Abstract

MAKE INDIA INNOVATIVE AND COMPETITIVE: ROLE OF MSMES

Ravin Kadian, Aarti Chahal

Volume: 5 Issue: 3 2015

Abstract:

“Make in India” an ambitious campaign was launched by Prime Minister, Narendra Modi on 25 September 2014, with an aim to turn the country into a global manufacturing hub. He has launched this campaign to encourage companies to manufacture their products in India, aiming to redesign manufacturing sector as a key engine for India’s economic growth. Current study focuses on highlighting the role of MSMEs in the “Make in India” initiative. Quantitative data regarding this has been collected using various reports like Reserve Bank of India Database on Indian Economy, Database of Department of Industrial Policy and Promotion and report of CII’s 13th manufacturing summit 2014. It has been analyzed that the key area of progress for India would be the development of its MSMEs to achieve and manage scale effectively. Our supply chains are over-dependent on MSMEs. The MSME sector employs over 80 million people in 36 million units, and contributes 45 percent of the manufacturing output. However our MSMEs are struggling due to lack of access to investment. According to a study conducted by the US-based Entrepreneurial Finance Lab (EFL), a credit gap of 56 percent exists in the MSME finance sector in India; while demand is estimated to be INR 28.03 trillion, the supply finance provided only INR 10.39 trillion, as of July 2014. It has also been studied that how MSME sector is recognized as the key engine for growth to promote entrepreneurship across the country.

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