MSMEs should explore cluster approach to achieve economic development: Sarangi

“The MSME industry needs to expand, its scope is enormous. We need to think of ways to provide entrepreneurs their due, to improve market availability and access and to provide technology,” said Pratap Chandra Sarangi, Union Minister of State for Micro, Small and Medium Enterprises.

Participating in an interactive session with Laghu Udyog Bharati-Karnataka Chapter, Sarangi said that the government understands the importance of MSMEs for the nation and is fully committed to support the MSME sector and reach its full potential. Now, the time has come to be a self-reliant country and for this MSME can play a very important role in this mission of nation-building, he said.

“With the government increasing opportunities for local MSMEs and reducing dependence on imports, MSMEs will be able to scale up operations and gain higher market share across the various sectors,” he added.

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The MSME sector contributes 29.7 per cent to India’s GDP and accounts for 49.66 per cent of exports and close to 45 per cent of the manufacturing output of the country. It was one of those hit hardest by the Covid-19 pandemic as supply chains were disrupted across the world and trade came to an almost standstill.

Sarangi said that, under the leadership of Prime Minister Narendra Modi, several measures were announced as part of the Aatmanirbhar Bharat package aimed to help MSMEs survive the impact of the unfolding pandemic, by infusing liquidity and laying the foundation of a more robust MSME sector for the long-term. Efforts should now be made that all the benefits announced for them reach them.

Replicate Khadi Model

Sarangi said MSMEs should explore the cluster development approach to achieve overall economic development.

The Minister cited the example of the Khadi industry and said: “Khadi industry gained prominence during our independence struggle under the leadership of Mahatma Gandhi. Gandhiji transformed a simple product into a symbol of national pride. A simple fabric became a great weapon for our national movement. Now, our Prime Minister wants to advance this idea and globalise Khadi.”

He added, “Similar adoptions can be made by adopting cluster approaches for various products manufactured by rural entrepreneurs. If the urban population buys rural-manufactured products, it will provide huge employment opportunities to rural populace and this way, we can serve the nation in a better way.”

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Jagadish Shettar, Karnataka Minister for Medium and Heavy Industries, said, “Karnataka has introduced several forward looking policies.” He added, “It is a forward-looking policy which is aiming towards the development of MSME sector; attract investments, job creation as well as promotion of micro and small units which should propel the State’s GDP growth.”

Tech challenges

PS Srikanta Dutta, President, Laghu Udyog Bharati, Karnataka Chapter (LUB-K), stressed on the need for more technology adoption by the MSMEs for better efficiency and competitiveness. “MSMEs face several challenges, including technological obsolescence, supply chain inefficiencies, increasing global competition, uncertain market scenario, and lack of funding. Given these challenges, it is critical to focus on creating tech-efficient MSMEs that they make optimal use of the technology-enabled platforms.”

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