DoT Calls for Proposals to Survey MSMEs' Readiness for Industry 4.0

By Doraj Mandal --
Thursday, 06 Jun, 2024

The Department of Telecommunications (DoT) is seeking proposals for an Industry 4.0 baseline survey among MSMEs (micro, small, and medium enterprises to explore digital transformation through 5G technologies and its sectoral impact.

Industry 4.0 involves integrating advanced digital technologies into manufacturing and industrial processes. The Ministry of Communications stated that this survey will evaluate MSMEs' readiness, identify improvement areas, and inform strategic and investment decisions. Proposals must be submitted by startups and other organizations by June 11, 2024.

Proposal requirements:

Outline the methodology and approach for designing and conducting the survey, define objectives, develop a comprehensive questionnaire, and identify sectors to be surveyed.
Collect primary data via online and offline surveys, interviews, or other methods across at least 10 sectors, including leather goods, printing and packaging, furniture, chemical processing, and metalworking.
Analyze the data to identify trends and challenges MSMEs face in adopting Industry 4.0 technologies, such as high costs, skill shortages, inadequate infrastructure, cybersecurity issues, resistance to change, and regulatory hurdles.
Assess how IoT (Internet of Things) can benefit MSMEs in areas like monitoring, maintenance, production efficiency, and inventory management.
Provide short-term, mid-term, and long-term recommendations for adopting Industry 4.0 technologies.
Document policy reforms needed to support MSMEs in this adoption.
Include a detailed project timeline with milestones and deliverables.
Present a detailed cost breakdown, covering personnel, equipment, travel, and other expenses.

Challenges faced by MSMEs in adopting Industry 4.0 were also discussed in TRAI’s consultation paper on Digital Transformation through the 5G Ecosystem. Vodafone Idea (Vi) identified several issues:

Standardization, interoperability, and data security: Lack of standardized protocols hinders seamless integration of Industry 4.0 solutions. Vi suggested the government develop digital infrastructure and introduce regulations for data protection and privacy compliance.

Investment challenges: Financial constraints often limit MSMEs from investing in Industry 4.0 technologies. Vi recommended financial incentives, tax breaks, or subsidies to ease this burden.

Skill gaps: A shortage of skilled labor in these technologies necessitates targeted skill development programs for MSMEs.

Both Vi and Reliance Jio cited Germany's enhanced Competence Centres as a model to help MSMEs transition to digital, suggesting similar centers could train MSMEs in adopting Industry 4.0 technologies.

DoT Calls for Proposals to Survey MSMEs' Readiness for Industry 4.0. The Department of Telecommunications (DoT) is seeking proposals for an Industry 4.0 baseline survey among MSMEs (micro, small, and medium enterprises to explore digital transformation through 5G technologies and its sectoral impact.

Industry 4.0 involves integrating advanced digital technologies into manufacturing and industrial processes. The Ministry of Communications stated that this survey will evaluate MSMEs' readiness, identify improvement areas, and inform strategic and investment decisions. Proposals must be submitted by startups and other organizations by June 11, 2024.

Proposal requirements:

<ul>
 <li>Outline the methodology and approach for designing and conducting the survey, define objectives, develop a comprehensive questionnaire, and identify sectors to be surveyed.</li>
 <li>Collect primary data via online and offline surveys, interviews, or other methods across at least 10 sectors, including leather goods, printing and packaging, furniture, chemical processing, and metalworking.</li>
 <li>Analyze the data to identify trends and challenges MSMEs face in adopting Industry 4.0 technologies, such as high costs, skill shortages, inadequate infrastructure, cybersecurity issues, resistance to change, and regulatory hurdles.</li>
 <li>Assess how IoT (Internet of Things) can benefit MSMEs in areas like monitoring, maintenance, production efficiency, and inventory management.</li>
 <li>Provide short-term, mid-term, and long-term recommendations for adopting Industry 4.0 technologies.</li>
 <li>Document policy reforms needed to support MSMEs in this adoption.</li>
 <li>Include a detailed project timeline with milestones and deliverables.</li>
 <li>Present a detailed cost breakdown, covering personnel, equipment, travel, and other expenses.</li>
</ul>

Challenges faced by MSMEs in adopting Industry 4.0 were also discussed in TRAI’s consultation paper on Digital Transformation through the 5G Ecosystem. Vodafone Idea (Vi) identified several issues:

Standardization, interoperability, and data security: Lack of standardized protocols hinders seamless integration of Industry 4.0 solutions. Vi suggested the government develop digital infrastructure and introduce regulations for data protection and privacy compliance.

Investment challenges: Financial constraints often limit MSMEs from investing in Industry 4.0 technologies. Vi recommended financial incentives, tax breaks, or subsidies to ease this burden.

Skill gaps: A shortage of skilled labor in these technologies necessitates targeted skill development programs for MSMEs.

Both Vi and Reliance Jio cited Germany's enhanced Competence Centres as a model to help MSMEs transition to digital, suggesting similar centers could train MSMEs in adopting Industry 4.0 technologies.