Know How Indian MSME Sector Is Making Big Waves?

In 2021-22, the contribution of MSMEs to the Indian export industry reached new heights, with 45.03% of all exports being attributed to products manufactured by MSMEs. This amounts to a staggering 422,004 million US dollars in value. 

Recognizing the importance of MSMEs in driving the country's economic growth, the Ministry of MSME is implementing the International Cooperation (IC) Scheme. This scheme provides financial assistance to eligible government organizations and industry associations to participate in international exhibitions, fairs, and conferences. 

Additionally, the newly launched component of IC Scheme, the Capacity Building of First Time Exporters (CBFTE), provides reimbursement to new MSME exporters for costs incurred on registration, export insurance premium, and quality certification.

What measures is the Indian government taking to increase MSMEs' global reach? How is the International Cooperation Scheme helping MSME exporters? What are the benefits of the Capacity Building of First Time Exporters component of IC Scheme? What impact will these measures have on the growth of MSMEs in India?

Find out the answers to these questions in this article.

The Ministry of MSME has been implementing various schemes and programmes aimed at providing investment for adoption of the latest technologies and promoting exports. The initiatives include various digital platforms, incubation centres, technology centres, and schemes for capacity building.

Digital Initiatives

The government has launched several digital initiatives to support MSMEs, such as the Udyam Registration portal for online registration, Champions Portal for grievance redressal, Government e-Marketplace (GeM) for online procurement, Trade Receivables Discounting System (TReDS) for discounting invoices, and msmemart.com for facilitating online marketing support.

As on date, over 1.39 crore MSMEs are registered in the Udyam Registration portal, and procurement from Central Ministries/Departments/CPSEs has made purchases worth Rs 139018 Cr. from MSEs.

Incubation Centres

To develop and nurture innovative ideas, the Ministry of Micro, Small, and Medium Enterprises has implemented the MSME Innovative Scheme under MSME Champions Scheme. There has been a rise in the number of incubation centres in the country, with 69 Atal Incubation Centres (AIC) established by the Atal Innovation Mission (AIM). Since its inception, 3052 startups have been incubated by the AICs, generating over 15,506 jobs.

Technology Centres

The Ministry of Micro, Small and Medium Enterprises has established Technology Centres (TCs) to provide technological support to industries in sectors such as engineering, electronics, electricals, fragrance and flavour, glass, footwear, and sports goods. The ministry also implements various schemes and programmes aimed at providing investment for adoption of latest technologies in the MSME sector.

Capacity Building

The Ministry of MSME is implementing the International Cooperation (IC) Scheme to increase the contribution of MSMEs in Indian exports and enhance their competitiveness. The scheme includes financial assistance for participation in international exhibitions, fairs, buyer-seller meets, and international conferences. Under the Capacity Building of First Time Exporters (CBFTE) component of the IC Scheme, reimbursement is provided to new MSME exporters for costs incurred on registration, export insurance premium, and testing and quality certification.

There are various government initiatives and schemes to promote digital empowerment and ease of doing business, along with the establishment of technology and incubation centres, are aimed at boosting the MSME sector in India. These measures will help MSMEs to grow and contribute to the economic development of the country.