By Vaibhav Somani, Director, Gravolite
New Delhi, January 17, 2022: More than 40% of India’s work force is engaged by the MSME sector. The global epidemic ushered in a period of economic stagnation for the country and the MSME sector had to sail through rough waters.Prime Minister Narendra Modi announced several efforts to ensure the sector’s resurrection, including Rs 20 lakh crore incentive packages as part of the Atmanirbhar Bharat scheme.This was done in order to speed up reforms in a variety of areas and bring in the economic revival.
The present landscape of Indian MSME’s
Indian MSMEs have historically followed the traditional path, catering to domestic markets via direct-to-consumer (D2C) or as a component of the value chain of B2B giants.
With the ever-changing demands and tastes of their clients, they are increasingly attempting to cope with industry dynamics by developing innovations and customizations in their services.According to IBEF, the number of registered MSMEs increased to 2.5 million in 2020 as a result of the implementation of the Udyog Aadhaar Memorandum Policy.According to IBEF estimates, there are around 6.3 crore MSMEs in the country now.As per Ministry of Statistics & PI, Share of MSME Gross Value Added (GVA) in India’s GDP for the year 2019-20 was 30% .
MSME’s helping the Aatmanirbhar Bharat objective
A self-sufficient India, according to the PM, will be based on five fundamental values: economy, infrastructure, system, dynamic demography, and demand.By standing on all five pillars and laying a solid foundation, MSMEs and small enterprises in our country can make a significant contribution to creating India aatmanirbhar. Once this is accomplished, the journey to Aatmanirbhar Bharat will be short.
The MSME sector is, without a doubt, the country’s growth engine. It is a dynamic sector that the Indian government has recognized as the underpinning for economic regeneration. On one hand, strengthening the segment will help to increase the country’s economy and job market.
On the other hand, this procedure will aid in the migration of unskilled, skilled, and professional workers to urban areas.
Focusing on innovation and finding methods to generate more with less is the order of the day. Such empowering initiatives have the potential to generate enough job opportunities and growth for the nation’s development, despite the fact that variables such as environmental stability and resource scarcity remain hurdles.
It is important to note that the government must take consistent initiatives to empower MSME’s in order for Aatmanirbhar Bharat to become a reality. Manufacturers should be aided by government initiatives that make the entire process easier. The purchasing guidelines should be in line with industry standards.
To fulfill the specialized needs of distinct segments, an ecosystem with industry-specific clusters should be developed.The government should be liberal in providing local firms with convenient and cost-effective access to raw materials.This would not only serve to promote the MSME sector, but it will also help to fight multinational brands’ dominance.
In addition to the ongoing Aatmanirbhar Bharat campaign, increasing the budget allocation for MSME’s in FY22, together with other supporting and encouraging initiatives, will provide the sector a huge boost.Initiatives like these will assist MSMEs even more and lay the road for the market’s long-term viability and expansion in India.
Corporate Comm India (CCI Newswire)
