Discussion on MSME-centric policies, its varied needs and long-term sustenance

While there have been some noteworthy policy changes by the government aimed at the micro, small and medium enterprises (MSME), the same needs to be more robust by filling implementation gaps and considering the varied needs of the sector. This was the outcome of the recently held Smart Business panel discussion by Business Standard in collaboration with Hyderabad Management Association (HMA).

Among the panellists were Mr D Chandra Sekhar, Additional Industrial Adviser and former director of MSME-DI (Development Institute), Hyderabad; Mr K E Raghunathan, former president of All India Manufacturers' Organisation (AIMO) and Convenor of the Consortium of Indian Associations; Ms Vanitha Datla, Vice Chairman & Managing Director of ELICO Ltd. and Managing Director of Elico Healthcare Services Ltd.; and P Ramesh Kumar, Chairman and Managing Director of Balaji Pressure Vessels Pvt Ltd.

Enumerating various government policies, Mr Chandra Sekhar assured participants of the continuous support the Development Institute was providing in addressing grievances of the MSME sector even as control rooms have been launched for the same. Suggesting ways to not only protect but also sustain themselves, Mr Ramesh Kumar advised MSMEs to adapt to all kinds of technology post-pandemic as well as reduce outside borrowings while enhancing their raw material inventory cycle.

Ms Datla, on the other hand, highlighted several policy implementation gaps in the sector that led to only 10 per cent of MSME actually benefiting from the same even as many lost out due to cumbersome processes. Meanwhile, Mr Raghunathan pointed out that with MSMEs being of perse nature and in different life cycles, one single policy intervention would not help. Instead, tailor-made, MSME-centric and varied policies were needed to cater to different needs of the sector.