In India, the MSME sector played a very remarkable role in the growth of industrial development and also serving as a source of job opportunity for millions of Indians. We doubtlessly can say that the MSME sector has paid in sustaining an annual growth rate of over 10% for the past few years.
Significance of MSME in the development of India:
- Source of livelihood for millions of livelihood both in rural as well as in urban area.
- Job generating as this sector does not require more technical investment and extra specialization.
- Promotion of industrial development in both rural and urban areas.
- Makes it easy to use traditional and ancient skills.
- Makes the product exportable globally as Ashawl, Manipuri cap, handicraft of Jaipur, etc.
- Makes the resources movable as per the demand of an area.
- As per the data of the MSME ministry, this sector is generating jobs for around 100 millioon through over 46 million units throughout the country.
- MSME sector has a contribution of around 40% in the export and manufacturing sector.
- The Raw material is easily available throughout the country for the manufacturing of products.
- Indian handicraft has a demand globally and also it is affordable to be purchased as there are more than 7000 products to be manufactured in this sector.
Despite all the above role played by this sector still there are some challenges being faced by this sector
- Lack of investment by the govt and private sector.
- Lack of innovation both in machinery and skills.
- Difficulty in accessing these products as the tribals who manufacture the products are less accessible and less famous because of the poor promotion and advertisement.
- Lack of finance available as the credit-linked subsidy scheme also requires the up-gradation in machinery.
- Lack of expertise available in the adaptation of digital technologies, security, and trust.
- Poor credit rating system makes them less famous among market browsers.
Although there are several challenges in this sector but the government in recent times has done in reducing the barriers in front of this sector as:
- The Government has increased the budgetary support for this sector.
- Regular dialogues by the government and the concerned stakeholders so that the challenges may be dealt with.
- Paring of states with each other to promote the local products and make them accessible for everyone by providing them popularity statewide.
- Credit linked capital subsidy scheme.
- MSME ministry has introduced a new policy package for stepping up credit to small and medium enterprises.
- Cluster development programs for the MSME so that holistic and integrated development may be ensured for this sector.
Here are some of the suggestions for this sector to make it development -centric and employment generating:
- Need to have more technology so that specialty could be inserted in the place of generalization. So need of the hour is to become more digitally skasham .
Although if we see the comparative picture of MSME in India we get to know that there a lot has been done in this sector by the government but still there are some areas of improvement like the goal should be to strengthen the skills by providing the rural vocational training and enabling them with new technologies so that innovation may work. Also, we need to make the digital environment more acceptable and also make it “know more about”. There is no doubt in saying that in today’s time we are not advanced in any sector as in MSME .So we need today to invest more time, more money, more innovation, and more ideas so that we become self-reliant and the dream of AATMNIRBHAR-BHARAT becomes true.