Adopting lean, green, and quality-driven practices is no longer optional for India’s MSMEs — it is vital for their survival and long-term growth, said Sandeep Kishore Jain, President of the Federation of Indian Micro, Small and Medium Enterprises (FISME).
Speaking on Zee Business’ SME Express show, Jain emphasized that MSMEs must embrace sustainable business models, improve efficiency, and prioritize quality to remain globally competitive. “Being lean is essential,” he said, explaining that lean models minimize waste, reduce costs, and build resilience against market fluctuations and geopolitical shocks.
Sustainability as an investment, not an expense
Jain urged entrepreneurs to view sustainability as a long-term investment rather than an additional cost. “This is not a cost; it’s a journey we must undertake. Green practices protect our future while improving operational efficiency,” he noted, calling for a shift in mindset among small business owners.
He proposed a three-pronged strategy for India’s MSME green transition — improving awareness, easing financing, and launching targeted support schemes. FISME plans to conduct cluster-level workshops to educate entrepreneurs about existing green policies and subsidies under the Green MSME Policy.
Jain also stressed the need for affordable financing, suggesting that loans at 1–2% interest could help MSMEs adopt sustainable models without heavy financial strain. He further proposed a ₹5,000 crore Green MSME Fund to support enterprises that lead in adopting renewable energy, cleaner technologies, and sustainable processes.
Solar adoption and energy efficiency
Highlighting energy costs as a major concern, Jain advocated for widespread rooftop solarisation across MSME clusters. “Solar is the way forward,” he declared, citing data showing a 160% rise in rooftop capacity to 2.8 GW. For MSMEs lacking adequate roof space, he suggested participating in cluster-based solar villages or inter-state power trading models.
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Quality as a non-negotiable standard
Reinforcing the importance of product excellence, Jain said, “Quality is a given — it is not optional anymore.” He warned that enterprises failing to uphold quality standards will struggle to survive in today’s global markets. He also called for greater worker participation in quality initiatives, encouraging owners to reward employee-driven innovations that improve processes.
“The blend of lean efficiency, green sustainability, and quality excellence is the winning formula for MSMEs,” he said, citing the Tirupur textile cluster as an example of successful implementation.
Government support and future outlook
The Indian government is already assisting MSMEs in adopting these models through programs such as the MSME Competitive (Lean) Scheme, MSE-SPICE Scheme, and GIFT Scheme.
With sustainability, cost-efficiency, and quality assurance emerging as key competitive advantages, MSMEs that invest early in lean and green transitions are likely to be the strongest performers in India’s future industrial growth story.