- Financial Express
‘Green’ lighting MSME recovery
Small businesses are the backb one of India’s economy: it has more than 63 million micro, small, and medium enterprises (MSMEs), the second-largest number in the world after China. MSMEs employ 110 million workers, generate more than a quarter of the GDP, and contribute over 40% of exports. Micro enterprises account for more than 99% of all MSMEs in India, and more than half of the country’s MSMEs are rural. Unfortunately, this sector has been hit hard by the Covid-19 pandemic. The silver-lining is that the recovery process is an opportunity to build back better. Focusing on MSMEs’ transition to cheaper and cleaner energy could increase their competitiveness and insulate them from fluctuations in fossil fuel prices. It could also help India achieve its climate goals, address socioeconomic inequities, and improve public health outcomes by reducing pollution. India has made ambitious commitments to install 500 GW of renewable energy capacity and to ensure that 50% of its energy sources will be renewable by 2030.