Inclusive Growth Mandates Focus on MSMEs

INDIA AS THE FIFTH largest economy has two major issues to focus on in the Union Budget for the 2023-24 financial year, namely, inclusive growth and sustainable quality employment for its young population under the age of 35, who constitute 65 per cent of the total population

- Aruna Sharma

This budget needs to clearly lay down principles that could equip young India to take advantage of the growth story during this decade and be gainfully employed. Otherwise they will be laggards and a liability, adding to the issues related to inclusive growth like poverty, malnutrition, hunger index, stunting etc.

To achieve the goal of a $5 trillion economy (having missed the first target of 2022) there is no other option but to focus on the 63 million MSMEs, of which 99 per cent are micro enterprises. Small and medium enterprises constitute about 0.52 per cent and 0.1 per cent of MSMEs respectively. They contribute 30 per cent to the GDP and most importantly, employ 111 million individuals in their workforce. Thus, an assured path to accelerate the pace of achieving the $5 trillion economy goal lies in the growth of small and medium enterprises (SMEs) and micro, small and medium enterprises (MSMEs). That will enable the dual goal of not just accelerating growth but ensuring that ‘no one is left behind’ in the success story. This budget should not miss addressing the concerns of section.

The first challenge is to get the micro, small and medium enterprises registered. Currently, 13.5 million units are registered on the Udyam portal. The budget needs to provide a mechanism for linking the urban data base of street vendors and shops to enable faster registration and better targeting of these enterprises. This repository will enable understanding the specific needs and issues of this group and coverage of schemes for their better skilling, exposure and adoption of new technologies, credit access and enable them to expand their markets by resorting to standardisation and immediate market feedback mechanisms.