MSMEs need to integrate with global value chain: P.C. Sarangi

Saturday, June 26, 2021

New Delhi, 26th June 2021:
The integration of micro, small and medium enterprises (MSME) is critical for the financial viability of Global Value Chains (GVCs), stated Shri Pratap Chandra Sarangi, Hon Minister of State Animal Husbandry, Dairying and Fisheries and Micro, Small and Medium Enterprises, Government of India at an E-Conference on “Enabling the MSMEs for Global Value Chains”, on the occasion of International MSME Day organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
 
Speaking at the event, Shri Sarangi stated that not only do MSMEs provide a low-cost way of operations but also with their geographical reach and innovation capabilities, MSMEs form the cornerstone for fostering global economic growth.
 
“However, as Global Value Chains (GVCs) grow and the value addition capabilities of MSMEs increase, mechanisms would have to be formed to enable those MSMEs to be able to form their own value chains without fear of competition,” the minister stated.
 
He stated that in the process of integration to global value chain, MSMEs face many challenges therefore efforts must be made to strengthen MSME sector locally to enable their penetration and reach globally.
 
Shri Sarangi revealed that the role and potential of Indian MSMEs along with the need to improve their efficiency, productivity and quality needs to be viewed in the context of a globally competitive landscape.
 
“With the Government increasing opportunities for local MSMEs and reducing dependence on imports, Indian MSMEs will be able to scale up operations and gain higher market share across the various sector,” he added.
 
He stated that the Ministry of MSME is taking steps towards making these enterprises global and improve the overall business environment, by making it more conducive and transparent for all stakeholders.
 
“Private sector engagement in various bottlenecks of value chain and supply chain system is critical for success of various policies announced by the government,” he said.
 
Shri Sarangi explained that while the Government works on creating a level-playing field for the Indian MSMEs, these players will have to embrace technology and focus on value addition to enhance competitiveness in the global arena.
 
“The global economy is set to undergo massive changes post the coronavirus shock and provides India with a lifetime opportunity to strengthen its manufacturing prowess and position itself as a critical hub in global value chains,” He pointed out.
 
Smt Alka Nangia Arora, Joint Secretary- Ministry of MSME, Government of India stated that it is believed that Micro, Small, and Medium-sized Enterprises (MSMEs) are the first responders to societal needs.
 
“This type of enterprise has been found to be a major driver of poverty alleviation and development, helping to generate jobs and generate income across the globe,” he said.
 
She stated that for adequately exploiting the potential of the MSME sector on an increasing scale in the future there is a need to target the international market on a much larger scale than what is being done currently.
 
“For emerging economies like India, if one has to make a mark on the global production network similar to other emerging economies, it is necessary to enable domestic forms viewing MSMEs to penetrate and link with the Global Value Chains on an increasing scale,” She explained.
 
The other dignitaries who were present on the occasion were Shri Sudatta Mandal, Deputy Managing Director, Small Industries Development Bank of India (SlDBl), Shri Ashutosh Chadha, Vice President & Head-Public Policy & Government Affairs-South Asia, Mastercard, Shri Abhishek Agarwal, President–Judge India & Global Delivery, The Judge Group,  Shri Paresh Shetty, President – Sales Cloud4C Services Ltd., Shri Anand Tandon, Founder and CEO, Myforexeye, Shri Umesh Balani, Chairman, ASSOCHAM MSME Development Council & MD and CEO, Rotomag Motors and Controls Pvt Ltd, Shri Vijay Sharma, Chairman, ASSOCHAM Haryana State Development Council & Director, Jindal Stainless, and Shri Sushil Kumar Sarawgi, Co-Chairman, ASSOCHAM MSME Development Council & Managing Director, KOR Energy (India) Pvt. Ltd.
 
 
About ASSOCHAM:
ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
 
For further details, please contact:
 
Manju Negi  
AVDHESH SHARMA         
ASSOCHAM
ASSOCHAM
#+919810910911
#+918527639419
 
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