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With the onset of the globalization process, the Indian Micro Small and Medium Enterprises (MSMEs) are lagging behind the rival firms. The rival firms originate from the neighboring countries in terms of export competitiveness. The main reason attributed behind this is lack of use of updated technology and other notable reasons. Hence, this calls for urgent action. We analyze the case of Indian Coir Industry, a traditional export oriented industry facing tough competition from the other synthetic products produced by its rivals. The export value has not witnessed a huge increase which is evident from the export trend from the last 5 years. Technology can enhance competitiveness. Some theoretical insights on technology and export competitiveness, and technology transfer channels have been elaborated. Absence of appropriate technology will reduce the potential of MSMEs, lower the demand for the product (lower sales), switching to superior quality (from rivals) and lower profit margin (sometimes loses). There should be a strong focus on implementing the new age technology, through better awareness, adopting of best practices, developing (indigenous technology) as well as technological collaboration with global partners. The Government of India has been launching several MSME schemes related to technology from time to time. However, more needs to be done. More efforts in the form of higher investment in advanced technology and research and development, higher usage of digital and technology enabled platform, transfer of technology, more investment in human resources, improved access to finance, reduced infrastructural gaps, lesser stringent business regulations can help in improving the competitiveness of the MSMEs.
Sonia Mukherjee (Tue,) studied this question.