment to millions of families. In a country with a huge demographic sector and abundant labour, SMEs play a crucial role in the development and growth of the economy. The contribution of SMEs to the national GDP is around 29% and 49.6% to the total exports in the financial year 2018-19 (PIB Delhi, 2019). That is why they are called as the growth engine of the Indian economy. But in digital era, they fail to make their stand in the global market due to lack of technology upgradation and digitalization. The focus of this paper is on the need and requirement for digitalization in SMEs in India. With the present government schemes like Digital India, Make in India, E-Governance, a new and emerging consumer market the paper further explores possible opportunities and challenges in the way for adopting a complete digitalization of SMEs.