World MSME Day: Remembering India's Dynamic Sector And Growth Enabler

World MSME Day is observed every year on 27 June globally to highlight the significance of micro, small and medium-sized enterprises that play a crucial role in the country’s economy. 

This year, MSME Day will mark its sixth anniversary. It was started in 2017 by the United Nations General Assembly (UNGA), considering the urgent recognition of the MSMEs' role in development across the world.

According to UNGA, MSMEs account for 90 per cent of businesses, 60 to 70 per cent of employment and 50 per cent of gross domestic product (GDP) worldwide. Representing the backbone of any country they contribute to the local and national economies of every nation.

The MSMEs are thus responsible for sustaining livelihoods, in particular among the working poor, women, youth, and groups in vulnerable situations, the UNGA added.

This year, the event is focused on galvanizing MSMEs worldwide by supporting women and youth entrepreneurship and resilient supply chains. India also celebrates World MSME Day but also has a day dedicated to its small-scale industries called the 'National Small Industry Day,' which is observed annually on 30 August, appreciating the small businesses and their contribution to the Indian economy.

Notably, the reports suggest that Indian MSMEs contributed 26.83 per cent to the gross value added (GVA), GDP recorded in the financial year 2020–2021, and so while gearing up for the celebration of World MSME Day, 2023 it is imperative to recognise the crucial role that MSMEs continue to play in strengthening the economy of India, shared Suchit Subhas, Director, Amazon Business.

He emphasised that MSMEs in the country have the potential to dominate the market and make an impactful position in the global footprint, provided they are given the right opportunities to innovate. This day is a yearly reminder to everyone, including us, to create the appropriate business climate that can help small businesses to grow and thrive, Subhas added.

On similar lines, Shiva Kumar Y, Managing Director, Commercial and SMB, Cisco India and SAARC said, “As India embarks on an era of rapid digitisation, fuelled by the convergence of technological advancements, increased broadband penetration and the government's focus on digital infrastructure, MSMEs are positioned to play a critical role in powering the country's next phase of growth."

He stressed that a report by IDC forecasts a 20 per cent increase in IT investment and connectivity service budgets for Indian small and medium-sized enterprises by 2027. A prediction that Cisco recognises as ‘small is a new big’ and is accordingly concentrating on celebrating World MSME Day by uniting and forging partnerships that empower small and medium enterprises to become catalysts for India's growth in the technology decade.

Joining in on the conversation embracing World MSME Day, Rakesh Krishnan, Vice President and Head of Marketplace, Flipkart, said, “Together we can celebrate the resilience, innovation, and economic empowerment fostered by MSMEs. Today, more than 11 lakh sellers have chosen to establish their online presence to be with the marketplace and get benefitted through various offerings on ecommerce."

Jayati Singh, Chief Marketing Officer, Tally Solutions, said that MSME Day serves as a reminder to acknowledge the significance of MSMEs, promoting inclusive development, supporting policy discussions, fostering knowledge exchange, and raisin awareness. The observance of MSME Day contributes to creating a conducive environment that empowers small businesses to grow and succeed in a technology-driven world, Singh added.

Meanwhile, Sanjeev Kumar, Co-founder, Executive Director and CEO, Spice Money, put the spotlight on the recent report by the Reserve Bank of India (RBI) that highlighted that the MSME sector is projected to exceed pre-Covid levels by 25 per cent in 2023–2024, showcasing its significant contribution to the nation's economic recovery.

On the contrary, Shruti Jain, CSO, Arihant Capital said that a majority of MSMEs do not prioritise and invest in employee training and skill development, nor do they have sufficient resources for the same. Since the MSME sector offers significant job and income opportunities for women and people from marginalised communities, providing this sector with better opportunities will not only access growth but would also help to uplift its employees from poverty, Jain added.

Moreover, the Kirana (grocery) stores in the MSME industry are also fostering innovation and entrepreneurship in the sector, playing a crucial role as the primary food and essential household product suppliers said, Karthik Venkateswaran, Co-founder and CEO of Jumbotail, expressing optimism towards the MSMEs of the food and grocery sector that are getting modernised with digitalisation, contributing to the growth story of India.