How Can MSMEs Play A Significant Role To Achieve The Vision Of Atma Nirbhar Bharat?
Coronavirus pandemic and the nationwide lockdown has dealt a grievous blow to the country's economy. In a bid to restore it, PM Narendra Modi announced an incentive package of ₹20 lakh crore as part of the Atma Nirbhar Bharat Abhiyan. This approach to growth had indeed turned towards internal strength with the slogan, vocal for local to make it global.
A self-reliant India or the Atma Nirbhar Bharat will stand on five major foundations: ‘economy’, which brings in the quantum rise and not incremental change; ‘infrastructure’; ‘system’, based on 21st-century technology-driven arrangements; ‘dynamic demography’, which is the source of energy for a self-reliant India; and ‘demand’, wherein the strength of our supply chain should be utilised to full capacity. Micro, Small and Medium Enterprise (MSME) sector in India can play a crucial role by standing, robust on all the five pillars, thus achieving the vision of self-reliant India.
Significance of MSMEs
The MSME sector is the most dynamic industrial sector contributing significantly to the GDP and export while employing around 40 per cent of the workforce in India. The Prime Minister has also underlined that the MSME sector will act as the bedrock for economic regrowth. Therefore, to get the MSME sector back on its track, the Prime Minister announced the MSME sector to be within the purview of the Atma-Nirbhar Bharat Abhiyan (ANBA).
MSMEs- the way towards growth driven India
According to the latest report by Nomura Research Institute (NRI) Consulting & Solutions, India MSMEs can play a vital role in achieving this vision, however, a lot more needs to be done for MSMEs to become a growth accelerator for India. Three critical aspects for the success of MSMEs are Availability of Skilled Labour in MSME clusters, Financial Stability, and Market Competitiveness of their products to both achieve import substitution as well as exports.
360-degree vision with emerging sectors
MSMEs will benefit from an array of measures which include easy access to loans and de-risking the sector with a credit guarantee to help banks draw comfort. The emphasis on technology-driven systems in administrative reforms, health and education and privatisation of public sector units except in strategic sectors will bring the required efficiencies, thus releasing resources over and above what has been allocated. Opening up of space and atomic energy for the private sector also entails a positive spillover effect of technology.
Customers and changing demands
The Indian MSMEs have traditionally catered to the domestic market either through direct selling to the consumers (B2C) or are a part of the value chain conducted by enormous organised private players (B2B). Factors like increasing competition and evolving consumption have led to the rising topicality of integrating customers’ voice in product design for MSMEs to stay pertinent. Therefore, it becomes imperative for the MSMEs to design, manufacture and sell products which the customers need. They need to be connected to a demand-led environment, where the business strategy and processes are harmonized to the changing market dynamics through a consumer-oriented approach.
Conclusion
If, however, the steps are taken in true spirits, the MSMEs would be tremendously benefited and would turn quite progressive in contributing to the economy more brightly. But much will depend on the seriousness of implementation and monitoring by all the respective agencies, including coordination from state machinery.
