Editorial of the Day – 26 August 2021

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Main Editorial for Discussion :- It’s time for Industry 4.0

Here the author says that Industrial revolution 4.0 is already in progress where the Internet, ICT and latest technologies will augment the already established production process.

The term ‘Industry 4.0’ was coined by the German government in 2011.

Components of Industry 4.0 :- 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. With the help of these technologies, the manufacturing industry will be able to make data driven decisions. The reduced costs of electronics like sensors, transmitters, and cloud have allowed us to capture the data produced during operational activities. With the availability of advanced algorithms, this captured data can be analysed for decision-making in real time.

Thus, Industry 4.0 integrated ‘data’ with manufacturing and Information Technology. To take advantage of data-driven decision-making, the governments of other countries also coined their own industrial initiatives like Industry 4.0. For example, the U.S. calls it Smart Manufacturing, China calls it Made in China 2025, and India refers it to as Make in India or Digital India.

Author says that the Industry Revolution 4.0 can help a lot in MSME’s development.

How relevant are MSME’s for India :- Micro, Small and Medium Enterprises (MSMEs) are expected to become the backbone of India as the economy grows larger.

  1. 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.
  2. 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.
  3. MSMEs are also ancillaries to larger enterprises, leading to a seamless supply chain integration.

    As a result, making MSMEs more efficient will be advantageous for the whole economy.

Why MSME’s are not able to adopt Industry 4.0 :-

  • Lack of Awareness :-MSME’s consider such technologies disruptive and having the potential to demolish their existing system.
  • Lack of Finances
  • Lack of Will to induct new technologies

How Industry Revolution 4.0 can be promoted for MSME :-

  • Government should provide information and training to MSME Sector
  • Finance provision through Public or Private investment
  • MSMEs should develop their own vision of Industry 4.0 technologies that they want to adopt and identify the relevant tools and practices they need for such a tailored vision.

Though adoption of Industry 4.0 technologies by MSMEs requires transcending a labyrinth of impediments, it will make them more competitive as they will be able to offer world class quality products to customers.
Additionally, delivery timings and the flexibility to meet different needs will improve.

Industrial Revolution Evolution
Evolution of Industrial Revolution

This Editorial from Current Affairs can be used in UPSC Preparation

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