ISED Proposes 'Rights Based Approach' to Enterprise Development.

While, the vulnerability of small enterprises in India go up day by day, the need for safety mechanisms, driven both by the market, on the one hand, and public policy on the other, increases. However, both the market and the State respond to such vulnerabilities, in a disproportionately slow manner.

Unless, there is a 'rights-based' articulation of the needs of small enterprises, the response to serious vulnerabilities are likely to remain slow. Is 'enterprise' a right of the Indian citizen? The question posed by the India MSME Report 2014, (MSMER 2014) has triggered significant debates in academic and policy circles. Both internal and external shocks threaten the very existence of these enterprises.

Following the conceptualization of MSMER 2014, the latest issue of the Report, re-affirms the arguments with the support of a re-invigorated methodological kitty. While, India moves into a General Election, the Report for the year 2018 argues for a legislation to protect the interests of small and medium enterprises in the country.  The Report was released at the south India MSME conclave held at Banglore on January 16- 17.

MSMER-2017 Advocates Reform Package

India's micro small and medium enterprise sector (MSMEs), the country's largest employment provider next  to agriculture, needs focused attention and a reform package  for its very survival, says India MSME Report 2017.  The Report was released by the   Union Minister of State for External Affairs, Major General V.K.Singh,  at  the  'Global Economic Summit, 2018', held at the World Trade Center (WTC) ,Mumbai. The Summit was attended by business representatives, experts and policy makers from 20 countries.  The Maharashtra Minister for Employment and Tourism, Sri. Jayakumar Jithendra Singh Rawal and  the Orissa Minister for Micro Small and Medium Enterprises Shri . Prafulla Samal also offered felicitations.  The Summit was inaugurated by the Union Minister of Commerce and Industry Mr. Suresh Prabhu, through electronic message.  

As per the official statistics brought out by the Union Ministry of MSME, the Sector provides 80 million employment opportunities, with a GDP share of 8% and exports by 40%.While during periods of slow growth in the economy, this is a great relief, the more recent developments in Indian economy do not give adequate signals for the sector to perform its lubricating social role, says the ISED document.

Economists consider 'business confidence' as the centre-point of sustainable economic growth. Considering its huge size and coverage, MSME confidence matter a lot for the Indian economy to overcome its growth slow-down.The last two years were marked by significant rigidities in the MSME market, as also in entrepreneurial confidence, especially because of fiscal and financial constraints.  Such rigidities, however, were offset by some positive impacts, such as, enhanced formalization, and  a simplified tax structure through the GST.  However, such benefits have been further washed away by  the recent stories of scams in the public sector banks. While  'business  confidence' is  sine qua non for investment promotion and credit off-take, business analysts have often failed to  grasp and interpret  such confidence in the context  of India's MSMEs. Corrective steps  relating to analysis and policy is critical.

The Report proposes a detailed Six- point Reform Package, with the concept of 'Enterprise Security', as its focal point. Getting  a conducive environment  for starting and sustaining a business  need to be, not only an opportunity, but  right of every Indian citizen. Such right  need to be comprehensive , in relation to various facets of starting and running a business. ISED, through its document, "Micro, Small and Medium Enterprises in India: Towards Enterprise Security & a Medium- term Agenda(2019-19)", had come out with its articulation on  the eve of Lok Sabha Polls in 2014."The imperative today is much more", says the  MSME Report.

The latest issue of the India MSME  Report corresponds with the 'China Jubilee' year of the ISED Small Enterprise Observatory, and hence, covers the country's MSME experience over the past two decades. It will be deliberated and discussed in MSME Meets organised by the Institute, under the rubric, "India MSME Darshan" .