New Delhi, May 2 (HS): NITI Aayog has released a report titled ‘Enhancing MSMEs Competitiveness in India’, developed in collaboration with the Institute for Competitiveness (IFC). This report outlines strategies to unlock the potential of India’s Micro, Small and Medium Enterprises (MSMEs) by focusing on reforms in financing, skills, innovation, and market access. It identifies challenges faced by MSMEs, using data from the Periodic Labour Force Survey (PLFS), and recommends ways to integrate them into global value chains. The study emphasizes textiles, chemicals, automotive, and food processing sectors, noting sector-specific challenges and opportunities.
While MSME access to formal credit has improved—rising from 14% to 20% for micro and small enterprises from 2020 to 2024—an estimated ₹80 lakh crore remains unmet. The report stresses the need for a revamped Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Additionally, it highlights skill shortages, low R&D investment, barriers to technology adoption, and the need for enhanced marketing capabilities as key areas for improvement to boost competitiveness.
The report identifies that despite numerous support policies for MSMEs and recent budget enhancements, effectiveness remains low due to limited awareness. To improve policy impact, it suggests stronger design and implementation at the state level, alongside consistent monitoring, better data integration, and improved engagement with stakeholders during policy development. It argues that India’s MSMEs have the potential to significantly contribute to sustainable economic growth through targeted interventions, robust institutional collaborations, and enhanced global competitiveness. Recommendations include providing advanced support for MSMEs through digital marketing training, engaging partnerships with logistics providers, and developing platforms for direct market access, particularly in growth-oriented regions like northeastern and eastern India. Furthermore, the report advocates for a strong, flexible, and cluster-based policy framework at the state level to promote innovation, boost competitiveness, and empower MSMEs to facilitate inclusive economic transformation.
Hindusthan Samachar / Jun Sarkar
