If Indian industry is to scale new heights and be a huge provider of employment, then it must use medium and small enterprises as enablers. According to a CII-KPMG report on the ‘New wave Indian MSME, an action agenda for growth’, India needs to develop an eco-system that enables and continuously supports businesses that are gearing-up to deliver the right product, the right quality, the right solution and the right service at a competitive price both, in domestic and international markets. The Micro Small and Medium Enterprises (MSME) sector can act as a catalyst that can bring about this socio-economic transformation of the Indian economy.
Performance-incentive approach
For MSMEs to deliver, they need a new framework which considers a ‘performance incentive-based’ approach rather than a compliance-based system, the report said. A strong MSME sector needs a robust infrastructure support mechanism, regulatory reforms to enable ease of conducting business, financing and funding options for businesses and skill development. Increasing the share of MSME contribution across key public and private industry sectors will result in higher domestic demand, growth in exports, indigenisation and import substitution, the report added.
Read the whole report here .