Empowering MSMEs for export success

Through reforms and e-commerce innovation, India must supercharge its MSMEs

Micro, small and medium enterprises (MSMEs) are often called the powerhouse of the Indian economy. By some accounts, they contribute 27 per cent to India’s gross domestic product (GDP) and provide 110 million jobs. However, dig a little deeper, and a different narrative emerges. MSMEs represent a symptom of India’s regulatory glass ceiling, with 85 per cent classified as “dwarfs” — older than 10 years but still smaller than 100 employees, contributing relatively little dynamism to the economy. So, which of the two narratives is correct? As it turns out, both. We have a large number of MSMEs, but they