MSMEs aren’t one-size-fits-all

The central government is pushing for policy reforms specific to the unique problems and demands of various segments of micro, small and medium enterprises (MSMEs) said the MSME ministry.

“MSMEs is a nomenclature. It is not a sector. We need a differentiated approach. While we have 60 million digitally registered MSMEs, only 800,000 of these are small, and just about 70,000 are medium. There are varying levels of capability and digital maturity, exposure to debt, and technology adoption.

The government can provide a push factor with a universal digitalisation programme. The government is working on a digitalisation road map for SMEs, with the MSME ministry and NITI Aayog developing the plan.

Strategically, the new classification scheme gives the small sector a big headroom deliberately to provide the necessary stimulus and growth space for exports, technology, and advancing towards high-tech. In parallel, a different approach — more rooted in industry and academia and less in the government — is required for the medium sector, he added.

The government’s effort is to create upward mobility in technology, skilling, and business growth so that more micro enterprises can become small, transition into medium, and then grow into large companies.

According to officials, the Centre has been working on a plan to provide customised schemes for medium enterprises to shed their inhibitions about becoming large companies.

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