Micro Small and Medium Enterprises (MSMEs) are the prime drivers of India's economy contributing more than 29 per cent to the GDP and are responsible for 50 per cent of the country's total exports. To become a developed nation, it is crucial to build a strong MSME sector. Performing this role precisely is the MSME-Development & Facilitation Office (DFO). In this interaction with Rakesh Rao, Milind Barapatre, IEDS, Joint Director & Head of Office, MSME-DFO Mumbai, explains various pain-points of the industry and the role played by his organisation to facilitate the growth of MSMEs.

Can you tell us about your department and its role?
MSME Development & Facilitation Office (DFO), Mumbai, is the field office of Ministry of Micro, Small and Medium Enterprises. It is the nodal office of Office of Development Commissioner, MSME, New Delhi. MSME-DFO Mumbai implements policies, programmes and schemes of Ministry of MSME for the promotion and development of MSMEs in the state of Maharashtra.

Our core mission is to provide technical and managerial support to entrepreneurs. We guide them through every step of their journey, from starting a venture to navigating business operations. We offer assistance with everything from sourcing raw materials to marketing their products. We conduct training programs and workshops to equip entrepreneurs with the necessary skills, ultimately promoting a thriving MSME ecosystem.

The organisation's name was changed from “Development Institute” to “Development & Facilitation Office”. Why the shift?
Previously, our focus was primarily on knowledge dissemination. Now, we take a more proactive approach, actively facilitating entrepreneurs in overcoming hurdles. We connect them with various programs like capacity building initiatives, certification schemes, and public procurement opportunities. We also address issues like delayed payments and high-interest rates. This broader scope is reflected in the updated name.

The government has shared its Viksit Bharat 2047 vision. How important are micro, small and medium enterprises (MSMEs) to achieve the objectives of this vision?
'Viksit Bharat 2047' is the government's roadmap to making India a completely developed nation by 2047. The MSME sector is an important pillar of Indian economy as it contributes greatly to growth of Indian economy with a vast network of around 30 million units, creating employment of about 70 million, manufacturing more than 6,000 products, contributing about 45 per cent to manufacturing output and about 40 per cent of exports, directly and indirectly. The growth and sustainability of this sector is very crucial for meeting the objective of Viksit Bharat.

How is your organisation contributing to the vision of Viksit Bharat?
The maximum number of MSMEs we can connect with and offer benefits despite the existing hurdles is one of our aims. Basically, the motive is to make MSMEs aware of the GOI schemes so that they can avail them. Some examples include; reimbursements schemes, training programmes and more. Sectors like food, defence, solar or EV, medicines and drugs are some of our priority sectors. We are committed to helping them improve in various areas.

As the head of MSME-DFO, Mumbai, what are your priorities at present?
MSME-DFO Mumbai has been actively working for promotion of MSME sector in the state of Maharashtra. We have been closely working with stakeholders of MSME sector such as Industries Department, Government of Maharashtra, MSMEs, MSME associations, banks & financial institutions and others for promotion of MSME sector. At present, we are keenly focussing on the PM Vishwakarma Scheme, the ambitious scheme of Government of India for the traditional artisans. We are also organising awareness programmes, workshops, skill development programmes for prospective entrepreneurs to support them to start their own ventures. Besides, we are helping MSMEs gain new markets through our Procurement and Marketing Scheme (PMS).

What are the pain-points of MSMEs? How is MSME-DFO assisting them in overcoming these challenges and fostering the growth of MSMEs?
Due to lack of budget, MSMEs face problem in accessing new markets and creating their brandings. Through schemes like Procurement & Marketing Scheme, we encourage MSMEs to participate in exhibitions at national level, and participation in these exhibitions are reimbursable. We provide new market access to MSME sector by conducting vendor development programmes in association with central public sector undertakings (CPSUs). Support is also provided to MSMEs for obtaining trademarks, intellectual property rights (IPR), etc.

MSMEs often face the issue of access to credit/finance. How is your office helping MSMEs in solving this issue?
Access to credit/finance is one of the pain areas, and we are trying to solve this issue by:
Promoting schemes such as MUDRA, PMEGP through awareness programmes, events and training programmes Representing MSME sector in State Level Bankers’ Committee (SLBC) & RBI’s Empowered Committee Meetings and raising the issues relating to access to credit Coordinating with CGTMSE to promoting collateral free loans.

What kinds of assistance do you provide to MSMEs for exports?
We collaborate with Export Promotion Councils to educate MSMEs about international markets and customer identification. We offer reimbursements for registration fees, product insurance, and participation in international trade exhibitions. We also provide business-to-business support and cover travel and stall setup costs for delegations attending international events.

To remain competitive, MSMEs have to adopt modern technologies. Do MSME-DFOs offer any assistance to companies in their modernisation efforts?
We provide support to MSMEs through reimbursements for patents under IPRs. Our Ministry conducts MSME Idea Hackathon with the aim to invite ideas for adoption of new technologies. The Ministry support incubation centers under MSME Innovative Scheme.

Quality has emerged as one of the key differentiating factors, especially for exports. How can MSMEs raise their quality and productivity standards with the help of MSME-DFOs?
We work with agencies that promote quality, productivity and standards such as Bureau of Indian Standards (BIS), National Productivity Council, etc. We implement MSME Competitive Lean Scheme which aims to improve quality, productivity, performance and capability to change the mind-sets of manufacturers and transform them into world class manufacturers. In addition, we implement Zero Defect Zero Effect (ZeD) scheme which encourages and enables MSMEs for manufacturing of quality products using latest technology, tools & to constantly upgrade their processes for achievement of high quality and productivity with the least effect on the environment.

Finally, in an ever-evolving marketplace, how is MSME-DFO, Mumbai, gearing up to fulfill the needs of aspiring MSMEs?
We are planning to provide MSMEs better support services through techno managerial consultancy provided by our technical officers. We are also working closely with prominent MSME industry associations to gauge the aspirations of MSMEs. We are also coming up with a state-of-the-art multipurpose exhibition cum convention center in our premises to address the longstanding demand of MSMEs to provide them with exhibition space at affordable rates.

Looking ahead, what are your expectations for the MSME sector in India?
We are optimistic about the future of MSMEs. With increasing government support, greater access to technology, and a growing focus on innovation, MSMEs are poised to play an even more significant role in India's economic growth. We see a future where MSMEs are not just job creators but also lead the way in developing cutting-edge technologies and sustainable practices.

Is there anything else you would like to share with our readers, particularly aspiring entrepreneurs?
Our office offers immense potential for MSMEs with ambition and good business ideas. MSMEs can leverage the resources available, attend training programs, and connect with the government for guidance to improve their business prospects and growth.