Micro, Small and Medium Enterprises have substantially contributed to the economic development of our country. The MSME sector in India occupies the second position next alone to agriculture in terms of employment generation. This sector accounts for about 95% of the industrial units, 45% of manufacturing output, 40% of total exports of the country. MSMEs have played a prominent role in the development of the country in terms of creating employment opportunities, scaling manufacturing capabilities, curtailing regional disparities, balancing the distribution of wealth, and contributing to the GDP significantly. Development of the sector is therefore extremely important as it holds the key to inclusive growth and plays a pivotal role in holistic development of the country.
Tamil Nadu accounts for the largest number of (15.07%) Micro, Small and Medium Enterprises (MSMEs) in the country with 6.89 lakhs registered MSMEs, producing over 8,000 varieties of product for a total investment of more than Rs.32,008 crores. Tamil Nadu is a leader in Auto parts and components, Readymade Garments and Leather and leather goods.
In this era of globalization, Technology is increasingly becoming a key differentiator for developing economies like India in order to sustain growth rates, and especially to the MSME sector in order to ensure global competitiveness. MSMEs, with limited information about the Global market and access to funds, typically think short term. They tend to minimize capital investment with the objective of keeping the cost low. This approach has brought many Indian MSME suppliers to the lower end of the global value chain and ultimately made them uncompetitive as the suppliers of stand-alone products.
In line with the global trend, MSMEs also face their own set of unique challenges related to technology adoption & absorption on account of their scale of operations, market linkages, access to “affordable” finance, policy & regulatory compliances etc. In spite of these issues impacting their ability to invest in technology upgradation / modernization, MSMEs are increasingly looking at investing in technology for meeting the changing market requirements, reducing the cost and complying with regulatory norms etc.
Considering the significant impact of MSMEs to the socio-economic development of the country, it is imperative to support the growth and development of MSMEs through all possible enabling mechanisms.
In this background Tamil Nadu Technology Development & Promotion Centre (TNTDPC) of CII is organizing MSME Tech Summit on August 2018 in Chennai. The flagship initiative is bestowed with the theme “Building Global Competitiveness through Technology and Innovation”.