MSMEs to Become Part of the Global Supply Chain
Efforts Underway to Develop a Framework for Medium Enterprises, Focus on Increasing Technology Usage
The Ministry of Micro, Small, and Medium Enterprises (MSME) and NITI Aayog have been working together to integrate Indian MSMEs into the global supply chain. The government aims to make MSMEs a significant part of global trade to enhance their participation in exports.
To achieve this, a framework is being developed for medium enterprises. Last month’s budget also included provisions to strengthen MSMEs' role in the global supply network. Notably, MSMEs contribute 55% of India’s GDP and 30% of total exports.
Focus on Technology Integration
Experts suggest that technology-driven business models and manufacturing processes are essential for MSMEs to become competitive. Currently, Indian MSMEs lag behind European countries in technology adoption. Recognizing this, NITI Aayog is conducting a comprehensive study to assess technology usage across the MSME sector and devise strategies for improvement.
To make Indian MSMEs more globally competitive, special attention is being given to medium enterprises, particularly those engaged in manufacturing. The government is planning to offer credit facilities for companies with an annual turnover between ₹100 crore to ₹500 crore. This initiative, announced in the last budget, will help overcome financing challenges faced by these businesses.
MSMEs to Receive Loans from UPI by March End
By the end of March, MSMEs will start receiving credit through the Unified Payments Interface (UPI). The Finance Minister had first proposed this initiative during the budget presentation in July last year, and its implementation is now underway.
A task force has been set up to streamline loan disbursal, making credit more accessible to MSMEs. Efforts are also being made to compare Indian MSMEs with their global counterparts to identify areas of improvement.
Overall, the government’s strategy aims to boost MSMEs' role in international trade and ensure that small and medium enterprises contribute effectively to economic development.
