ET PolymersJune - July 2020
The outbreak of COVID-19 pandemic has drastically changed the global economic landscape. World Trade Organisation estimates that global merchandise trade will reduce by 13 percent to 32 percent in 2020 due to COVID-19 pandemic. This global phenomenon is going to make countries think about strengthening their local supply chains.
With this backdrop, India has already announced its vision of ‘Atmanirbhar Bharat’ - A Self-Reliant India which will push for strengthening local industries and give them a boost to compete at a global stage.
The latest report by Nomura Research Institute (NRI) Consulting & Solutions India endorses this view by stating that MSMEs can play a significant role in achieving this vision, however, a lot more needs to be done for MSMEs to become a growth driver for India. Three key parameters for the success of MSMEs are Financial Stability, Availability of Skilled Labour in MSME clusters, and Market Competitiveness of their products to both achieve import substitution as well as exports.
The report identifies some of the key areas that need to be focused:
1) Capability of Supply
It is essential to improve the capability of Indian MSMEs to supply quality products especially with new norms of operations being introduced due to COVID 19. Maintaining social distancing, running on reduced capacity, etc. would further aggravate the situation for the cash stripped MSMEs. Hence, it is imperative to provide immediate support for ensuring they keep up their capability of supply.
2) Capability of demand
Indian MSMEs need to be adaptable with changing market trends. Recent global developments have also reduced the planning horizons in global supply chains making it crucial for the sector to be able to adapt to a variable demand scenario.
Ensuring capacity and availability of raw materials is also crucial. The disruption in global logistics has broken the chain for some key raw materials.
4) Cost competitiveness
You can read up to 3 premium stories before you subscribe to Magzter GOLD
Log in, if you are already a subscriber
Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines
READ THE ENTIRE ISSUE
June - July 2020