India's MSMEs: Unleashing Innovations And Growth
Over the past four to five years, the micro, small and medium enterprises (MSME) sector in India has undergone a significant transformation, defying the conventional notion of limited innovation within its ranks. Industry leaders discuss the changing landscape in the MSME segment.
According to the Ministry of MSMEs, the sector alone employs around 110 people across the country. It accounts for over 30 per cent of the gross domestic product (GDP) and over 50 per cent of exports. It is expected to contribute at least 60 per cent to India's target of exporting goods and services worth USD 2 billion by 2030.
However, the sector has several hurdles to overcome. In spite of many challenges such as limited access to funding and capital, poor infrastructure, and competition from big corporations, the industry has crucial things to offer in terms of employment and GDP contribution.
Speaking at BW Emerging Business Summit & Awards 2023, Amit Saluja, the Centre Head of the Gandhinagar Centre of Excellence at Nasscom highlighted the pivotal role of MSMEs as the backbone of India's economy. Contrary to the notion of limited innovation, Saluja noted that the sector has been undergoing notable changes recently, particularly in its manufacturing processes.
Nikita Bose, an MSME Programme Expert at the National Project Management Unit (PMU) under the Ministry of MSME also emphasised the transformative power of innovation and change. Bose pointed out that after the success of innovations like UPI, the sector underwent a paradigm shift. "Instead of perceiving change as a threat, Indian MSMEs are now recognising the opportunities it presents and are harnessing them for growth," Bose added.
In September 2014, the 'Make in India' initiative was launched globally as a part of India's renewed focus on manufacturing with an objective to promote the country as the most preferred global manufacturing destination.
On this initiative, Saluja said that the Make in India initiative has played a pivotal role in reshaping the landscape of the MSME sector. "Make in India has not only driven innovation and solutions but has also expanded manufacturers' production capacities. Collaborations between MSMEs and larger corporate entities have led to reduced dependence on raw materials," Saluja explained.
Meanwhile, Bose underscored the significance of Make in India in bolstering the MSME segment. She described the initiative as a catalyst that propelled the sector's progress by providing access to markets, technology and capacity building. "Make in India has become a cornerstone program, especially for MSMEs. Its comprehensive approach has empowered these enterprises to flourish and contribute to India's economic advancement," Bose emphasised.
