MSMEs: The Vision Drivers of "Make in India"
On the pillars of the Indian Government's new global order which would work like a catalyst towards the commendable approach of the vision of "Make in India” driven economy while being propelled, progressed & prompted by the undeniable potential of MSMEs.
The latest forecast by the IMF, India's GDP growth is booming at 6.1% while dominating China's rise. The dream of India's becoming a $ 5 trillion appears to have become a reality with the collaboration of both large and small enterprises. ?
According to the Centre for Economics, India is on a streak to achieve a $10 trillion feat by 2035 and will become the third-largest economy. Germany and Japan will fall behind India's growth in the manufacturing sector through regional sourcing, upskilling, service support, and Indian talent.
The implementation of government schemes and policy reforms like Atma Nirbhar Bharat or Make in India and the Performance Linked Incentive (PLI) scheme would revamp India into a "new global manufacturing hub." In addition, the push by the government in the defense, aviation, and finance sector has opened new doors to the more significant participation of private players and small enterprises. For example, 苹果 and 富士康 joined hands to build a manufacturing unit in India to produce locally manufactured devices.?
Meanwhile, with the country's biggest $34 billion purchase in the aviation industry and its aspiration to become the advanced manufacturing junction, there's never been a better opportunity to showcase the skills of Indian MSMEs. Boeing is set to supply India's largest airline, Air India Limited , with 220 aircraft. The deal includes 250 Airbus passenger jets in addition to 190 737 Max aircraft, 20 Boeing 787, and 10 777Xs.
Role of MSMEs in the Indian Economy
Micro, Small, and Medium Enterprises (MSMEs) in India have become essential contributors to economic growth. Their role in generating employment, industrializing rural areas, and reducing regional imbalances is paramount.
As per the National Sample Survey (NSS) 73rd round, conducted by the Ministry of Statistics & Programme Implementation, MSMEs in India are engaged in different economic activities, excluding those registered under specific acts.
An Employment Provider MSMEs in India have been instrumental in generating large-scale employment opportunities at a lower capital cost than large industries. They have helped in reducing unemployment and underemployment in the country.
According to the NSS survey 2015-16, 633.88 lakh unincorporated non-agricultural MSMEs in the country engaged in various economic activities:
●?????Industrialization of Rural and Backward Areas MSMEs have played a significant role in industrializing rural and backward areas, reducing regional imbalances, and ensuring a more equitable distribution of national income and wealth.
●?????Creating economic opportunities in remote areas, leading to their overall development. The NSS survey showed that MSMEs were engaged in manufacturing, trade, and other services, excluding specific categories.
●?????196.65 lakh MSMEs engaged in manufacturing, 0.03 lakh in non-captive electricity generation and transmission, 230.35 lakh in trade, and 206.85 lakh in other services.
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●?????The “Vocal for Local” program correspondingly ensured the strengthening of industry sectors in the MSME sector, particularly with the sole objective of producing goods and services within the country, making India self-reliant.?
●?????The NSS survey highlighted the scale of MSMEs' economic activities, excluding those registered under specific acts. It is essential to recognize the role of MSMEs in promoting inclusive economic growth and provide them with the necessary support to sustain their growth in the future.
5-Point Workflow to Improve Performance of MSMEs
The 5-step workflow for enhancing performance is listed below:?
Final Thoughts?
Despite the financial hurdles, infrastructure limitations, and regulatory compliances, Indian MSMEs can thrive with their agility, innovation, and adaptability. ViTWO opens up infinite avenues for MSMEs looking to make a name for themselves in the Global Economic Space.
MSMEs can get in touch with our Virtual CFO service and take their businesses to the next level.
ViTWO helps MSMEs to capitalize on the current momentum and put their best foot forward to seize this golden opportunity. Let's make India the next biggest manufacturing hub in the world.?
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Journalist and Writer
1 年MSMEs indeed have the potential to revolutionize the employment market and thus the economy of the country... But the question is, for talents, especially those homegrown ones, who have vision, but in most cases do not have funds; trying to get funds as 'start-ups' make them fall into a different category altogether and thus they get treated in an entirely different way. Therefore, when one thinks in terms of MSMEs and those companies driving the economy of the company, I suggest, one should think about creating a dedicated pool of funds, especially targeted towards the talents, who want to enter the MSME domain, not as an employee, but as an employer/entrepreneur.