The jury dialogues serve as a prelude to the ET MSME Awards. During these conversations, Miloni Bhatt, Editor, Digital Broadcast, Economictimes.com, spoke with three jury members: Mukesh Mohan Gupta, President of the Chamber of Indian Micro Small and Medium Enterprises; Srikanth Srinivasan, Vice President of NASSCOM; and, Madan Padaki, Co-founder of the Global Alliance for Mass Entrepreneurship in India, on the topic ‘Roadmap to Industry 5.0: Challenges and Opportunities for MSMEs in India.’
With its focus on human centricity, sustainability, and resilience, Industry 5.0 represents a significant departure from its predecessor, Industry 4.0. According to Srinivasan, while Industry 4.0 primarily focused on connected devices and data analysis to enhance business operations, Industry 5.0 aims to create a collaborative environment where humans and machines complement one another. This collaboration leverages emerging technologies such as artificial intelligence (AI) and robotics to enhance human skill utilisation and thereby optimise routine tasks, resulting in increased efficiency, safety, and sustainability and leading to more efficient and safer operations. Srinivasan encapsulates the essence of Industry 5.0, stating, “4.0 is looked at as connected devices. But if you look at 5.0, it is about collaboration between humans and machines, where they complement and supplement each other.”
Industry 5.0 and India’s potential to become a $1 trillion economy
The impact of Industry 5.0 on the larger Indian economy is substantial. The World Economic Forum underscores India’s Gross Domestic Product (GDP) to potentially grow by $1 trillion by 2030 through the adoption of Industry 4.0. With Industry 5.0 on the horizon, Padaki envisions even more promising possibilities of boosting India’s economic growth. He states that some estimates project India becoming a $30-$40 trillion economy by 2047, with MSMEs playing a crucial role in this transformation. However, he cautions that significant growth in per capita GDP is critical to realise this vision.
Padaki also underscores the importance of bridging the gap between the millions of small enterprises and the exponential growth needed for India’s economy. Industry 5.0 offers a unique opportunity to reimagine economic activities in sectors like the Kirana store business. “Industry 5.0 gives us an opportunity to reimagine where and how the growth will come from,” he adds.
The Co-founder of the Global Alliance for Mass Entrepreneurship in India envisions that the integration of exponential technologies, such as drones, robots, and 3D printing, will create new economic opportunities, enhancing the productivity and services offered by small businesses. This not only benefits the businesses but also contributes to job creation, talent development, and the growth of local economies.
The road ahead for MSMEs
Gupta emphasises the significance of MSMEs to the larger economy, which contribute over 30% to India’s GDP, accounts for over 90% of the enterprises and employs over 100 million people in critical areas and now with recent government initiatives, even traders have been included in the MSME fold. Furthermore, Gupta stresses upon the importance of MSMEs for the banking sector. “You see, the credit gap is very important, but where is the profit coming from for the banking sector? It comes from the MSME sector; we have seen that most of the large corporations, the government, PSU institutions, they want the bare minimum rate of interest, they don’t want to pay any service charges or any processing fees.”
The Chamber of Indian Micro Small and Medium Enterprises notes that while MSMEs face various challenges, including technology adoption and cybersecurity concerns, they also have numerous opportunities. These opportunities include innovation, digital adoption, and the ability to reach global markets, thanks to initiatives like the One Nation One Digital Platform (ONDC).
The distinguished jury members highlighted the prospects that lie ahead for Indian MSMEs as these enterprises, which are the lifeblood of the country’s economy, are well-positioned to leverage the opportunities presented by Industry 5.0.
The ET MSME Awards serves as a catalyst for recognising and celebrating the achievements of small and medium-sized businesses. By shedding light on the unique challenges faced by these businesses and entrepreneurs, they provide a solutions-centric blueprint for these enterprises to chart a course towards growth and seize emerging opportunities The platform also encourages MSMEs to embrace innovation and modernisation given that the journey towards Industry 5.0 holds enormous promise for MSMEs in India.
For more information about the ET MSME awards 2023, visit our website.
