Over the past two years, multiple projects and initiatives have been launched by the Government of India which can prove beneficial for many sectors. These projects will be beneficial to the business sector and mostly importantly to MSMEs in India.
- Smart Cities Mission: Smart Cities Mission is an urban renewal program by the Government of India with a mission to develop 100 cities all over the country making them citizen friendly and sustainable. The initiative was launched by Prime Minister Narendra Modi in June 2015. The initiative is likely to be a boon for Indian SMEs. Building smart cities is just not the responsible of the government. SMEs will have to play a key role in this process.
Any smart city requires both physical and digital infrastructure. So SMEs that offer these services should look at this as an opportunity and draw immense value form it. SMEs in sectors such as healthcare, waste management, buildings and energy should leverage this opportunity. It is only MSMEs that can create lot of innovations to manage a city’s infrastructure. In the process of creating more ‘live-able’ cities, SMEs will make more profits. This will also contribute to employment generation and growth in GDP.
- Start-up India: On 16th January 2016, Prime Minster Narendra Modi announced a bunch of benefits and schemes to promote start-up ecosystem in India. The event was called ‘Start-up India’. It is a flagship initiative by the Government of India that intends to build a strong ecosystem for nurturing innovation and start-ups in the country. This drive will generate sustainable growth and generate large-scale employment opportunities.
With this initiative, MSMEs are likely to benefit. This will accelerate spreading of start-up movement from digital/technology sector to agriculture, manufacturing, social sector, healthcare and education sector. MSMEs will benefit from 80% reduction in registration fee, freedom from capital gain tax for 3 years, single window clearance even with the help of mobile application and many more.
- Stand-up India: Stand-up India is an initiative launched by Prime Minister Narendra Modi on 5th April 2016. The initiative supports entrepreneurship among women and SC & ST communities. The initiative is likely to benefit 2.5 lakh MSMEs.
The scheme envisages extending bank loans between Rs.10 lakh and Rs.1 crore for setting up Greenfield enterprises by SC/ST and women entrepreneurs. The scheme has already been implemented through all scheduled commercial banks. The enterprises covered under the scheme may be manufacturing, services or trading sector.
- Make in India: The ‘Make in India’ initiative was launched by Prime Minister Narendra Modi on 25 September 2014 to encourage multinational, as well as national companies to manufacture their products in India. The initiative will benefit the country’s small and medium enterprises as they provide a robust supply chain for foreign investors. MSMEs will attract foreign MNCs to bring in their investment and marketing networks to initiate faster growth.
Therefore, with the above initiatives, we can hope for a sustainable ecosystem for the MSMEs in India.