Mumbai: Micro, Small and Medium Enterprises (MSMEs) are the backbone of India’s manufacturing and services sector, and are presently at an important crossroads. Faster delivery, precision and scale, and low-cost automation (LCA) are highly important for MSMEs to overcome the challenges of high input costs and low profit margins.

Industrial automation needs huge investments but LCA focuses on incremental upgrades like pneumatic arms, sensor-based quality checks, conveyor-based material handling, etc. These can be integrated into existing setups with minimal disruption. Such small but strategic enhancements can help improve productivity, and quality, minimise human error, and help undertake repetitive or hazardous tasks consistently.

With India tipped to be a $5 trillion economy, MSMEs need to compete not only on the domestic front but with global supply chains. Automation isn’t a luxury anymore, it is the need of the hour and budget shouldn’t be a barrier.

Realising this, the Government of India has been extending support through some crucial policy initiatives. Under the MSME Champions Scheme, financial assistance is provided for technology adoption. The Credit Linked Capital Subsidy Scheme (CLCSS) offers capital support for upgrading technology. The Technology and Quality Upgradation Support (TEQUP) scheme promotes energy-efficient and cleaner production technologies, many of which involve low-cost automation tools.

Implementation of automation coupled with trained manpower will give great dividends for corporate entities. Companies prefer hiring engineers with some hands-on experience in working with machines or those who have been trained in reputed institutions and are ready to be absorbed.

Adoption of frugal automation by MSMEs will help them achieve more with less as automation doesn’t replace jobs but augment human effort, reduce fatigue, and help them stay relevant in the market. For India’s large number of MSMEs, low-cost automation isn’t just a solution; it is a survival strategy.