Digital India, Digital MSMEs: Empowering Viksit Bharat’s Small Businesses

India is experiencing an incredible shift fueled by technology, paving the way for a new era of socio-economic progress. As technology continues to evolve at a rapid pace, it has become a gateway to boundless opportunities, empowering individuals from tier 2, tier 3 and beyond to find meaningful jobs, acquire essential skills, and contribute significantly to the nation’s economic prosperity. 

With an enormous user base of over 750 Mn people, the internet has played a significant role in driving this transformation, reshaping how we live, work, and conduct business across the country.

However, despite the widespread impact of the internet, many challenges persist in ensuring that everyone has equal access to digital resources. Issues such as inadequate infrastructure, affordability constraints, and limited digital literacy levels prove to be barriers to widespread internet adoption. 

Acknowledging these challenges, the government has launched the “Digital India” initiative, aimed at bridging the digital gap and promoting digital inclusivity nationwide. 

In the Interim Budget 2024, Union Finance Minister Nirmala Sitharaman highlighted the critical importance of India’s digital infrastructure in driving economic formalisation in the modern era. She emphasised the need for robust digital frameworks to enhance economic growth and the country’s competitiveness on the global stage. 

Sitharaman’s remarks echoed the overarching vision of Prime Minister Narendra Modi’s – Viksit Bharat or Developed India. His vision represents a comprehensive roadmap towards prosperity, with a key focus on inclusive economic participation and building world-class infrastructure.

Yet, amidst these remarkable advancements, one crucial aspect cannot be overlooked – the importance of inclusive growth in India’s less developed regions. While technology has undoubtedly brought about significant transformations, there is an urgent need to empower small businesses in these areas to fully adopt the vision of a Digital India. 

A recent assessment by Vi Business (Arm of Vodafone Idea) encompassing nearly one lakh MSMEs says that less than 60% of businesses have embraced digitalisation across various verticals.

As we comprehend the transformative power of technology for small businesses, it becomes evident that these small businesses don’t need to just adapt to digital tools but also utilise them for expansion. The initiatives that can empower MSMEs of Viksit Bharat are as follows:

Digital Infrastructure Development

One of the key pillars to empower MSMEs is to bridge the digital divide through robust digital infrastructure development. Initiatives like ‘BharatNet,’ aim to connect all Gram Panchayats with high-speed optical fibre broadband, which has been essential in providing access to digital resources in rural areas. 

As of December 2023, over 1.5 lakh Gram Panchayats have been connected, laying the groundwork for a thriving digital ecosystem in these regions.

Digital Literacy

In addition to infrastructure development, digital literacy initiatives play a crucial role in empowering businesses. Programs like the ‘Pradhan Mantri Grameen Digital Saksharta’ Abhiyan (PMGDISHA) have been instrumental in imparting essential digital skills to rural citizens. 

As of March 2023, over 1 crore rural citizens have been digitally empowered through PMGDISHA, equipping them with the knowledge and skills needed to adopt digital tools for business growth.

Democratising Technology

Moreover, ensuring easy access to the right set of digital tools is essential for MSMEs to thrive in the digital age. Providing access to affordable and user-friendly technologies can enable these businesses to streamline their operations, explore new markets, and compete more effectively in today’s digital economy. 

Leveraging tools such as cloud computing, digital payment platforms, and business management software, businesses can overcome traditional barriers and unlock their extreme potential.

Empowering Personalised Connections

With the internet economy poised to hit $1 Tn by 2030, our nation’s wealth of tech talent is driving rapid innovation. Leveraging tools like generative AI, even local artisans can now craft customised messages for each customer, promoting genuine connections beyond transactions. 

This AI integration revolutionises customer interactions, offering real-time engagement and tailored recommendations that enhance the customer experience.

In 2023, the government launched – ONDC, a path-breaking initiative to revolutionise e-commerce by levelling the playing field for sellers and offering consumers more choices. This challenged the dominance of existing platforms, aiming to boost businesses and enhance consumer welfare.

Nurturing Local Talent And Promoting Sustainable Practices

Investing in skill development programs and entrepreneurship initiatives tailored to the needs of specific regions will nurture local talent, leading to a new generation of business leaders who are equipped to drive economic growth and innovation locally. 

Furthermore, promoting sustainable business practices will not only benefit the environment but also ensure the long-term viability of the business.

Conclusion

In essence, technology has the potential to transform small businesses while promoting inclusivity and empowerment. With India’s strong digital infrastructure and various initiatives by the government, the country is on a path to global digital leadership. 

By overcoming barriers and harnessing innovation, India’s digital landscape holds enormous promise for its people and the world. 

From improving governance to empowering citizens and driving economic growth, Digital India represents a path to a more inclusive, prosperous, and digitally connected nation.