Digital Technologies for Sustaining SME Growth in India

SMEs play a very important role in the economic development of a country, contributing to almost 30% of the gross domestic product and 40% of total exports. They offer huge employment opportunities with minimal capital investments. There are several schemes providing financial assistance, skill development, infrastructure development, marketing assistance, and technological upgradation. Like any other sector, SMEs were badly affected by the mobility restrictions during the pandemic. E-commerce and digitization were key to the survival and growth of SMEs during and after the pandemic era. In the year 2020–2021, more than 60% of the SMEs sold their products through online channels. Technology played a pivotal role in helping SMEs combat competition from large enterprises. There are also challenges for technological upgradation and innovations for SMEs. The positive point for SMEs is that they are inspired and rooted deeply in culture. This helps in generating employment while working in unison with the environment. This chapter aims to discuss how SMEs are deeply rooted in the Indian cultural background, providing business opportunities and employment in the local regions. Being close to nature, they also tend to fulfill the Sustainable Development Goals of the United Nations. Green innovations have played an important role in sustainable innovations in the SME sector. Further, the adoption of new technologies by SMEs has helped them enhance their overall efficiency.