Lok Sabha Elections 2019: What do MSMEs want?

Considered as the backbone of the Indian industry, Micro, Small, and Medium Enterprises (MSMEs) in India accounts for more than 45 percent of the total manufacturing output of the country. There are approximately 40 million MSMEs in India, which ranks the second largest, after China. These enterprises account for more than 40 percent of the total exports of the nation and contribute nine percent to the GDP.

According to a study by KPMG, the handloom and handicrafts industry of India plays a significant role in exports. India also enjoys a unique global position in terms of producing all the commercially useful varieties of silk.

In recent years, the sector has emerged as a major supplier of mass consumption goods as well as a producer of electronic and electrical equipment and drugs and pharmaceuticals. The MNCs worldwide also want to foray into this Indian market.

Though the influence of MSMEs is strong in the Indian economy, it goes through a series of ups and downs. Despite the government implementing various schemes for the empowerment of MSMEs, the implementation of GST in 2016 and lack of credit availability dealt a hard blow to the sector.

Every five years, just ahead of the General Elections, political parties go all out to woo the MSME sector with their manifesto. Each party promises to implement schemes and methods to strengthen the backbone of the Indian industry. But according to the small-scale entrepreneurs, a lot more has to be done.

The BJP released their manifesto recently ahead of General Elections 2019, stating that to protect the interests of small traders, if elected the party would provide an accident insurance of Rs 10 lakh to all the traders registered under GST. On the other hand, the Congress party manifesto promises to exempt MSMEs from all applicable laws for a period of three years.

SMBStory reached out to some MSME entrepreneurs to see what they want from 2019 Lok Sabha Elections.

In the past few years because of macro factors like positive consumer sentiment,

liberalisation of the world economy, and dynamic education, MSMEs have found a safe

haven in this country. However, to empower the MSMEs, the government needs to adopt the approach of nurturing them.

“The government must not act against MSMEs but rather support them and aid them. Once this is achieved the system must promote these businesses both in the domestic and international markets through recognition, felicitation, and regular training,” says Neeraj Kumar Nir, Founder of Aishwarya Healthcare, which is among the top manufacturers of IVF in India.

There is also a pressing need for awareness programmes for the MSME sector. Nipun Gupta, Director, Springfit Mattresses, says, “The MSME ministry is recognising the industry which is growing. But though there are various schemes and benefits provided by the government, people are not aware of it. They must start awareness programmes so that the MSMEs can avail the best of the benefits.”

The government has launched various funding schemes to boost MSME sector. There are schemes for women entrepreneurs as well as those who are willing to create their own identity. But the process needs to be tweaked, feel women entrepreneurs.

Kirti Agarwal, Founder, Krishna Industries, says, “It is difficult to get the benefit of MSME schemes as the processes involved are lengthy. Many schemes don’t have a proper and practical implementation.”

Bhavna Anand Sharma, Founder, Cureveda, feels that access to resources is easier for men because of reasons beyond schemes. She says, “There are many reasons such as networking extensions beyond work hours, male support groups, etc. Unfortunately, there are not many women in business, and neither is there enough support structures.”

Traditional small-scale enterprises want more attention from the government as they feel lost in an increasingly digitised world.

Vimal Prajapat from Ramnarayan Blue Art Pottery, says, “The MSME ministry must increase its training programmes as it helps the small-scale businesses gain reach and helps in funding.”

According to a study by FICCI, despite the sector’s strategic importance in overall industrialisation strategy and employment generation, as well as the opportunities that the Indian landscape presents, the MSME sector confronts several challenges.

Technological obsolescence and financing problems have been associated with the sector, as well as constraints such as high cost of credit, low access to new technology, poor adaptability to changing trends, lack of access to international markets, lack of skilled manpower, inadequate infrastructure facilities, including power, water, roads, etc., and regulatory issues related to taxation (state central), labour laws, environmental issues etc. are also linked with its growth process.

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