In an ever-changing and dynamic world, the advent and adoption of Information and Communication Technologies (ICTs) across the globe has permanently altered the rules of the game and expectations of the new digital and inter-connected economies. Traditional notions of trans-boundary trade have in the past two decades changed dramatically to acknowledge and embrace, at times reluctantly, the increasing number of financial transactions and trade-related activities that take place purely via the Internet and technologically assisted tools.
The role of ICTs in advancing the growth of national economies through enhanced efficiency and productivity, and expanded market reach is both undisputed and irreversible. It is within this vein that adequate and strategic attention has to be placed so that these new opportunities provided by ICTs are not purely limited and accessible only by the larger corporations within national economies. As numerous reports have indicated, small and medium enterprises (SMEs) constitute almost 95 percent of enterprises within the region and directly serve as both the backbone and driver of national economies.
India is currently at a critical juncture in terms of ICT adoption, where it both hosts the fastest growing ICT markets and ICT industries in the world and is also home to low adoption of ICTs and low Internet penetration in many regions. The slow adoption has been due to numerous major constraints that range from lack of skilled technical capacities to issues related to inadequate connectivity and infrastructure. In addition, a weak understanding of the expectations and demands of the new digital economies has also placed many SMEs in an unenviable position of being unable to participate in the new digital knowledge economy.
The appropriate adoption and utilization of ICTs within business processes and operations of SMEs, at the minimum, will significantly strengthen national economy and provide new opportunities for enhanced efficiency and integration and flow of regional trade and commerce. The risk of exclusion of economies from the national and regional economies would be daunting, should appropriate action to encourage the adoption of ICTs not be taken by governments within the region. As such, governments within the region have a critical role to ensure that adequate policies and initiatives are in place and enabling environments are created to encourage the adoption of ICTs within business processes of SMEs.
The future and shape of the economic landscape is changing dramatically and it is imperative that all efforts undertaken for a more equitable and sustainable approach towards addressing these developments do not impede ICT adoption by SMEs in India.