The Institute of Cost Accountants of India (ICAI) and the apex industry body, ASSOCHAM, have joined hands to help create and support first generation entrepreneurs and medium and small start-ups to make Indian MSMEs innovative, cost and technology savvy to make these enterprises globally competitive to grow to their full potential.
As a first step towards this objective, the ICAI and ASSOCHAM have decided to set up the country's maiden visual centre for development of MSMEs having reach across industry.
A joint vision document by the two professional bodies said the centre aims to address the issues concerning the MSME sector, connect Indian enterprises to global R and D centres, strengthen industry-academia interface, spruce up skill levels and connect the industry with important stakeholders, including the government, through interactive seminars and workshops.
The vision document further stressed that ICAI and ASSOCHAM will work together to reach out to nearly 30 million MSMEs across the country and educate entrepreneurs on exports and the global market and the potential they hold for the domestic manufacturers.
"We see a great opportunity for the MSME sector to grow as an industrial force to reckon with. Globally, MSMEs are regarded as a backbone of economy and driver of industrial growth. The government's Make-in-India mission and support and incentives offered to the sector, if properly realized, provide the right atmosphere for the industry to exploit its full potential," said ICAI president, CMA Dr. A.S. Durga Prasad.
MSMEs in India have witnessed exponential growth over the last decade. The latest available reports show that the country has over 48 million SMEs, accounting for more than 45 per cent of India's industrial output and 40 per cent of total exports apart from creating 1.3 million jobs every year.
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Yet, the sector continues to struggle on several accounts and is often challenged by credit and finance related issues and constraints, and less friendly regulatory environments
Despite the slow pace of overall industrial growth, the Indian MSMEs grew at a stable pace of 4.5 percent in the last five years amidst difficulties in raising funds and dealing with other challenges.
According to a recent World Bank report, India has slipped three ranks in its Ease of Doing Business Index. However, the new government's policies and initiatives to tap the full business potential of the country is a shot in the arm for the industry and entrepreneurs.
"ICAI is happy to work with the government and industry to help make India's development dreams come true," the ICAI president added.