Digitisation key to MSME growth: Experts
Exploring new markets and collaborations among companies in the same sector to help scale up businesses post Covid-19
Hyderabad: There are evident signs of economic recovery, the way the manufacturing sector is rebounding, and the increase in GST collection. There is opportunity for MSMEs to start riding on this economic revival, say experts.
Addressing a MSME Summit organised by the Confederation of Indian Industry (CII) on Saturday, Jayesh Ranjan, principal secretary, Industries & Commerce, ITE&C, Government of Telangana, said, making effective use of digitisation, targeting newer domestic as well as export markets and collaboration among MSMEs working in the same sector are the three key success mantras to achieve sustainable growth post Covid-19.
He added, “This unprecedented scenario requires coordinated and genuine effort from within the sector to overcome supply chain challenges. There are solutions available but the need of the hour is to change mindsets, attitudes and make technology adoption easy.”
Ranjan mooted the idea of encouraging industry associations, particularly MSME associations to adopt and work very closely with ITIs, to overcome the challenges of skilled professional.
Global financing
Speaking at MSME Summit, Jun Zhang Country Head- India, International Finance Corporation (IFC) who joined from Washington briefed members on the International Finance Corporation’s operation in India. He added that $8 billion fund was fast tracked for financing and so far $4 billion has been dispersed to sustain businesses and preserve jobs after the outbreak.
He added that IFC will continue to implement its long-term strategy on three pillars that include inclusion, productivity and sustainability.
Digital market place
Pranav Bhasin, director, MSME and Seller Experience, Amazon India in his address said that there is a 60-80 per cent spike in new sellers registering on Amazon.in. Today, there are more than 6,50,000 sellers on Amazon India marketplace from different corners of India and 90 per cent of these sellers include micro-entrepreneurs as well as small and medium businesses.
“Telangana is an important market for us from that perspective and we have made significant investments here. From Telangana, we have over 23,000 sellers on Amazon.in selling a wide range of products. Through the Karigar initiative, we have on boarded more than 3,000 master weavers, co-operatives, artisans and APEX bodies (including National Award-winning weavers) to sell online,” he informed.
Credit access
The conference was also addressed by OP Mishra, CGM, State Bank of India, who said that the government has been very proactive in identifying the issues faced by MSMEs and came up with various policies. In current times, there has been renewed interest among banks to facilitate MSME loans. In Telangana alone, there are exclusive 51 SME branches with dedicated managers to handle the requirements of SMEs.
The Government of India’s target is to increase MSME’s present share of 29 per cent of GDP to 50 percent in next five years and raise its export contribution from 49 per cent to 60 per cent. Hence there is a tremendous opportunity in exports for MSMEs.
“We need to focus on enhancing the competitiveness of MSMEs so that they will be able to keep up the standards in global market and compete with other nations,” said Mahesh Desai, chairman, EEPC & Mentor-CII Telangana MSME Panel.
Sameer Goel, vice chairman-CII Telangana said, though a few MSMEs have received finance from banks post Covid-19, there are several others who need such assistance for their revival and get back to the normalcy.
MSME-lending can be the largest source of value creation for the financial services industry. It’s both an obligation and an opportunity whose time has come. It will have a multiplier effect on GDP.
AVS Reddy, convener, CII Telangana MSME Panel, said it is a good sign that India’s merchandise exports increased by 6 per cent to $27.58 billion in September 2020, imports decline by 19.6 per cent to $221.86 billion in comparison to September 2019. Several sectors have started recovering.
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