theIASHub | 03 May, 2025
Enhancing Competitiveness of MSMEs in India Report: Recently, NITI Aayog, in collaboration with the Institute for Competitiveness, released a report titled "Enhancing MSMEs Competitiveness in India" to boost the sector’s growth.
o Better Access to Credit: More MSMEs are getting formal loans, but there is still a big gap, with only 19% of credit needs being met.
o Issues with CGTMSE: The Credit Guarantee Fund (CGTMSE) has grown but needs improvements to provide better services to MSMEs.
o Lack of Skills: Many workers in MSMEs don't have formal training, which affects productivity. There is also not enough focus on research and new ideas.
o Tech Challenges: MSMEs struggle to adopt modern technology due to poor infrastructure and high costs.
o Sector-Specific Issues: Sectors like textiles, chemicals, automotive, and food processing need to update technology and improve marketing.
o Policy Issues: Many MSMEs don’t know about government policies meant to help them, so these policies aren’t very effective. There needs to be better implementation at the state level.
o Suggestions: MSMEs should focus on digital marketing, work with logistics companies, and create better market connections, especially in growing areas like northeast and east India. States should have flexible policies to support MSMEs.
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