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G20 commits to boost MSME Sector: Eased regulations, access to capital
Industry News- Oct 04,23
The New Delhi Declaration, adopted recently, recognises startups and Micro, Small, and Medium Enterprises (MSMEs) as natural drivers of growth, essential for driving innovation and employment.
Experts emphasise that the G20 nations, during India's presidency, have highlighted the importance of bolstering the MSME sector by simplifying regulations and improving their access to affordable capital. The commitments outlined in the G20's New Delhi declaration regarding MSMEs should be diligently followed by member nations, as this sector holds significant potential for job creation and sustained economic growth.
The New Delhi Declaration, adopted recently, recognises startups and Micro, Small, and Medium Enterprises (MSMEs) as natural drivers of growth, essential for driving innovation and employment. The establishment and continuity of the Start-up 20 Engagement Group under India's G20 Presidency were welcomed in the declaration.
Puneet Kaura, Chairman of CII Delhi State Council and MD/CEO of Samtel Avionics Limited, stressed the global significance of the MSME sector. He emphasised that the promises made by the G20 should translate into tangible actions, considering the sector's potential to generate quality employment and boost exports, which have been affected by global challenges.
To further support startups and MSMEs, Bhagyashree Bhansali, CEO of The Disposal Company, suggested simplifying regulatory processes, enhancing access to affordable capital, fostering collaborations between industry and academia for innovation, and providing targeted skill development programs. Developing strong incubation and mentorship ecosystems would nurture entrepreneurship and innovation in India.
The G20 Declaration also acknowledged the challenges faced by MSMEs, especially in developing countries, in accessing information. It welcomed the Jaipur Call for Action, aiming to enhance MSMEs' access to information and integrate them into international trade.
Deepak Bhardwaj, co-founder of IoTechWorld Avigation, highlighted the challenges MSMEs face in obtaining timely and adequate financing. He advocated for clear and uniform criteria in financing schemes, along with technology sharing and special export incentives, to boost MSME exports.
In the electric vehicle sector, Ayush Lohia, CEO of Lohia Auto Industries, emphasised the vital role played by startups and MSMEs in driving innovation and sustainability. Simplifying regulations, providing financing options, and promoting skill development are crucial to accelerating growth in this sector.
Sanjay Sharma, MD/CEO of Aye Finance, emphasised the indispensable role of startups and MSMEs in India's economy, contributing significantly to GDP, employment, and exports. He highlighted the importance of digitisation and suggested implementing digital literacy programs to facilitate the transition of MSMEs to digital operations, leading to improved financial performance.
The New Delhi Declaration endorsed the G20 2023 Financial Inclusion Action Plan (FIAP), providing a roadmap for rapidly accelerating financial inclusion for individuals and MSMEs in G20 countries and beyond. According to the latest data from the Reserve Bank, the outstanding credit to 'micro and small' industries was Rs 6.13 lakh crore, and Rs 2.54 lakh crore to 'medium' enterprises as of end-July 2023.
Source: Business Standard
G20
MSME Sector
New Delhi Declaration
India's G20 Presidency
Financial Inclusion Action Plan
Sanjay Sharma
Ayush Lohia
Lohia Auto Industries
Aye Finance
Deepak Bhardwaj
IoTechWorld Avigation
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