Every big business starts out small, but each small business has made a big impact in the last year. From survival to recovery, India’s MSMEs have put up a magnificent display of resilience and strength.
“On the occasion of International MSME Day, I would like to congratulate and compliment all MSMEs and entrepreneurs for their excellent contribution to the economy of the country which has created huge employment opportunities for millions of people. We all truly deserve to celebrate this day with new vigour and commitment towards making the MSME sector grow manifold and become globally competitive.
Resilient recovery is the focus of this year’s events. We honour the entrepreneurs in societies everywhere as they face the triple threat of COVID-19, conflict and climate,” says R Narayan, Founder & CEO, Power2SME & President, FICCI-CMSME.
R Narayan, Founder and CEO, Power2SME
While policymakers and industry leaders alike brainstorm on how to eliminate barriers faced by MSMEs, and improve their business environment, it is the MSMEs who are laying the blueprint on innovation, recalibration and sustainability in their business models and operations. When the MSMEs of today become the multinationals of tomorrow, the Earth will no longer suffocate under the burden of industry, but will be given a new lease of life, because of it.
With 63 million units producing more than 8,000 products, and a share of around 30% in the GDP, the country is looking at the sector which is the second largest employer in the country after agriculture, to propel the economy forward to reaching its $5 trillion target. In doing so, it is facilitating the sector with multiple reforms to ease regulatory compliances and access to credit. Some of the recent developments undertaken by the government in this direction are:
Introduction of Udyam Registration to ease formalisation of the MSME sector and make available to them the various schemes and incentives of the Government.
Extension of the Emergency Credit Line Guarantee Scheme or ECLGS till March 2023.
Inclusion of MSMEs in defence manufacturing
Development of a robust skilling eco-system to meet the demands of skilled workforce in the various emerging and traditional sectors in different segments of enterprises
Introduction of portals like MSME Samadhaan and Champions portal for redressal of MSME grievances
While the MSMEs are stepping away from the shadows of the pandemic, there are a few steps that the industry looks forward to for speedy revival of the sector:
Safeguarding measures for MSMEs from rising prices of raw materials
Boost of credit flow to young startups that have emerged in the last few years by RBI
Prioritising clearance of payments owed to MSMEs at least by government bodies
Allowing fintechs on platforms like TReDS to ensure speedy adoption of digitisation by MSMEs.
It is estimated that 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world. In such times, it is critical that India continues to empower the great backbone of its economy so that it can truly unleash its untapped potential through sustainable innovation that generates opportunities for the country’s masses.
Company website: www.power2sme.com.