Digitalisation of Indian business is majorly driven by the rapidly advancing digitisation of consumers.This has led to increased data traffic and accelerated establishment of new tech-based startups to take advantage of the growth opportunities.
The Micro, Small & Medium Enterprises (MSME) sector contributes about 8% of GDP. It also plays a pivotal role in development of the economy by employing almost 80 million people, contributing about 45% of the total manufacturing output and 40% of exports of the country. However, in a rapidly digitalizing economy, these industries fail to keep pace. Online shoppers in India are growing at compounded annual growth rate (CAGR) of 18% and will reach 220 million by the year 2020. Unfortunately, out of the 51 million SMEs in India, less than 5-6% have an online presence. Research shows that the companies migrating to an online platform could potentially increase their revenues by 51%, improve operational efficiency and broaden their customer.
The issues hindering companies’ shift to a digital platform range from lack of technical knowledge & funds to inefficient regulatory framework. However awareness about this is increasing with many enterprises striving to have an online presence. The Government is also aiding these efforts by introducing schemes like Digital India, Start-up India, E- Governance etc.
In our continuous endeavor to help, support and nurture Indian SMEs, we have come up with a publication on Digitalisation of SMEs. In the report, we have tried to bring out the impact of digitalisation, the challenges SMEs are facing on the road to transformation and how can they make their digital journey successful. Click to download the complete report.