The recent CII-KPMG report, ‘The new wave Indian MSME – An action agenda for growth’ gives insight into the opportunities for the MSME sector in India to grow, and talks about an enabling framework to make this growth story work.
According to the report, India needs to work towards developing an eco-system that enables and continuously supports businesses that are gearing-up to deliver the right product, the right quality, the right solution and the right service at a competitive price both in domestic and international markets. The MSME sector can act as a catalyst that can bring about this socio-economic transformation of the Indian economy. The opportunity seems to lie in increasing the share of MSME contribution across key public and private industry sectors fulfilling increasing domestic demand, growth in exports, indigenisation and import substitution. This can be made possible with the help of a new wave opportunity framework which considers a ‘performance incentive’ based approach rather than a compliance based system. Further, in order to nurture and develop a strong MSME sector, a holistic approach which takes into consideration a robust infrastructure support mechanism, regulatory reforms to enable ease of doing business, financing and funding options for businesses and skill development, especially for women and special classes, would be needed. The report also provides a snapshot of global initiatives across select countries in the aforementioned areas.
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