Monday, 8 December 2014

Series of Blogs on the case for MSMEs - Blog One

The Modi government has made the promotion of ease of doing business an integral part of its agenda and is promoting it vigorously. A few important steps have already been taken. Within months of taking over by the Modi government, the Department of Industrial Policy and Promotion (DIPP) took a slew of measures to improve business-friendly environment in the country.
The above concerns can catapult the MSME sector, the largest employment provider after the agricultural sector and currently employing about 40% of India’s workforce, at the forefront of sectors standing disadvantaged due to an unfriendly business environment in India. Presently, entrepreneurs face various impediments in starting as well as promoting the enterprise, especially so in the micro, small and medium enterprises sector. The MSME sector in India stands at crossroads. Considering these facts the Finance Minister Shri Arun Jaitely in his budget speech had announced setting up of a Task Force for the MSME sector. Being member of this important committee I had the privilage of interacting with many stackholders on their concerns on various issues. In a series of Blogs and articles I will try to bring out those issues for public debate.
We have seen reports of various committees and Task Forces which have highlighted the problems and bottlenecks being faced by MSME sector. Those Committees have also given various suggestions for large scale reforms and remedial actions to be taken by the Government and other related agencies to address the issues. But the fact of the matter is that either action has not been taken by the desired intensity or the steps being taken are not sufficient enough. It is high time that we reassess the situation and rearrange ourselves to target the problems of the MSME sector with strong will and conviction.

Out of various impediments in the progress of this sector, we have identified some important ones and shall invite comments to analyse them threadbare to arrive at some concrete but achievable solutions.

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