Last week, we received an email from a top official from the MSME ministry, informing us about the Digital MSME scheme, launched recently on the occasion of the UN Day for MSMEs. Cloud computing for ICT applications is fast emerging as an innovative technology to increase business efficiency, expand reach and push innovation, and it can be a catalyst for a big, positive transformation of the Indian MSME sector. But our small businesses are lagging behind in this area. High costs and security concerns often get in their way of adopting cloud computing. Majority of them are, in fact, still unaware of its benefits. The Digital MSME scheme now offers a solution to both these challenges.

The scheme aims to make MSMEs digital through cloud computing for ICT adoption in their production and business process with a view to improve their competitiveness in national and international markets. Initially four applications—ERP, accounting, manufacturing design and regulatory compliance including GST—will be available. Under the scheme, the cloud computing services will be provided under three categories:  'With Subsidy', 'Without Subsidy' and at 'Market Cost'. While under the first category a maximum subsidy of Rs. 1 lakh per unit will be disbursed over a period of 2 years, under the 'Without Subsidy' category the services will be available at an 'ultra low' cost, and under the third category, the services will be offered at market cost.

The benefits of this scheme are obvious. SMEs usually operate with limited resources and IT personnel, and now they would be able to make the best of high-end software and other related services at low costs. Many SMEs avoid cloud computing due to the security issues it involves, such as data breaches and malware injection, but as the cloud computing component of the Digital MSME scheme will be implemented by some highly reliable agencies—such as, Telecommunications Consultants India Ltd. (TCll) under the Department of Telecommunications, Electronics Corporation of India Ltd. (ECll) under the Department of Atomic Energy, and Software Technology Parks of India (STPI) under the Ministry of Electronics and Information Technology—such risks seem limited.

One of the significant aspects of the Digital MSME scheme is its focus on awareness creation about the benefits of ICT, including cloud computing applications for business promotion. It is a widely known fact that lack of awareness is a big obstacle in the way of ICT adoption by Indian MSMEs and the new scheme seeks to bridge this gap through a range of activities, such as display of hoardings  at MSME-Dls premises, etc. and documentary and short film on benefits of ICT adoption, regular media campaigns through electronic, print media and radio, and preparation and printing of book on ICT and cloud computing having relevance to MSME sector, etc. These proposals sound very positive.

I invite your opinions.