MSMEs: The Backbone of India's Economy
Technology and Productivity
Most small firms use simple technology and low-skilled labour, so adopting better machines and software can raise output.
Productivity in MSMEs is often low.
The gap
Small firms often produce far less per worker than large firms.
Barriers
Lack of money, skills and information holds back new technology.
Digital tools
Accounting apps, digital payments and online marketplaces are spreading.
Support
Technology centres and training programmes help bring modern methods to small firms.
An accounting app
A small trader uses a phone app to track sales and invoices, and gets a loan approved faster.
Expecting technology to help without skills
Training is needed.
Key takeaways
- Productivity is low.
- Cost and skills are barriers.
- Digital tools are spreading.
- Training centres help.
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