Services sector has huge potential Madhav Lal Secretary MSME

The contribution of the services sector to the economy has been significant and the sector offers huge potential.
Services sector has huge potential Madhav Lal Secretary MSME

The services sector has tremendous potential, stressed Madhav Lal, Secretary, Ministry of Micro, Small and Medium Enterprises, Government of India. He was speaking at a session on ‘MSMEs in Services’ at the first edition of the Global Exhibition on Services, organised by the Ministry of Commerce and Industry in association with the Confederation of Indian Industry (CII) and the Services Export Promotion Council (SEPC) in New Delhi.

For many years, he elaborated, the focus has been on the manufacturing sector, even though the contribution of the services sector to the economy has been significant, and the sector offers huge potential. And within services, he said, the MSMEs play a significant role and account for a substantial contribution to the sector. Sharing figures, he said that the MSME segment contributes 7 percent to GDP towards manufacturing, but nearly 31 percent to the services sector. Therefore, there is a need to enhance the services sector, and MSMEs, to boost economic growth.

Speaking on the role of the Government, he reiterated Prime Minister Modi’s statement saying that the segments within services which have grown fastest have been those where Government presence has been minimal. He therefore stressed on the role that industry can play in boosting this sector, with support from the Government. He spoke about initiatives such as the formation of clusters, and how technology could be effectively used to connect and disseminate information by way of virtual clusters.

Going forward, he said, the focus will be on creating different value chains, and the strength of the economy will arise from how many of these value chains are globally competitive. He encouraged industry to strengthen its role in boosting the services sector so that it is globally competitive. Appreciating CII’s initiatives, especially with regard to MSMEs and services sector, he spoke about how CII has facilitated loans from banks for its MSME Members, and said that the launch of CII’s portal, would accelerate growth and boost connectivity, a pre-requisite in today’s global world. CII has partnered with CloudBuy, the global provider of e-commerce technology and B2B buyer-supplier solutions to create a secure online trading platform for CII Members.

In her special address, Lyn Duncan, CEO, CloudBuy, spoke of how the collaboration between CII and CloudBuy – the fusion of technology and CII’s wide membership base – would result in accelerating domestic and global trade using this platform.

Omar Luis Farah, Secretary General, Association of Small and Medium Enterprises of Tandil Province, Argentina, shared the potential for India-Argentina cooperation with the audience, inviting them to do business with Argentina.

Earlier, in his opening remarks, Praveen Toshniwal, Co-Chairman, CII National SME Council said that MSMEs are a major source of employment for over 100 million people and that India’s share in the global services industry can grow exponentially by improving cost value and global competitiveness.

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