The current level of global trade across countries is happening at an
unprecedented rate. This is primarily due to the impetus on globalization
and the adoption of technology that eases human efforts in order to
carry out transportation and logistics activities. India has been on the
fore front of global trade in terms of the amount of exports that are
undertaken every year. There is a huge demand for the products that
are produced in India in the foreign market. This is especially due to
the high quality outputs of the businesses from the MSME sector.
India’s National logistics policy as announced by the Prime Minister
recently will help accelerate growth and thus increase the rate at
which India participates in global trade.
The recent efforts that are being undertaken to stimulate the logistics
policy will help the farmers of our country and also the local business
within MSME sector. Good policies and their implementation often lead
to good outcomes. It is of paramount importance for the MSMEs to make
sure that these logistic policies are implemented as per the discussions
and routinely keep a check on the updates provided by the Ministry of
MSME about the same. The recent announcement regarding the decision
on PLI schemes relating to the National programme on High Efficiency
Solar PV Modules will enhance manufacturing in the MSME sector and
boost the amount of investments entering the sector.
It is very important to have proper and efficient transport guidelines
laid down by the Ministry in order to carry out the daily activities of the
MSME in a much smoother manner. The cabinet earlier approved the
National Logistics Policy, which aims at reducing the transportation cost
and improving the global performance of the sector.
The process of transportation of goods and services must happen at a
much swifter pace and in order to enable that the Central Government
recently made new provision that seeks to reduce the transportation
cost by promoting seamless movement of goods across all parts of the
country. The Government is making the best of their efforts to establish
this process so that MSME businesses can make good use of it. This will
encourage the logistics businesses as well to enable the swift
movement of the goods produced by the MSME sector.
The cabinet has also approved the modifications in the scheme for
goods such as semi-conductors and display manufacturing ecosystem
with uniform fiscal benefit of 50 percentile of the project cost for all the
technology nodes that comes under the purview of the ambitious
programme.
For more information: https://smeventure.com/developing-countries-are-more-prone-to-msme-financing-gaps/
India has been on the radar of world trade from the inception of
liberalization during the early 1990’s. There have been a lot of changes
in the policy structure from during that time period. Many industries
have evolved and the competition for Indian products have also
increased in the international marketplace as other countries with a
strong foothold in manufacturing like China have increase their rate of
international trade with other countries all across the globe.
Logistics efficiency is a function of infrastructure, services (digital
systems/processes/regulatory framework) and human resource. The
PM Gati Shakti National Master Plan (NMP) for multimodal connectivity
infrastructure to various economic zones, has been launched. PM
GatiShakti NMP is a transformative approach for improving logistics
efficiency and reducing logistics cost, with focus on integration of
existing and proposed infrastructure development initiatives of
different agencies, to ensure first and last mile connectivity, for
seamless movement of people and goods.
While development of integrated infrastructure and network planning
is envisaged to be addressed through the PM GatiShakti National
Master Plan, for efficiency in services (processes, digital systems,
regulatory framework) and human resource, the National Logistics
Policy is the logical next step. This will provide a comprehensive agenda
for development of entire logistics ecosystem.
The Policy will be implemented through a Comprehensive Logistics
Action Plan (CLAP).
The Government of India has announced PLI scheme for 13 different
sectors in order to create national manufacturing champions and
generate employment opportunities. The total outlay as per the
recent budget announcement accounts to approx. Rs. 1,97,291 Crore.
Some of the notable industries included under the welfare of this
scheme comprise of Mobile Manufacturing and Specified Electronic
Components, Critical Key Starting materials/Drug Intermediaries and
Active Pharmaceutical Ingredients, Manufacturing of Medical Devices,
Food Processing, Electronic / Technology Products, Pharmaceuticals
drugs, Telecom & Networking Products, White Goods (ACs & LED), High
Efficiency Solar PV Modules, Advanced Chemistry Cell (ACC) Battery,
Textile products : MMF and Technical Textiles, Automobiles and Auto
Components, Specialty Steel.
Do watch: https://www.youtube.com/shorts/fHxcFnups64
The Prime Ministers clarion call for an & AatmaNirbhar Bharat & envisages
policies for the promotion of an efficient, equitable and resilient
manufacturing sector in the country. Growth in production and exports
of industrial goods will greatly expose the Indian industry to foreign
competition and ideas, which will help in improving its capabilities to
innovate further. Promotion of the manufacturing sector and creation
of a conducive manufacturing ecosystem will not only enable
integration with global supply chains but also establish backward
linkages with the MSME sector in the country. It will lead to overall
growth in the economy and create huge employment opportunities.
Many of the logistics company in India are expecting a huge demand
surge in the services that they provide in the upcoming years due to the
increase in the quantity of trade and transport activities. This leads to
the impetus that helps in the survival and further growth of the MSME
sector. In the coming years, India is keen to make its mark in terms of
global trade volumes and the MSME sector gets to squeeze most of the
benefits out of that. India is thus on the pedestal of becoming a
developed nation in the coming years due to the rapid growth in
modernization of trade and technology facilities that are being
undertaken right now. The contribution of the MSMEs towards this
rapid development will forever be etched in the growth story of India.