India Celebrates MSME Day, Focusing Business Continuity During COVID-19 Outbreak
MSMEs are the growth accelerators of the Indian economy. As per a recent study, the MSME sector provides employment to over 114 million people and contributes to more than 30% of the country’s GDP. However, this sector has been adversely impacted due to COVID-19 and the new normal. It is important for MSMEs to function seamlessly even in such situations. By leveraging the potential of cloud and new-age technologies, MSMEs can accelerate business development, manage operations effortlessly and engage customers better. In the process, they can drive growth and profitability while ensuring highest levels of security and cost-efficiency.
India’s MSME companies are bringing in path breaking innovations that contribute towards economic development of the country. The government in May 2020 announced a slew of measures such as an INR 50,000 crore equity infusion, an INR 20,000 crore subordinate debt for stressed MSMEs and an upward revision of the turnover limit to provide fuel for growth to the MSME sector. As we observe MSME Day on 27th June, we need to recognize the contribution made by this sector towards the country’s development while continuing to provide them ample opportunities for further growth and expansion.”
As a sector that accounts for two thirds of the job opportunities in the country, it is safe to say that Micro, small and medium-sized enterprises (MSMEs) are the backbone of our nation’s economic structure. Over the last five decades, the sector has earned its place for being highly dynamic, vibrant, and a significant contributor to the Indian Economy in terms of Gross Domestic Product (GDP), by placing India on a global map by way of exports.
When the pandemic struck, MSMEs were among the worst affected, however, for the country to bounce back to normalcy, it was imperative for the Government to step in. With an aim to handhold the MSME sector, they announced a slew of measures in May 2020, which included providing relief through emergency working capital, the creation of a dedicated fund with an INR 10,000-crore corpus, among other initiatives. This is a welcome move by the Government of India, and will definitely provide a much needed booster shot to the sector. The government can also do more to build the indigenous MSME ecosystem by focusing on supporting R&D and innovation and in addition to manufacturing.
MSMEs contribute 45% of overall export and the MSMEs remain more enthusiastic about technology adoption than ever, and technology providers can be key players in helping this sector become more efficient and grow faster. While the adoption of online services is relatively on the higher side, the adoption of applications that can greatly help improve business efficiency and effectiveness has been disappointing. If technology providers recognise the reality of the MSMEs that we serve, there is a strong possibility to increase the adoption rate of these applications.
Overall, MSMEs remain more enthusiastic about technology adoption than ever, and by keeping the above in mind, technology providers can be key players in helping MSMEs become more efficient and grow faster.
This has been observed that, the cloud services cloud help the MSME to grow further to keep the business moving, which has traditionally been a greater challenge for MSME to transform their business to the cloud.
Last but not the least, on the occasion of MSME day, I would urge all MSMEs to harness the power of new-age technologies and make technology an integral part of their growth charter, if they haven’t done it already.
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