Industrialization is the key to development in any economy. Indian economy also needs a strong base of MSMEs to support itself. During the past five years the micro, small and medium enterprises have evolved over time. They have faced many problems over these years. They have gone through both depression and boom period.
The Make in India movement started by our prime ministers Narendra Modi opened the sector to new opportunities. It promoted globalization and increased the growth of the economy whereas the second policy that was the implementation of goods and services tax on goods slowed down the progress
According to the recent study, there are in total of 40 million MSMEs. About 63.05 million micro industries, 0.33 million small and about 5000 medium entrepreneurs are there in the Indian economy. The total operating MSMEs represents 45 percent of total manufacturing output.
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India MSMEs are ranked second after China. The total share of MSMEs to GDP is nine percent.
The Micro, Small, and Medium Enterprises (MSMEs) in India accounts for more than 45 percent of the total manufacturing output of the country. There are approximately 40 million MSMEs in India, which ranks the second largest, after China. These enterprises account for more than 40 percent of the total exports of the nation and contribute nine percent to the GDP.
In 2019 election BJP have released their manifesto. It has mentioned the following points.
- They promised to Protect the interests of small traders
- The party if won then will provide accident insurance of rupees 10 lakh to all the traders registered under GST.
Whereas the Congress party manifesto the following
- Its promises to exempt MSME from all the laws which ate applicable for three years
What is expected by MSMEs? Views of certain people
- “The MSME ministry is recognizing the industry which is growing. But though there are various schemes and benefits provided by the government, people are not aware of it. They must start awareness programmers’ so that the MSMEs can avail the best of the benefits.”- Nipun Gupta, Director, Springfit Mattresses, says,
- “The MSME ministry must increase its training programs as it helps the small-scale businesses gain reach and helps in funding.”- Vimal Prajapat from Ramnarayan Blue Art Pottery
- “There are many reasons such as networking extensions beyond work hours, male support groups, etc. Unfortunately, there are not many women in business, and neither is there enough support structures.”- Bhavna Anand Sharma, Founder, Cureveda
- “It is difficult to get the benefit of MSME schemes as the processes involved are lengthy. Many schemes don’t have a proper and practical implementation.”-
Kirti Agarwal, Founder, Krishna Industries
In the last few years, the working of the MSMEs is getting safer. MSMEs are getting better opportunities but still, there are challenges that need to overcome by them.
However, they are aiming at a few things from the next elections. They want there should be more awareness regarding the MSMEs sector.
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The women’s should get empowered. More schemes for women should start. The traditional small sector entrepreneurs need training. More Training Programmes should get started.
Overall the sector needs good industrialization strategy. Better technology is needed and the government should make available for these sectors. The constraint of low funds should be looked after. Easy loans should make available. The sector should make open to the international market. Facilities like power, water, roads, etc should be provided at low cost.
Taxation policy should be in favor. Let’s see how many demands are fulfilled after elections.