India houses over 63 million MSMEs, employing over 12 crore people countrywide. It also contributes around one-third of the GDP and almost half the exports. Founder of PinCap, Praveen Sinha said that the revival of MSMEs can help to reduce rural unemployment. He also said that pandemic-induced disruptions are a great opportunity for the MSME sector to become a part of the global supply chain.
The government has been supporting the sector through various ways that include establishing new funds such as the “Ubharte Sitaare Fund.” The fund was recently launched by Finance Minister Nirmala Sitharaman. During the event, she said, “In the last two years, the Centre has done several different things. The government has changed the definition of MSME in a very flexible manner. Recently, a bill was tabled in the Parliament through which the MSME sector will directly benefit.”
“The continuous support of the government for the MSME sector must be appreciated. The sector is getting all the attention and support that was due for the past many decades. It is now time for the revival of the sector and the focus should be to take our products around the world. Moreover, the new manufacturing units must be installed in rural villages. I call it “From villages to the world” and I believe only MSMEs has the potential to do it,” says Praveen Sinha.
“MSMEs are not only the backbone of Indian economy but also the nerve of this country. Our country flourished before the arrival of the British due to these MSMEs that were present across towns and villages. Now, the expansion of MSMEs to rural areas is the only viable solution to the problem of youth unemployment. Moreover, it will help the government to earn enhanced revenues for carrying out its social programs,” he adds.
The government has been running various schemes to incentivize manufacturing in rural areas such as the Gramin Udyog Yojana (VKGUY) and Market Linked Focus Product Scheme (MLFPS). Atmanirbhar Bharat is yet another landmark policy that is helping the MSMEs to focus on exports. The policy has helped the MSMEs in rural areas to take a quantum leap and enter the global market of exports.
Praveen Sinha believes that rural India is the core of the nation. “Rural India is the heart of the nation and it also has a lot of potentials. We are dedicated to supporting MSMEs based in peripheries. We have done this before and we will continue to do this in the future as well. The government is already doing a lot and it is time that corporates now take the lead to help rural areas unleash its true potential.”