Importance of Manufacturing for Technological and Socioeconomic Developments

There is a profound technological transformation that is affecting the industry. This is, in part, a reaction to the needs of users as well as a result of the development of both traditional production elements and organizational production process managed by MES/MOM.

Today, terms like the Internet of Things, Big Data, cloud, mobility and analytics are commonly used, although not always with the correct meaning, to identify the big trends of technological evolution. Given the many misunderstandings surrounding these terms, it is wise to keep the following in mind to help make sense of it all:

• Internet of Things: Things that can communicate their status, needs and problems using smart sensors and that transmit this information over the Internet through wired or wireless networks;
• BIg Data: Large volumes of highly variable data types, needing to be processed at high speeds with innovative and economic systems and being capable of producing information to support decision-making;
• Cloud: Centralized and scalable IT structures, made available as needed without the burden to establish and maintain the infrastructure;
• Mobility: Information available anywhere, regardless of the device used; and 
• Analytics: Statistical models or mathematical algorithms applied to the available data to create information otherwise not immediately available. This is useful to predict scenarios and support manual decision-making or implement automated decision-making

Socioeconomic Developments

The following are some specific roles that SSIs play in the Indian economy:

1. Increases Production

India is one of the world’s fastest growing economies in the world. Consequently, its production output is massive. It is pertinent to note that SSIs contribute almost 40% of India’s gross industrial value.

These industries produce goods and services worth over Rs. 40 lakhs for every investment of Rs. 10 lakhs. Furthermore, the value addition in this output increases by over 10%.

Here is another interesting statistic about Small scale industries. The number of Small Scale Industries in India increased from around 8 lakhs in 1980 to over 30 lakhs in 2000.

This figure has grown even more in recent years owing to the government’s ‘Ease of Doing Business’ policies.

As a result of this, the total industrial production output rose tremendously in the last few years. SSIs are, therefore, strongly responsible for the growth of India’s economy.

2. Increases Export

Apart from producing more goods and services, SSIs have been able to export them in large numbers as well.

Almost half of India’s total exports these days come from small-scale businesses.

35% of the total exports account for direct exports by SSIs, while indirect exports amount to 15%.

Even trading houses and merchants help SSIs export their goods and services to foreign countries.

3. Improves Employment Rate

It is important to note firstly that Small Scale Industries employs more people than all industries after agriculture.

Almost four persons can get full employment if Rs. 10 lakhs are invested in fixed assets of small-scale sectors.

Furthermore, SSIs employ people in urban as well as rural areas.

Consequently, this distributes employment patterns in all parts of the country and prevents unemployment crisis.

4. Open New Opportunities

Small-scale industries offer several advantages and opportunities for investments.

For example, they receive many tax benefits and rebates from the government. The opportunity to earn profits from SSIs are big due to many reasons.

Firstly, SSIs are less capital intensive. They even receive financial support and funding easily.

Secondly, procuring manpower and raw materials is also relatively easier for them. Even the government’s export policies favour them heavily.

5. Advances Welfare

Apart from providing profitable opportunities, Small Scale Industries play a large role in advancing welfare measures in the Indian economy as well.

A large number of poor and marginalized sections of the population depend on them for their sustenance.

These industries not only reduce poverty and income inequality but they also raise standards of living of poor people. Furthermore, they enable people to make a living with dignity.