Sensors, AI at core of India’s plan to modernise MSMEs, cut export rejections

Subscribe to enjoy similar stories. New Delhi: India is planning a massive digital upgrade of its micro, small and medium enterprises (MSMEs) as part of a broader push to align domestic manufacturing with global quality, and sustainability standards, in a move aimed at improving export competitiveness and reducing shipment rejections.

The government is working on an ambitious plan to help 72 million MSMEs meet stricter compliance and export-market requirements on machine-level data, traceability and energy efficiency by equipping them with essential digital factory tools such as machine monitoring, energy management systems and shop-floor software, three people directly involved in the process said. The first pilot to use sensors, data analytics, automation and artificial intelligence (AI) to capture real-time information on machine performance, energy consumption, downtime and maintenance will be launched in Gujarat under the World Bank-backed Raising and Accelerating MSME Performance (RAMP) scheme for 750 identified manufacturing units, and will be implemented through the National Productivity Council (NPC), the first of the three persons cited earlier said, all of whom spoke on the condition of anonymity.

“Limited visibility into shop floor operations remains a key constraint for many MSMEs, often resulting in low productivity, high energy costs, inconsistent quality and unplanned downtime. By digitising basic shop floor monitoring, the pilot aims to help unit owners identify hidden productivity losses, stabilise output, reduce energy wastage and shift from reactive to planned maintenance," the second person said.