At the Business Standard Smart Business panel discussion on ‘Sustainable Growth of MSMEs – 2020: Focus Eastern India’ in association with Bharat Chamber of Commerce, panelists were unanimous that MSMEs needed government support to compete on a global platform.

“India is poised for growth, but what worries me is whether MSMEs will be able to reap the benefits. A study says that not more than 19 per cent of MSMEs are actually fit to go for global orders. Global companies will pick the best, so these 19 per cent are a threat to the balance 81 per cent MSMEs. It’s a lean versus non-lean scenario,” said Videocon Infinity Infrastructure Director, Goutam Sengupta.

“We need to think why MSMEs are not fit. Today, government policies are a disincentive for any MSME to invest. The government must come out with policies that enable MSMEs move up the value chain,” pointed out Bharat Chamber President, Rakesh Shah.

The panelists agreed that there were several obstacles to the growth of MSMEs in Eastern India, among which lack of easy access to credit was significant. “In a recent study on the growth of MSMEs in Odisha, Bihar, Chhattisgarh, West Bengal and Jharkhand, it was observed that the annual compounded growth rate in 2011-12 and 2013-14 was 14 per cent compared to an all-India growth rate of 16 per cent,” Shah said.

Former professor of economics at Indian Statistical Institute, Dipankar Dasgupta, pointed out that the government had a significant role in creating infrastructure for MSMEs so that they flourish, otherwise they would remain local entities catering to local needs.

There was, however, consensus that both the state and the Center were working towards creating the base for growth in the sector. Vikram Tantia, immediate former President of Silk Association of India, said, “With the government giving the necessary thrust, I am sure the MSME sector will grow.”

Source : Business Standard