According to reports, Micro, Small, and Medium Enterprises (MSMEs) and the country’s economy get a boost when sustained major investments take place in sectors that are reliant on high tech and aligned with global trends.
While increasing dependence on renewable sources of energy and building new cities that are smart, more resource efficient and meet the administrative needs of the future are some of the global investment trends, information and communication technologies are becoming all pervasive.
India has embarked on a new economic growth model that is well aligned with global technological and developmental trends. Generating 175 GW of electric power from renewable sources of energy of which 100 GW will come from solar power, building 100 smart cities, rejuvenation transformation of around 500 existing mid-sized cities that have a population of around 100,000, digitizing India, and making India a global manufacturing hub are some of the pillars on which the new growth model rests.
An interesting aspect of these growth initiatives is the synergy among them and their strong linkages with manufacturing and service sectors. These are large growing sectors and MSMEs are dominant stakeholders in the related ecosystems.
Thrust on renewable energy
India, despite emerging as the world’s third largest producer of electric power, is still not able to provide electricity to all and the International Energy Agency’s World Energy Statistics 2013, places the country at a dismal 110th position in terms of per capita consumption of energy.
The country remains a laggard both in terms of per capita consumption of electricity and access to all. As the county’s economy expands, its appetite for electric power is bound to keep further escalating in the years to come. It has to keep adding additional generating capacity for many more decades and significant share of that has to come from renewable sources of energy. There are compelling reasons for the country to place greater thrust on solar, wind and such others to ensure the country’s energy security, make electricity available to all, and overcome energy shortages.
In addition, it has to meet its international obligations to reduce global warming. At the recently concluded United Nations Climatic Change Conference, India committed to generate 175 GW of power from renewable sources of energy. This initiative has immense economic implications and for the growth of MSMEs. The World Bank study “Power for all: electricity access challenge in India” points out that the cumulative benefit would be greater than the cost of providing electricity service.
Implementing the renewable energy projects will spur a broad range of activities along the entire value chain relating not only to manufacturing but also to service activities such as design, erection, commissioning, metering, maintenance, and others. The value chain partners will comprise of a large number MSMEs making and supplying parts, components, panels, enclosures, and subsystems, providing technology and on-site services, developing application programing interfaces, and such others.
The author is an Independent Industry Analyst/columnist and Automation Consultant with extensive experience in writing industry and technology trend articles, market research reports, case studies, white papers, and automation & manufacturing IT insights.