Technological Upgradation

in SMEs

Mudassir Hayat Khan

Rahul Kesarwani
III Semester
Objectives of Technological Upgradation
Attaining technological competence and self reliance.
Utilisation of technology for gainful and satisfying
employment.
Identifying obsolescence of technology in use.
Develop technologies which are internationally
competitive.
Recycle waste material and make full utilisation of
byproducts
Issues & Concerns
Inadequate Attention to Rural Technology
Lack of Grass-root Contact
Poor Technology Delivery
Poor Technology Dissemination
Problem of Affordability
Lack of Co-ordination
Issues & Concerns
Poor Financial Condition of NGOs & Lack of
Technology Orientation
Poor Data Base
Lack of Appreciation of Changed Environment
Inadequate Patenting Facility
Lack of Linkage between Large Enterprises &
Unorganised Enterprises
Government Policies
Quality Certification Schemes
Integrated Technology Upgradation and
Management Programme (UPTECH)
Technology Bureau for Small Enterprises
Policy For Development Of Information
Technology
Government Schemes
Technological Development & Modernisation
Fund Scheme
Testing Centers By Industries Associations
Technology Development & Modernisation
Barriers in Technology Adoption
Poor financial situation and low levels of R&D

Poor adaptability to changing trade trends

Desire to avoid risk

Non-availability of technically trained human

resources
Barriers in Technology Adoption
Emphasis on production and not on production costs

Low Level Of Information and Communication

technologies(ICT) adoption

Lack of access to technological information and

consultancy services
Recommendations
Constitute a focal point/apex institution for the
promotion of livelihoods and improvement in
productivity.
Creation of National Council for guidance and
assisting in policy formulation for the Technological
Upgradation.
Mahatma Gandhi Institute for Rural Industrialisation
(Wardha) should be strengthened to make it the Apex
Rural Technology Promotion Centre.
Recommendations
Technological Innovations and Dissemination
Centers (TIDCs) be set up in each State/UT.
District Industries Centers to be the district level
nodal agency for technology dissemination.
Strengthening Polytechnics & ITIs for rural/small
town areas for linking technology with skill.
Countrywide programmes on entrepreneurship and
innovation must be launched as a national movement
by the MSME Development Institutes.
Recommendations
Every engineering university and technical colleges in
the country must be encouraged to interact with SMEs
in the neighbourhood.
There is a strong need for spreading awareness of IPR
amongst the SMEs. Patenting should be encouraged
by offering financial support/subsidies.
There is a need to revise Technology Upgradation
Fund Scheme of the Ministry of Textiles to make it
accessible to handloom & handicrafts sectors.
Recommendations
Credit Linked Capital Subsidy Scheme (CLCSS) for
Technology Up-gradation of Micro & Small
Enterprises should be broad –based.
Mini Tool Room-cum-Testing Centers should be set
up in all MSME Development Institutes by revamping
the existing workshops.
Closer co-operation of large and medium enterprises
with micro and small enterprises is highly desirable.
Conclusion
Implementation of technology for SMEs is not an easy
mission to accomplish. Adoption of technology is
influenced by several dimensions, viz. socio-cultural
factors, political-economic processes and internal
beliefs of the participants towards the technology.
These all can be triumphed over if government also
comes forward with enabling policies and regulations
for development of skills. Government should also
come with more specific programmes to develop
capacity of enterprise support programme in promoting
e-business development services.
References
Entrepreneurship and Small Business Management -
M B SHUKLA
www.exim.indiamart.com
www.saching.com
THANK
YOU !!!!