UDYAMI Bharat: MSME Day | Gist of Rajya Sabha TV / RSTV (now Sansad TV) - UPSC PDF Download

Introduction

The Perspective program on Sunset TV highlights the critical role of Micro, Small, and Medium Enterprises (MSMEs) in India’s economy, contributing 30% to GDP, nearly 50% of exports, and employing over 28 crore people, making them the second-largest employment sector after agriculture. Recognized globally, the United Nations declared June 27th as International MSME Day, with the 2025 theme emphasizing MSMEs as drivers of sustainable growth and innovation. The panel, featuring Mr. Pravin Kandelwal (MP and former CAIT Secretary General), Mr. Ashoke Seagel (CII National MSME Council Co-chairman), and Ms. Rrookmani Atri (Joint Development Commissioner, Ministry of MSME), discusses MSMEs’ evolution, challenges, government initiatives, and future prospects.

Key Contributions of MSMEs

• Economic Impact: Drive 30% of GDP and nearly half of India’s exports.
• Employment Generation: Provide livelihoods to over 28 crore people, fostering inclusive growth.
• Sustainability and Innovation: Align with global development goals through environmentally and socially responsible practices.

Government Initiatives

• RAMP Scheme: Supports technology upgrades and financial assistance.
• PM Vishwa Karma: Promotes inclusivity for traditional artisans and craftspeople.
• Udyam Registration & Assist: Simplifies formalization and access to benefits via digital platforms.
• TReDS Platform: Ensures faster payments, reducing financial risks.
• DX Edge Initiative: Drives adoption of Industry 4.0 technologies like AI and automation.

Key Highlights

• Economic Backbone: MSMEs contribute 30% to GDP and employ over 28 crore, vital for rural and inclusive development.
• Global Recognition: International MSME Day 2025 focuses on sustainable growth and innovation.
• Government Support: RAMP and PM Vishwa Karma enhance technology, finance, and artisan inclusion.
• Digital Transformation: Udyam platforms streamline registration and access to credit and benefits.
• Financial Solutions: TReDS and dispute resolution portals address delayed payments and cash flow issues.
• Industry 4.0 Adoption: DX Edge boosts productivity and global competitiveness through modern technologies.
• Global Partnerships: Collaborations with Japan, the US, and Taiwan foster innovation and market access.

Key Insights

1. Economic and Social Pillars
   MSMEs are central to India’s economy, driving GDP, exports, and grassroots job creation. Their role in poverty alleviation and rural development underscores their importance for inclusive growth.

2. Sustainability Leadership
   MSMEs’ close ties with communities enable them to adopt sustainable practices effectively, serving as a model for environmentally and socially responsible business.

3. Coordinated Government Approach
   The whole-of-government strategy, exemplified by RAMP, ensures cohesive policy implementation across central and state levels, addressing diverse MSME needs.

4. Revolutionizing Financial Access
   TReDS and initiatives like “loan within 59 minutes” reduce credit barriers, enabling faster loan disbursement and improving financial inclusion for MSMEs.

5. Digital Formalization
   Udyam Registration and Assist platforms integrate MSMEs into the formal economy, enhancing transparency and credibility for accessing benefits and credit.

6. Embracing Industry 4.0
   DX Edge promotes automation, AI, and data-driven management, particularly in tier 2 and 3 cities, to boost productivity, quality, and global competitiveness.

7. Global Collaboration for Growth
   Partnerships with countries like Japan and the US facilitate technology transfer and global market access, enabling MSMEs to meet international standards.

8. Empowering Traditional Sectors
   PM Vishwa Karma integrates artisans into the entrepreneurial ecosystem, preserving cultural heritage while fostering economic inclusion.

9. Boosting Export Competitiveness
   Initiatives like the toy industry’s shift to domestic manufacturing support self-reliance (Atmanirbhar Bharat) and ambitious export goals.

10. Policy for Future Growth
    Simplified compliance, expanded digital infrastructure, and rising digital literacy are critical to unlocking MSMEs’ full potential.

Challenges and Opportunities

• Challenges: Timely credit access, delayed payments, and adoption of advanced technologies.
• Opportunities: Digital platforms, financial innovations, and global partnerships to enhance competitiveness and sustainability.

Conclusion

India’s MSMEs are a transformative force, driving economic growth, innovation, and social upliftment. With robust government support through schemes like RAMP, PM Vishwa Karma, and digital platforms like Udyam, MSMEs are poised to overcome challenges like credit access and technological gaps. By embracing Industry 4.0, fostering global collaborations, and prioritizing sustainability, MSMEs can lead India toward its vision of a developed nation by 2047, ensuring inclusive and sustainable economic progress.