With new government policies msmes have massive growth opportunities
In 2020, businesses of several thousand organisations were completely disrupted, and organizations responded by taking a second look at how they onboard, train, develop and coach sellers. At the start of the pandemic, organizations shifted overnight to virtual selling, expecting to return to normal within a month or two. Experts now say that we will never conduct business the same way, even after the pandemic has run its course.
After a year of massive disruption, sales training and enablement is more important than ever. We are still facing uncertainty brought on by COVID-19, learning leaders must reimagine how they will ensure their sales teams are prepared for 2021 and beyond. We have seen a good growth of the MSME sector which is considered as the backbone of Indian economy that has contributed substantially in the socio-economic development of the nation. At the same time the SME category is the most tech-savvy in the entrepreneurial category.
It's expected that India will thrive as one of the leading economies in the world over the next decade in light of a positive political and economic scenario. The Micro, Small & Medium Enterprises (MSME) segment has been playing a remarkable role in the emergence of the Indian economy. The development of the MSME segment is extremely critical to fulfill the national mission of financial inclusion and generation of significant levels of employment across all geographical areas across the country.
MSME sector is the key to unlock India's economic growth by accelerating and assisting development of new age entrepreneurs who have the potential to create extensively competitive businesses from India. India’s GDP is expected to touch 8.5 per cent, with the country likely to be a USD 5 trillion economy by 2025. Industry leaders suggest that MSME is that one segment that has been majorly contributing in the economy and has the potential to emerge as a backbone for this economy. MSMSs would potentially act as a driver for growth if given the right set of assistance and enabling framework.
The recent change in definition for MSMEs by the government was a significant step according to which, an enterprise qualifies as a micro, small or a medium enterprise depending upon the amount of investment made with respect to (i) plant and machinery in case it undertakes manufacturing; or (ii) equipment in case it provides services. Additionally, the prescribed investment thresholds for being included within the definition of MSME have also been increased. The Government also announced the Emergency Credit Line Guarantee Scheme (ECLG Scheme) to help MSMEs with additional funding requirements during the Covid-19 crisis, particularly to meet their operational liabilities, purchase raw materials, and restart their business, this scheme is being implemented through the National Credit Guarantee Trustee Company Limited (NCGTC).
Another highlight remained the rapid advancement in digitization which is driving changes in payment systems in transactions. The number of registered MSMEs grew to 2.5 million units in 2020 due to the launch of Udyog Aadhaar Memorandum policy. Mobile phones have provided enormous opportunities for financial development and are anticipated to be a common tool for carrying out various financial transactions. An increase in cellular phone subscribers is continuing to expand with each passing year.
The Government on 24 March 2020 increased the minimum threshold for default from Rs.1 lakh to Rs.1 crore to initiate the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC). This amendment is expected to benefit MSMEs that have been under financial distress due to the economic damage caused by COVID-19. Consumers have collectively increased their digital payment usage as they are shopping more digitally and use cash only for offline shopping.
The number of registered MSMEs grew to 2.5 million units in 2020 with the launch of Udyog Aadhaar Memorandum policy. India has approximately 6.3 crore MSMEs. As per the MSME Ministry data, as of May 16, 2021, the Udyam Registration portal registered 30,00,822 MSMEs, which replaced the former process of filing for Udyog Aadhaar Memorandum (UAM). Registered micro-enterprises stood at ~ 28 lakh (93%), followed by small enterprises at 1.78 lakh (6%) and midsized enterprises at 24,657 (1%). The Indian MSMEs sector contributes about 29% towards the GDP through its national and international trade.
Finally, the relaxation to Government Procurement Policies is gradually bringing a much-needed boost to domestic manufacturing and reliance and consequently increase chances of survival of MSMEs during this pandemic. However, adequate guidelines should be put in place to make sure that relaxations and consequent lack of competition from global companies do not hamper the long-term goals of MSMEs in India.
Virescent Infrastructure collaborates with IBM and SAP to start its hybrid cloud journey
IBM announced that Virescent Infrastructure, a renewable energy platform backed by leading...
Aeris Communications announces Enterprise Voice Solution - Claerityai
Aeris Communications has launched the Enterprise Voice Solution – Claerityai –...
Zoom is coming with Innovations to Ignite the Next Era of Communications
Zoom has kicked off Zoomtopia 2021, unveiling plans for innovations across its platform de...
Trescon's World Cloud Show Comes Back to India for the 3rd Time with its 10th Global Edition
Taking place on 15 September 2021, the event will virtually convene India' leading Clo...
VIA unveils VIA Mobile360 Heavy Equipment Safety System at MINEXPO® 2021
VIA Technologies, Inc. today announced that it will unveil its new VIA Mobile360 Heavy Equ...
19th Infotech Forum highlights that the pandemic fast-tracked Digital Transformation escalating importance of data and security
Digital technology has transformed nearly every aspect of life, starting from travel, work...