Indian micro, small and medium enterprises (MSMEs), which employ about 80 million people, are yet to make a dent on the global industrial map.
This is largely because of the difficulty that Indian MSMEs face in establishing contacts with global players, says a FICCI-Grant Thornton survey on ‘Integrating MSMEs with the Global Value Chain’.
The sector contributes 36 per cent to the total value of the country’s exports.
The survey of over 100 MSMEs across the country has called for a greater role for Government and industry organisations to help MSMEs in enhancing their global presence as also removing glitches such regulatory compliance and availability of finance.
Only 31 per cent MSME respondents admitted that the Government was playing a key role in enhancing their business competitiveness.
According to the survey, almost 90 per cent of the respondents were looking to expand their business, while only 39 per cent said they were exporting to other countries or had operations in other countries.
The survey highlights the vast potential that Indian MSMEs have to integrate into the global value chain. Indian industry at large has been able to invest in the right channels like distribution networks, product development through research and development and new technologies to be able to exploit opportunities offered by the global value chain, the survey said.
The FICCI- Grant Thornton report will be unveiled at the FICCI MSME Summit 2013 here on Tuesday.
aditi.n@thehindu.co.in