Reform MSME sector and revive Indian economy

Micro, Small and Medium enterprises (MSME) are the backbone of the Indian economy. Entrepreneurship development, employment generation and innovation are three key areas in which MSMEs contribution is unparalleled.

The sector contributes about 45% to manufacturing output, more than 40% of exports, over 28% of the GDP while creating employment for about 11.1 crore people, which in terms of volume stands next to agricultural sector.

The heterogeneity of the MSME sector is visible in its size, products and services delivered, access to finance and marketing and technology deployed.

Despite such diversity it faces common set of problems such as physical infrastructural bottlenecks, access to credit, lack of formalization, technology adoption, capacity building, market linkages, risk capital, delayed payments and arbitrary inspections system in some territorial jurisdiction.

These problems are impending the development of a conducive business environment thereby hindering expansion of the sector. To achieve the goal of five trillion-dollar economy we need a thriving entrepreneurial ecosystem backed by a stable policy environment.

Read more at Divya Bharat