MSMEs must focus on quality, competitiveness, and global integration: Govt
New Delhi, Aug 26, 2025
MSMEs contribute over 30 per cent to GDP and 45 per cent to exports, but leaders stress quality, innovation and Industry 4.0 adoption to boost competitiveness and global integration
Micro, Small and Medium Enterprises (MSMEs) need to shift from a price-centric model to one driven by quality, competitiveness, and technology adoption if they are to integrate with global value chains and support India’s growth vision, a senior government official said on Tuesday.
“MSMEs are the true engines of growth, contributing over 30 per cent to GDP, 45 per cent to exports, and providing employment to more than 28 crore people, particularly with their presence across tier-2 and tier-3 cities. Their resilience enabled India’s swift post-pandemic recovery and they will be central to achieving the vision of Viksit Bharat,” said Dr Rajneesh, Additional Secretary and Development Commissioner, Ministry of MSME, at the CII MSME Growth Summit 2025 in New Delhi.
He highlighted that the Ministry has facilitated credit guarantees worth Rs 6.4 trillion in the past three years and is in the process of setting up 100 technology centres nationwide to boost competitiveness. “MSMEs must integrate into global value chains to drive India’s vision of becoming a Viksit Bharat by 2047,” Dr Rajneesh added.
“Smart manufacturing clusters for cost-effective Industry 4.0 adoption will be a key driver for competitiveness,” said Sunil Chordia, Chairman, CII National MSME Council and CMD, Rajratan Global Wire Ltd.
However, M Ponnuswami, Co-Chairman, CII National MSME Council and CMD, Pon Pure Chemicals, said greater awareness about low-cost automation, credit schemes, and procurement opportunities was essential for MSMEs, particularly in tier-2 and tier-3 cities. “Banks are increasingly keen to fund MSMEs, but entrepreneurs must leverage these opportunities,” he noted.
Industry leaders stressed that MSMEs should embrace innovation and sustainability to scale globally. “India’s growth story is inseparable from the success of MSMEs. They must prioritise quality and stronger collaborations with large manufacturers through shared R&D,” said Shreekant Somany, CMD, Somany Ceramics Ltd.
Echoing the need for digital transformation, Dilip Sawhney, Chairman, CII National Committee on Smart Manufacturing and MD, Rockwell Automation, said Industry 4.0 solutions were crucial for overcoming challenges of traceability and compliance. “Even zero-capex digital interventions, such as AR-powered digital logbooks, can strengthen process integrity, boost customer trust, and improve competitiveness,” he said.
Vikram Gandotra, Chairman, CII Working Group on Technology and Director, Siemens Ltd, said Indian MSMEs had the potential to match global peers like Germany and Korea. “Industry 4.0 is the critical lever for strengthening efficiency, productivity, and global positioning,” he said.
[The Business Standard]
