India booms in economic growth; expect USD5 trillion economy by 2025

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New Delhi: The Indian economy has shown an excellent growth performance over the past few years and is likely to emerge as one of the leading economies in the world, poised to become a USD 5 trillion economy by 2025. Thus, a major impetus is to be made to reinforce the overall Entrepreneurship Development eco-system, and impediments need to be understood in terms of the internationalization of these enterprises.

Ministry of MSME has been tirelessly working towards the development of MSMEs and has undertaken interventions to enhance the MSME ecosystem in India. Some of the key reforms introduced by the Ministry of MSME are:

  • Revision of MSME definition: In line with the Government of India’s top focus on energizing MSMEs in the country, the Government of India approved the upward revision of the MSME definition on 1st June 2020 under the Aatma nirbhar Bharat Package. The Government revised the MSME classification by inserting composite criteria of both investment and annual turnover.
  • Udyam Registration: Udyam is an online and simplified procedure of filing registration that enables MSMEs to obtain registration without any documentation and fees. It is a globally benchmarked process and a revolutionary step towards Ease of Doing Business. Ministry of MSME has also commenced API integration of the Udyam Registration portal with GeM so that MSEs can participate in Government procurement easily.
  • Champions Portal: CHAMPIONS is an online platform to help and handhold the MSMEs especially in this difficult time. It is an ICT-based technology system aimed at making the smaller units big by solving their grievances, encouraging, supporting, helping, and handholding throughout the business lifecycle. The platform facilitates a single-window solution for all needs of MSMEs.
  • National SC-ST Hub (NSSH): National SC-ST Hub has been launched to promote entrepreneurship culture in the SC-ST community and fulfill the 4% procurement target mentioned in the Public Procurement Policy order, 2018. To boost entrepreneurship among SC/ST population and for maximum on-ground penetration, several interventions have been undertaken to cater to the challenge of market linkages, finance facilitation, capacity building, etc.
  • Self-Reliant India (SRI) Fund: The scheme is expected to facilitate equity financing of Rs.50,000 crore in the MSME Sector. The infusion of equity will provide an opportunity to get MSMEs listed in stock exchanges. Further, it will also facilitate MSMEs to scale up their business & growth and will help to create more jobs in the MSME sector.
  • Procurement Policy: For providing marketing support to MSEs, all Central Ministries/Government Departments and CPSEs are required to procure 25% of their annual requirements of goods and services from MSEs including 4% from MSEs owned by SC/ST and 3% from MSEs owned by women entrepreneurs under the Public Procurement Policy.
  • Establishment of Enterprise Development Centers (EDCs): To provide Information related to MSMEs in one place, Enterprise Development Centres (EDCs)have been conceptualized. To date Ministry of MSME has set up 102 EDCs across India. These centers aim to build a network of entrepreneurial leaders by providing professional mentoring and handholding support services to existing as well as aspiring MSMEs with a special focus on rural enterprises continuously.

India is home to more than 6.3 crore MSMEs, which have the ability and capability to access international markets and work as ancillaries to larger international firms. In terms of exports, the sector holds high potential in various sub-sectors such as textiles, leather & leather goods, pharmaceuticals, automotive, gems & Jewellery, etc. with an overall contribution of 45 percent.