The integration of micro, small and medium enterprises (MSME) is critical for the financial viability of Global Value Chains (GVCs), said Pratap Chandra Sarangi, Minister of State Animal Husbandry, Dairying and Fisheries and Micro, Small and Medium Enterprises, Government of India at an e-Conference organised recently on “Enabling the MSMEs for Global Value Chains”, on the occasion of International MSME Day organised by Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Speaking at the event, Sarangi said that not only do MSMEs provided a low-cost way of operations but also with their geographical reach and innovation capabilities, MSMEs form the cornerstone for fostering global economic growth.
“However, as Global Value Chains (GVCs) grow and the value addition capabilities of MSMEs increase, mechanisms would have to be formed to enable those MSMEs to be able to form their own value chains without fear of competition,” the minister said.
He said that in the process of integration to global value chain, MSMEs faced many challenges therefore efforts must be made to strengthen MSME sector locally to enable their penetration and reach globally.
Sarangi revealed that the role and potential of Indian MSMEs along with the need to improve their efficiency, productivity and quality needed to be viewed in the context of a globally competitive landscape.
“With the Government increasing opportunities for local MSMEs and reducing dependence on imports, Indian MSMEs will be able to scale up operations and gain higher market share across the various sectors,” he added.
He said that the Ministry of MSME was taking steps towards making these enterprises global and improve the overall business environment, by making it more conducive and transparent for all stakeholders.
“Private sector engagement in various bottlenecks of value chain and supply chain system is critical for success of various policies announced by the government,” he said.
Sarangi explained that while the Government worked on creating a level-playing field for the Indian MSMEs, these players would have to embrace technology and focus on value addition to enhance competitiveness in the global arena.
“The global economy is set to undergo massive changes post the coronavirus shock and provides India with a lifetime opportunity to strengthen its manufacturing prowess and position itself as a critical hub in global value chains,” He pointed out.
Speaking on the occasion, Alka Nangia Arora, Joint Secretary- Ministry of MSME, Government of India said that it was believed that Micro, Small, and Medium-sized Enterprises (MSMEs) are the first responders to societal needs.
“This type of enterprise has been found to be a major driver of poverty alleviation and development, helping to generate jobs and generate income across the globe,” she said.
She said that for adequately exploiting the potential of the MSME sector on an increasing scale in the future there was a need to target the international market on a much larger scale than what is being done currently.
“For emerging economies like India, if one has to make a mark on the global production network similar to other emerging economies, it is necessary to enable domestic forms viewing MSMEs to penetrate and link with the Global Value Chains on an increasing scale,” She explained.
The other industry leaders who were present on the occasion were Sudatta Mandal, Deputy Managing Director, Small Industries Development Bank of India (SlDBl); Ashutosh Chadha, Vice President & Head-Public Policy & Government Affairs-South Asia, Mastercard; Abhishek Agarwal, President–Judge India & Global Delivery, The Judge Group; Paresh Shetty, President – Sales Cloud4C Services, Anand Tandon, Founder and CEO, Myforexeye; Umesh Balani, Chairman, ASSOCHAM MSME Development Council & MD and CEO, Rotomag Motors and Controls; Vijay Sharma, Chairman, ASSOCHAM Haryana State Development Council & Director, Jindal Stainless, and Shri Sushil Kumar Sarawgi, Co-Chairman, ASSOCHAM MSME Development Council & Managing Director, KOR Energy (India).
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