MSMEs in India are at their epitome of performance standards. The
number of entrants in the MSME sector has increased multi-folds in the
last few years. The internet technology has brought in a revolution in
the way products and services are marketed and sold to a worldwide
audience. In order to cater to the rising demands within India and
abroad, it has become essential for Indian businesses to innovate and
develop high quality products that can sustain for a long time. This is
can definitely be referred to as the Amrut Kaal for the MSMEs in India.
The recent budget session of the Indian Government laid down the
plans for the MSME expansion this year. The Ministry of Indian MSMEs
have introduced new and improved schemes for the sector. It is a peak
time to turn bullish in terms of the output that could be generated from
this sector. The Indian MSMEs skill development is an important step to
enable the workers of the MSME sector to level up and improve their
skills in order to deliver high quality products over time. The Amrut Kaal
scheme is referred to as the scheme that will be initiated and acted upon
for the period of upcoming 25 years. This 2 and a half decade will prove
to be a turning point for the Indian economy in terms of the productivity
and the overall growth of the economy.
The primary focus of this year’s budget session went towards
infrastructure development. There were many other focus areas of
improvement out of which the priority towards the MSME sector
seemed obvious. The budget contained calculated steps to boost the
liquidity amongst the MSMEs. The long term vision of the government
for the MSME sector still remains intact. India’s micro, small, and
medium industries (MSMEs) need strong market support. With
digitization gaining momentum, it is essential MSMEs are able to
deliver and sell their products quickly and efficiently. A world class
modern infrastructure to facilitate seamless multimodal connectivity
will help in taking the MSME businesses to every nook and crany of the
country. The Prime Minister’s Gati Shakti National plan aims to solves
this burning issue of transportation.
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The ‘One station One Product’ scheme and the subsequent layout of
the multimodal logistics park along with the massive development of
25000 Kilometers of national highways will tremendously help shape
the future of the MSMEs in India. The local businesses and the supply
chains will be able to breathe a new life once these infrastructure plans
are completed. The migration of the workers from the cities during the
Covid-19 pandemic was one of the most horrific events that led to
widespread discontent amongst day laborers. There was a massive
demographic change in this case which paved the way for new ways of
local businesses to emerge. Once the effects of the pandemic subsided,
the businesses from the rural areas responded with renewed vigor and
new innovative businesses came to fruition.
The allocation to major schemes shall bring in more business
opportunities for the Indian MSMEs and increase their productivity.
There are other helpful provisions like the Emergency Credit Line
Guarantee Scheme (ECLGS) increment up to Rs 5 lakh crore and an
additional credit of Rs 2 lakh crore through Credit Guarantee Trust
for Micro and Small Enterprises (CGTMSE) scheme.
The design and development of various useful portals like Udyam,
e-shram, NCS and ASEEM by the government has been instrumental
in attempting to address the demand for MSME skill development and
credit facilitation. The overall output of the MSME sector could reach to
newer heights if the implemented policies are adopted properly.
A considerable amount of time is spent in allocation to major schemes
to avail approvals and documentation which could further be reduced if
a trust-based governance model is introduced to the system that looks
over the MSME sector as a whole.
Do watch: https://www.youtube.com/shorts/hffl-MRNYtM
A fresh allocation of Rs.262 crores has been approved for the Micro and
Small Enterprises Cluster Development Programme (MSE-CDP). There is
a dire need for upskilling amongst the MSME workers which could be
done accordingly as fresh amount of Rs. 235 crores and Rs. 205 crores
has been approved for tool rooms, technical education, and
‘Technology Centre Systems Programme’ (TCSP) respectively. Once the
level of technological understanding and its application improves at the
MSME workshop level, a massive shift in production aspects could be
observed as sophisticated methods of production ideally leads to
development of higher quality goods.
The role of SIDBI has also proved to be of massive importance to the
Amrut Kaal scheme in order to avail credit at low interest rates. This has
tremendously helped the newer entrants as well as the existing Indian MSMEs
to take advantage of the liquidity and further grow their businesses.
The Rs 50,000 crore expansion in ECLGS is exclusively earmarked for
struggling MSMEs in the hospitality sector. The budgetary allocation for
Prime Minster Formalisation of Micro Food Processing Enterprises (PM-
FME) has been increased from Rs 399 crore to Rs 900 crores. The
Raising and Accelerating MSME Performance (RAMP) program has been
launched with an outlay of Rs 6,000 crores over five years, aimed at
improving the competitiveness and efficiency of the sector with an
allocation of Rs 723 crores in FY’23.
Indian MSMEs enhancing Amrut kaal have been at the forefront in
taking leaps for the Indian exports. There is a huge demand for Indian
products that are locally sourced at the international level. This has led
to the industrialization of those unorganized sector within the local
economy of India. The proliferation of new and innovative MSME
businesses are pushing the boundaries of production at the grassroot
level and enhancing the amount of participation of rural people in the
widespread economic web of the country. The focus of the government
has shifted to new technologies like AI, drones, automation, quantum
computing and semi-conductors. These industries are welcoming lot of
new talent from all across the counting paving the way for the MSMEs
Amrut Kaal to materialize.