International Journal For Multidisciplinary Research

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Technological Upgradation and Policy Support for Indian Small-Scale Industries Under Global Competition

Author(s) Dr. Shyamu Ganta
Country India
Abstract Small-Scale Industries (SSIs) are a fundamental component of the Indian economy and play a key role in the industrial production, export, and employment creation sectors. However, the advent of a speeded-up and globalised world and trade liberalisation has posed new challenges to these businesses as they are faced with unprecedented challenges from technologically advanced multinational enterprises and new competitors from emerging markets. This paper traces the evolution of technological upgradation of Indian SSIs and critically reviews the policy architecture, which successive governments have implemented to ensure the competitiveness of Indian SSIs in the international market. The paper presents the trends of technology adoption and structural constraints to technology upgradation using secondary data collected from the Ministry of MSME, Annual Survey of Industries, SIDBI, and World Bank SME competitiveness indices, and assesses the effect of flagship schemes such as Credit Linked Capital Subsidy Scheme (CLCSS), Zero Defect Zero Effect (ZED) certification, and ASPIRE programme. The findings show that there is a big technology gap between Indian SSIs and their counterparts in the developed and East Asian economies, which is due to supply-side constraints like low levels of finance, lack of institutional linkages, and policy implementation deficits. The paper ends with evidence-based suggestions for a rejuvenated policy framework, incorporating digital readiness, clusters and innovations, and focused financial instruments to help Indian SSIs to be competitive in global value chains.
Keywords Small Scale Industries, Technological Upgradation, MSME Policy, Global Competitiveness, Credit Linked Capital Subsidy Scheme, Digital Manufacturing, Industrial Clusters, Trade Liberalisation, India.
Field Sociology > Economics
Published In Volume 5, Issue 3, May-June 2023
Published On 2023-06-03
DOI https://doi.org/10.36948/ijfmr.2023.v05i03.82685
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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