New Delhi: India’s road to a new path of development can be by fixing and facing the challenges faced by the MSMEs, which can be done by simplifying the rules, rationalising and making things easier for this sector, says Brazil, Russia, India, China and South Africa Chamber of Commerce & Industry (BRICS CCI) Chairman Vishwas Tripathi.
Mr Tripathi said a pandemic in 2020 should be an eye-opener for India as it has disrupted the world, shaken the economies of the most powerful countries and has caused the worst recession since the 1930s.
‘This should make us realize the importance of realigning our economic policies and focusing on sectors that can reform and lead India into a new path of development,’ said Mr Tripathi, who is also Chairman of UNI Board of Directors.
The novel idea behind celebrating Ministry of Micro, Small & Medium Enterprises (MSME) day was to encourage the formalization of a segment of the economy that accounts for over 90 per cent of all firms globally, around 70 per cent of total employment and contribute half of GDP, opined Mr Tripathi.
He added that with the given context of COVID-19 and our Indian economy hitting a new low, this day is very significant as there are a lot of small businesses battling fiscal crisis.
‘If we look at the Indian example, MSMEs are one of the biggest job creators in the country. There are 68 lakh registered MSMEs, as per numbers available on the Make in India website. Of these, there are 6,032,100 micro-units, 28,611 medium units and 728,516 small units.
‘MSMEs are also revenue creators for our country from exports to various countries including BRICS and neighbouring/ friendly countries,’ he maintained.
Mr Tripathi pointed out that the recent government have launched a lot of initiatives like ‘Make in India’ and schemes to support this sector and most likely sectors like Telecommunications, Healthcare and Electronics will see an increased MSME participation in India.
Among states, Maharashtra has the highest number of registered MSMEs with 1,104,189 units, followed by Bihar (829,694), Tamil Nadu (791,288), Uttar Pradesh (706,342) and Madhya Pradesh (645,077), he elaborated.
However, Mr Tripathi said, ‘it should also be noted that MSMEs in India always have had to grapple with lots of difficulties and discomforts even when they contribute half of our GDP.’
He said 87 per cent of firms in India representing 21 per cent of total turnover is purely informal because of reasons like heavy paperwork, complex laws and rules.
A day before, the Micro, Small and Medium-sized Enterprises Day (MSME) Day was celebrated across the world on June 27. On the occasion, MSME Minister Nitin Gadkari has said boosting exports of small and rural industries, creating a sustainable economy, with less pollution, decongestion of cities and building industrial hubs along 22 green expressways were priorities of the government.
Prime Minister Narendra Modi has officially launched on June 1 the Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength (CHAMPIONS) platform for MSMEs which is a grievance redressal platform where they can register issues faced by them in relation to finance, raw materials, labour, regulatory permissions among other things.
The idea was to help smaller units grow by solving their grievances, encouraging, supporting, helping and handholding.