New Delhi, Jan. 21 -- India is planning a massive digital upgrade of its micro, small and medium enterprises (MSMEs) as part of a broader push to align domestic manufacturing with global quality, and sustainability standards, in a move aimed at improving export competitiveness and reducing shipment rejections. The government is working on an ambitious plan to help 72 million MSMEs meet stricter compliance and export-market requirements on machine-level data, traceability and energy efficiency by equipping them with essential digital factory tools such as machine monitoring, energy management systems and shop-floor software, three people directly involved in the process said. The first pilot to use sensors, data analytics, automation and artificial intelligence (AI) to capture real-time information on machine performance, energy consumption, downtime and maintenance will be launched in Gujarat under the World Bank-backed Raising and Accelerating MSME Performance (RAMP) scheme for 750 identified manufacturing units, and will be implemented through the National Productivity Council (NPC), the first of the three persons cited earlier said, all of whom spoke on the condition of anonymity. "Limited visibility into shop floor operations remains a key constraint for many MSMEs, often resulting in low productivity, high energy costs, inconsistent quality and unplanned downtime. By digitizing basic shop floor monitoring, the pilot aims to help unit owners identify hidden productivity losses, stabilize output, reduce energy wastage and shift from reactive to planned maintenance," the second person said. As part of the plan, the NPC will empanel startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as technology providers. "These startups will be responsible for installing and supporting a plug-and-play digital twin solution, known as the Shopfloor Insight and Monitoring Kit, on one machine in each participating MSME unit," said the third person. The MSMEs themselves are not empanelled by DPIIT and do not require startup recognition, as they are the end users of the technology, this person clarified. Each technology provider startup will be paid Rs.50,000 per unit, covering hardware, installation, analytics and one year of support, with the engagement expected to run until March 2027, the people cited earlier said. The standardized design and subsidized deployment are intended to lower adoption barriers for MSMEs and create a pathway for scaling digital tools across more machines once the benefits become visible, they said. Queries sent to the ministry of commerce on Monday remained unanswered till press time....