MSMEs’ reverse migration issue to be addressed by cluster mapping, cluster-based skill development: Study

25-40 lakh estimated number of workers had moved back to their hometowns from Gujarat between April and June. (Photo source: IE)

Skill, Labour, Talent for MSMEs: In order to address the challenge of reverse migration of migrant workers for MSMEs, which emerged during the Covid pandemic, cluster mapping, and a major cluster-based skill development approach is required, said a study by Grant Thornton Bharat and SIDBI on Monday that carried out a rapid profile of migrant labour in 11 states to suggest solutions. The report highlighted digitisation of financial and non-financial services, setting up of digital platforms to provide access to e-business services for existing enterprises, involvement of technical institutions as solution centres among other recommendations.

“Enhanced competitiveness, progressive strengthening and rapid transformation of the ecosystem are expected to help multiply the contribution of the MSME sector. For India to emerge as a global value chain leader, strengthening of the enterprise value chain is essential,” Sivasubramanian Ramann, Chairman and managing director of SIDBI said in a statement.

The UK Sinha Committee on MSMEs had recommended a more focused engagement of SIDBI with state governments for which it had partnered with Grant Thornton Bharat as Project Management Unit (PMU). The report noted that PMU through its range of support and facilitation services is working with the respective states to strengthen their enterprise ecosystem. “These states account for 56 per cent of the total MSMEs in the country. The PMU units set up by Grant Thornton Bharat under the aegis of SIDBI are working with respective state governments on the convergence of various central government schemes,” it said. The report cited skilling, reskilling, and upskilling as important aspects to provide jobs and enterprise opportunities to migrant labour.

“The report aims at bridging the gaps between MSMEs and central as well as state governments, to gain an in-depth understanding of the ground-level challenges faced by MSMEs and assist them in creating an ideal ecosystem. The rapid profiling of 11 states is carried out to facilitate and assist policymakers and other stakeholders to plan the action to help these migrant workers for setting up their own enterprises/livelihood options,” said Kunal Sood, Partner, Grant Thornton Bharat.

25-40 lakh estimated number of workers had moved back to their hometowns from Gujarat between April and June, the report noted. “Likewise, a report by the Delhi Transport Department suggested that over eight lakh migrant workers left the national capital in the first four weeks of the lockdown imposed in the second wave of the pandemic. In Rajasthan, more than 58 lakh migrant workers have been affected.”