September 25, 2019
Country sessions with South Korea and Saudi Arabia along with a discussion on ‘Can MSMEs Contribute 50% to Indian’s GDP?’were organized
Calling for domestic and foreign investment and collaboration in the sector, Mr Gadkari said that the MSME sector in India has tremendous potential
India is aiming to raise MSMEs’ present share of 29% in GDP to 50% in the next five years and raise its export contribution from 49% to 60%
India will soon launch a new e-commerce website “Bharat Mart” to enable MSMEs to sell their products in local as well as international markets
The 16th Global SME Business Summit 2019 was inaugurated in New Delhi on September 24-25. The summit is organized every year by the Ministry of Micro, Small and Medium Enterprises (MSME) and the Confederation of Indian Industries (CII). The theme of the summit this year was “Making Indian MSMEs Globally Competitive.” Inaugurating the summit, the Union Minister for Micro, Small and Medium Enterprises and Road Transport & Highways, Shri Nitin Gadkari, said that reducing the cost of capital, logistics and power was crucial to making the Indian MSME sector globally competitive. The summit was attended by over 500 delegates from more than 15 countries.
Calling for domestic and foreign investments and collaborations in the sector, Mr Gadkari said that the MSME sector in India has tremendous potential to push growth and generate employment. He said that the government’s priority was integrated development of the rural and agro-based enterprises along with the urban-based enterprises. Opportunities are abound in development of honey, bamboo, textiles, bio-fuels, water transport, fisheries, dairy, food processing in the rural areas and ancillary units of defence, railways, highways, waterways and other industries in the urban areas, he said, and appealed to investors to come forward for investment and collaboration.
The government is aiming to raise MSME’s present share of 29 per cent of gross domestic product (GDP) to 50 per cent in the next five years and raise its export contribution from 49 per cent to 60 per cent. To achieve these targets logistics, power and capital cost will need to be reduced. Meanwhile, for affordable capital, the Ministry is in talks with ADB, KfW and World Bank for their credit line. Presently, around 200 Indian SMEs are registered on the stock exchange, and the government is urging more companies to register. The problem of delayed payments to MSMEs is also being looked into and Mr Gadkari said that the UK Sinha Committee Report will soon be implemented.
The Ministry will soon launch a new e-commerce website “Bharat Mart” to enable MSMEs to sell their products in local as well as international markets. The Ministry is also in the process of developing a digital MSME portal which will work as a virtual meeting place for all stakeholders of the sector. For the more than 75 lakh MSMEs currently registered with the Ministry, this will provide a platform where they can interact globally to fulfil their requirements for funding, knowledge, technology, skilling and marketing, making them more competitive and integrated with the global value chain. The ministry will open new 135 new tool rooms and technology centres to aid entrepreneurs.