It’s time for Industry 4.0

  • IASbaba
  • August 26, 2021
  • 0
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  • GS-3: Indian Economy & its development
  • GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation

It’s time for Industry 4.0

In news: The term ‘Industry 4.0’ was coined by the German government in 2011. It integrates ‘data’ with manufacturing and Information Technology. 

  • Additive manufacturing, Internet of Things, Cyber Physical Systems, Augmented Reality/Virtual Reality and data analytics are some of the technologies associated with Industry 4.0

Potential of Micro, Small and Medium Enterprises (MSMEs) 

  • MSMEs form more than 95% of the industries in India, produce more than 45% of the total manufacturing output and employ more than 40% of the workforce
  • According to the Economic Survey 2020-21, over 6 crore MSMEs employ more than 11 crore people and contribute roughly 30% to the GDP and half of the country’s export.
  • MSMEs are also ancillaries to larger enterprises, leading to a seamless supply chain integration.

However, MSMEs face challenges when it comes to adopting new technologies such as Industry 4.0. 

Reasons are: 

  • They lack awareness regarding Industry 4.0 and its benefits. 
  • They consider such technologies disruptive and having the potential to demolish their existing system. 
  • MSMEs will need to make major financial investments to adopt Industry 4.0. Investing in the right set of technologies will need experts and consultants as well.
  • Policy frameworks and steps that can assist MSMEs in adopting Industry 4.0 technologies have been missing.
  • For any new technology to be adopted, positive organisational culture and the support of people is required, which is lacking in many MSMEs


Though adoption of Industry 4.0 technologies by MSMEs requires overcoming many obstacles (as listed above), it will make them more competitive as they will be able to offer world-class quality products to customers.

Connecting the dots:

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