Focus On Elevating Micro Units To Medium Scale For Economic Growth: MSME Secretary

In a bid to boost the productivity and efficiency of micro, small, and medium enterprises (MSMEs), the government is set to prioritize their upward growth and encourage the transformation of more micro units into medium-sized enterprises, according to MSME Secretary Subhas Chandra Lal Das. Speaking on the final day of the Vibrant Gujarat Global Summit, Das mentioned that the government is collaborating with state authorities to achieve this goal, emphasizing that around 90 per cent of the country's MSMEs are currently micro units.

Additionally, the government plans to work closely with nano enterprises, a subset of micro enterprises, by integrating them into priority sector lending and introducing more customized schemes for their benefit. “Nano enterprises, due to their limited turnover, currently operate outside the purview of the goods and services tax and miss out on various schemes. Many of these small businesses face challenges in accessing formal credit channels,” he said.

Highlighting the scale of nano enterprises, Das mentioned that approximately 2.1 crore such entities have registered on the government's Udhyam registration portal. Looking ahead, the MSME Secretary set a target of achieving 3 crore registrations on the Udhyam portal by the end of the year.

MSME Growth productivity

Das also stressed the importance of improving the quality and productivity of MSMEs in the country, asserting their crucial role in achieving the vision of ‘Viksit Bharat’. Currently contributing one-third of the country's GDP and around 50 per cent of exports, MSMEs employ approximately 16 crore individuals.

Recognizing the need for further expansion, Das stated that the MSME sector's contribution must increase to meet the goal of developing the economy by 2047. The government's initiatives aim to create an environment conducive to the growth and sustainability of MSMEs, ensuring their pivotal role in India's economic landscape.

During the summit, Prakashbhai Parsotambhai Varmora, Dhrangadhra MLA, emphasized the vital role of Gujarat’s micro, small, and medium enterprises (MSMEs) in the growth of large companies.

"No significant corporation can thrive without the support of these smaller entities. Gujarat is a thriving hub of MSMEs, and collaboration between large companies and these smaller firms can strengthen the supply chain, leveraging the state's robust vendor support," Varmora stated.

Speaking to Opportunity India, Varmora pointed out the positive impact of the Vibrant Gujarat Summit, providing local entrepreneurs with opportunities to secure funding for their ventures and integrate new technologies into their operations.

Addressing the role of banks in supporting MSMEs, the MLA emphasized the importance of ecosystem development, stating that it enhances the viability of firms. He noted that, compared to other states, banks in Gujarat feel more comfortable providing credit to MSMEs with minimal collateral when a conducive business environment is established.

Rane Reiterates 'Vision 2047'

Union MSME Minister Narayan Rane was also present on the last day of the event. Highlighting the broader impact of Vibrant Gujarat, Rane emphasized its significant role in propelling the state towards advancements in industrial, commercial, and technological sectors.

"Vibrant Gujarat will benefit a lot in ensuring that Gujarat moves ahead in industrial, commercial, and technological sectors and India becomes developed by 2047, when the country celebrates the centenary of its independence," stated Rane, echoing the broader vision of propelling India into a developed nation within the next two decades.