India MSME Report 2017 brought out by the Institute of Small Enterprises and Development has emphasised the need for focussed attention on the MSME sector.
The report was released by the Union Minister of State for External Affairs VK Singh at the Global Economic Summit 2018 held in Mumbai.
80 million jobs
Quoting official figures, the ISED document pointed out that MSME sector provides 80 million job opportunities. Given the slowdown in the economy, the sector’s performance is impressive. Economists consider ‘business confidence’ as the centre point of sustainable economic growth. Considering its huge size and coverage, the MSME confidence matters a lot for the Indian economy to overcome its growth slowdown.
The last two years were marked by significant rigidities in the MSME market, as also in entrepreneurial confidence, especially because of fiscal and financial constraints. Such rigidities were offset by some positive impacts like enhanced formalisation, and a simplified tax structure through GST.
However, such benefits have been offset by the recent reports of scams in public sector banks, said ISED Director PM Mathew.
6-point reform package
The report also proposes a six-point reform package, with the concept of ‘Enterprise Security’, as its focal point. Getting a conducive environment for starting and sustaining a business need to be not only an opportunity but right of every citizen, it said. Such rights need to be comprehensive, in relation to various facets of starting and running a business.