Is Automation in India Being Driven Only by Startups?
The Indian economy has been witnessing a significant surge in automation, driven largely by the startup ecosystem. From e-commerce giants like Flipkart and Amazon to fintech companies like Paytm and PhonePe, automation has become a buzzword in the Indian startup landscape. However, a closer look reveals that automation is not limited to private players alone. The Indian government has been actively promoting automation through various schemes and initiatives, aimed at transforming the country’s industrial landscape and enhancing its global competitiveness.
Government Schemes: The Catalyst for Automation
The Digital India initiative, launched in 2015, is one such scheme that has been instrumental in driving automation in various sectors. The program aims to ensure that government services are accessible to citizens electronically and make all government services digitally accessible by 2022. To achieve this, the government has been promoting the adoption of digital technologies, such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT).
Another significant scheme is the Production Linked Incentive (PLI) program, launched in 2020. The program offers incentives to companies that invest in new manufacturing facilities and adopt cutting-edge technologies, such as automation and robotics. The scheme has been designed to promote domestic production, improve efficiency, and reduce dependence on imports.
MSMEs at the Forefront of Automation
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of India’s economy, accounting for over 30% of the country’s GDP. However, these enterprises have traditionally been plagued by inefficiencies and manual processes, which have hindered their growth and competitiveness. Automation, therefore, is seen as a game-changer for MSMEs, enabling them to improve productivity, reduce costs, and increase competitiveness.
The government has been actively promoting automation in MSMEs through various initiatives, such as the MSME Automation Scheme, which offers financial assistance to MSMEs that invest in automation and modernization. The scheme aims to help MSMEs adopt new technologies, enhance their competitiveness, and increase their exports.
Logistics and Electronics: The Next Frontier
The logistics and electronics sectors are also witnessing significant automation, driven by the government’s initiatives and the growth of e-commerce. The government has been promoting the adoption of technology in logistics, such as automation and robotics, to improve efficiency and reduce costs.
In the electronics sector, automation is being driven by the growth of the manufacturing sector, which has been incentivized by the government’s schemes, such as the PLI program. The sector has seen significant investments in automation, with companies like Foxconn and Samsung setting up manufacturing facilities in India.
The Role of Policy and Technology
The success of automation in India can be attributed to the alignment of policy and technology. The government’s initiatives have created an enabling environment for companies to adopt automation, while the availability of affordable technology has made it possible for companies to implement automation solutions.
The Indian government’s emphasis on digital transformation has also created a significant demand for automation talent, with companies competing for skilled professionals who can implement and maintain automation solutions.
Conclusion
While startups have been at the forefront of automation in India, the government’s schemes and initiatives have been instrumental in driving automation across various sectors, including MSMEs, logistics, and electronics. The alignment of policy and technology has created an ecosystem that is conducive to automation, with companies and government agencies working together to achieve the goal of global competitiveness.
As automation continues to transform the Indian economy, it is essential to ensure that the benefits of automation are shared equitably and that the workforce is prepared for the changes that automation brings. With the government’s initiatives and the growth of the startup ecosystem, automation is likely to continue to drive growth and transformation in India, making it a significant player in the global economy.
Source: https://www.growthjockey.com/blogs/effect-of-automation-in-india-all-you-need-to-know
