The role of MSME

In pushing for greater inclusivity, India recognises the social and economic imperative of broad-based growth. For a country as large and diverse as ours, the fruits of development must not just trickle down to those at the bottom of the pyramid but opportunities must be created for everyone. In this context, the MSME sector plays a crucial role by fostering entrepreneurship and contributing significantly to employment, output and exports.

There are over 6.3 crore MSME’s in India. They collectively contribute approximately 33% to GDP, and employ about 120 million people. MSMEs operate at a scale next only to the agriculture sector and are vital in achieving inclusive growth and furthering India’s manufacturing ambitions.

GoI has looked to strengthen MSME’s through measures encompassing a broad spectrum from credit support to formalization, technology up gradation, skilling and market assistance. Schemes like the Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Entrepreneurship Skill Development Programme (ESDP) and Raising and Accelerating MSME performance (RAMP) are some of the key initiatives in this regard.

In an era of globalization, MSME’s cater to domestic and international markets. Therefore, their ability to adapt to the changing landscape is crucial. India’s Foreign Trade Policy (FTP) recognizes this and focuses on simplifying export procedures, reducing clearance time and lowering compliance costs, thus enhancing competitiveness. Moreover, there is a dedicated chapter on ecommerce for the first time, underscoring the role of such platforms in India, achieving the ambitious target of $2 trillion in exports by 2023.

Indeed, for today’s environment-conscious consumers, ranking highly on sustainability metrics in as important as cost and quality considerations. The ‘Zero Defect, Zero Effect’ (ZED) scheme aims to nurture the transformation of MSME’s into national and international champions by improving their quality, boosting production, increasing profits and protecting the environment.

As India moves ahead with confidence and aspires to be a developed nation by 2047, MSME’s will have to play a significant role in achieving broad-based growth. MSME’s must continue to be nurtured so that they flourish and contribute meaningfully to India’s rise as an economic powerhouse.