Embracing Industry 4.0: Pathways and Implications for Micro, Small, and Medium Enterprises (MSMEs) in India

Abstract

MSMEs significantly contribute to GDP and employment; however, they face challenges such as limited access to technology and financial resources, which affect their competitiveness on a global scale. Through a comprehensive literature review, this study underscores the pivotal role of digital technologies, including the Internet of Things (IoT), Artificial Intelligence (AI), and Cyber-Physical Systems (CPS), in transforming MSME operations. It explores the benefits of technology adoption, such as enhanced productivity, efficiency, and market reach. Furthermore, the paper identifies major barriers to technology integration and proposes strategies to surmount these obstacles, thus promoting a more resilient and competitive MSME sector in India. The findings indicate that while the journey towards digital transformation is filled with challenges, strategic government support and customized technological solutions could empower MSMEs to excel in the digital economy.