'MSME units are together capable of constituting complete supply chain'
Premium- Swain said for MSMEs to achieve high growth, the two most significant interventions required are related to credit assistance and technology upgrading
There is tremendous potential for Indian engineering MSMEs to be integrated into the global value chain due to their manufacturing cost advantage, said B. B. Swain, secretary, Ministry of MSME.
Addressing the inaugural session of MSME Conclave organized by EEPC India, Swain said for MSMEs to achieve high growth, the two most significant interventions required are related to credit assistance and technology upgrading.
He noted that the ministry has been working closely with other ministries and departments to facilitate the ease of doing business for MSMEs.
"The Atma Nirbhar announcements have focused on easing access to registering as MSMEs, easing their access to credit and providing them the much needed protection as far as global tenders are concerned," Swain said.
MSMEs engaged in manufacturing engineering products constitute about 29% of the 67 lakh enterprises which have registered since 1 July, 2020 on the Udyam registration portal, he informed.
"MSME units are together capable of constituting a complete supply chain and being globally competitive because of their diverse products ranging from intermediate to final products," Swain said.
EEPC India Chairman Mahesh Desai said that MSMEs need to catch up a lot on the technological front as this is crucial to increase India's share in the global value chain.
"Make-in-India initiative has brought ample scope for the Indian MSMEs to work with the large scale global manufacturing firms and get access to their upgraded technology and efficient marketing techniques. Following the onset of the pandemic, large corporations in the developed world have been looking at India as an alternative destination for manufacturing," Desai said.
He noted the crucial role of MSMEs in the economy saying that the sector contributes around 30% to India's GDP and has 50% share in the country's exports.
"The significance of the MSME sector in India has long been recognized and its potential has also been identified. In the National Manufacturing Policy, manufacturing output has been targeted to increase to 25% of GDP," he stated.
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