MANGUIRISH PAI RAIKER speaks on the role of MSMEs in helping revive India’s struggling economy
MSMEs have a great role to play in reviving the economy. It has the capacity and ability to bounce back. I am sure that the next-gen entrepreneurs will stand up to the challenge and be winners.
We are all coming out of the covid crisis, having faced two waves; which have totally crippled the working pattern and the economy is downhill. The waves came like thunderbolts which nobody was prepared for. Initially the lockdown and then the curfew putting conditions on the operations of the businesses, made working difficult for the MSME units. Closure of malls, supercentres, non operations of the hospitality and hotels drained the orders of MSME sector putting them in jeopardy. Some of the units had to either close down or change their product line. Most of them capitalised by changing over to health related products or components and managed to stay afloat.
During this difficult time, inspite of hardships faced by them, this sector has worked diligently to meet the demands especially from the health sector. There were problems of raw material sourcing, logistic difficulties, labour shortages besides maintaining stringent SOPs related to COVID management. Inspite of this, MSMEs rose to the occasion and showed its inherent resilient nature to overcome the difficulties and came out trumps. Not all could manage this. Some, sadly, perished in the process.
It is now time for this sector to plan for the future and gear up to face the challenges. This is the time to go for new innovative products and processes. We can make ‘Atmanirbhar Bharat’ by producing products and services required in the country. This will help restrict imports. Currently, more than three thousand products are imported from neighbouring countries, which can be easily manufactured in our own country. There are lots of opportunities waiting for our entrepreneurs, which they should identify and take benefit. Government has eased the registration processes, banks have come out with easy funding options, markets are opening, and all in all, the time is suitable for taking a leap forward.
During the pandemic, when we were compelled to remain behind closed doors, realisation hit us hard regarding the importance of food. It was thanks to the farmers that we could get our feed. At the same time the importance of food processing industry also come to the fore. In fact many ventured into the ready-to-use food production. Packaging also played a very important part as it helped to maintain freshness and safeguard hygiene. It is said that necessities bring out opportunities. There were lots of opportunities even during the pandemic, which some businesses capitalised on. There were plenty of issues in carrying out regular business and as such many thought of time related business opportunities and also succeeded. The adaptability to change is the biggest asset. Need based quick thinking and getting on with it is another thing. One of the most important attribute is self confidence. Now as the second wave is receding, it is time to put the right foot forward and clinch the winning post. Revival is definitely there, but we need to be part of it. The service sector has always been India’s key sector. India is way ahead in this area with innovation, information technology and with young and energetic trained and skilled workforce. We can again have a headstart in this sector.
There is another area where we can take the lead; with the help of our demographic profile. There are lots of sectors which require to be manned in various parts of the world. Due to the devastation caused by the pandemic all over the world, there has been a dearth of trained manpower to look after the infrastructure, utility services and even key areas of operations. It is time to get into action and put your managerial skills to work and utilise the young energetic skilled workforce and look out for these global opportunities.
The future of manufacturing will definitely be in India. The Government has big plans for it and has already planned import substitute zones for setting up industries to cater to the local as well as global needs. They have even incentivised innovative and key products manufacturing companies. Various agencies are foraying into the Indian markets to source their requirements. MSMEs can form manufacturing clusters of similar products with total quality management and rigid cost control to be globally acceptable and competitive. It is time we take this initiative and be the supplier to the world. We have to take up the challenge to meet the needs of the country as well as meet global demands. We take up import substitute product manufacturing, meet the quality, be cost effective and show our prowess to the world. This will enable us to progress and also take our country up the ladder of development and help achieve a 5$ trillion economy.
The author is an industrialist and Chairman of the MSME Council of ASSOCHAM. He is the former president of Goa Chamber of Commerce & Industry.
