WILL THE UPCOMING G20 SUMMIT COME BEARING GOOD NEWS FOR THE MSME SECTOR?

The article pans into the benefits that Indian MSMEs stand to derive from the ongoing G20 Presidency.

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The contribution of micro, small, and medium enterprises (MSMEs) to India's economic growth is well-documented. A report by consultancy KPMG and industry body the Confederation of Indian Industry said the entities account for nearly 30 percent of India's gross domestic product and 45 percent of its exports.

MSMEs also play a vital role in socio-economic development, such as job generation (at 110 million), reducing inequalities, rectifying regional imbalances, and providing low-cost raw materials to support large industries and allied sectors.

The progress of less-developed regions and bridging the rural-urban divide depends on the robust health of the micro, small, and medium enterprises industries.

WHAT IS THE G20?

The Group of Twenty (G20) is an inter-governmental forum comprising 19 countries, which includes Argentina, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Turkey, United Kingdom, United States, and the European Union.

The G20 members represent around 85 percent of the global Gross domestic product (GDP), over 75 percent of the global trade, and about two-thirds of the world population. It was founded in 1999 after the Asian financial crisis as a forum for finance ministers and Central Bank Governors to discuss global economic and financial issues. G20 was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007. Then in 2009, it was designated the "Premier Forum for International Economic Cooperation".

WHAT CAN THE G20 OFFER?