New Delhi
The Indian government is working to improve credit access for micro, small and medium enterprises (MSMEs) while pushing for better use of technology to enhance growth. Rajneesh, Additional Secretary and Development Commissioner in the MSME Ministry, shared these views at the CII Annual General Meeting on Friday.
He said India, now the world’s fourth-largest economy, is expected to become the third-largest soon. Highlighting the resilience of MSMEs, he noted that they bounced back quickly after the COVID-19 crisis and currently provide employment to 27 crore people. He added, “We want to increase credit availability. The Budget has proposed credit cards for micro enterprises.”
According to RBI data, MSME non-performing assets (NPAs) stayed below 5% over the past five years, showing their strong repayment record.
Rajneesh also pointed out that technology can help MSMEs balance environmental concerns with business growth. Sunil Mathur, CEO of Siemens India, said India’s average productivity is 75%, compared to 90% in Europe, and technology can help bridge this gap.
Shreekant Somany of Somany Ceramics highlighted how digitisation lowers costs and boosts efficiency. He urged better MSME rating systems for easier financial access. Deepak Jain of Lumax Group called MSMEs the backbone of Indian entrepreneurship and emphasized creating a supportive ecosystem.
He said supporting MSMEs should be part of a national strategy, adding, “Today, ecosystems compete globally—like China’s. India must compete the same way.”
Industry leaders also called for reduced compliance burdens and innovation hubs to help MSMEs meet global standards.