Even as the government has been under severe criticism over the alleged job crisis, it is India's micro, small and medium enterprises (MSMEs) that holds the key to near future job generation.
Even as the government has been under severe criticism over the alleged job crisis, it is India’s micro, small and medium enterprises (MSMEs) that holds the key to near future job generation. MSMEs are expected to create around 1 crore jobs in the coming four-five years.
While rising the middle class and the disposable income makes India an attractive market for consumption, a substantial portion of that is consumed by imports that hinders job creation ability by the domestic manufacturing sector, said a report by consulting firm Nomura Research Institute.
The product groups manufactured in various clusters including artificial Jewellery, sports goods, scientific instruments, metal utensils, machine equipment like textile machinery, electric fans, rubber, plastic, leather & related products, bicycle parts and auto components, textile, wood, paper, food, minerals etc., suggests that high focus on developing MSMEs in these groups can create an additional 75 lakh – 1 crore jobs in the next four-five years through partial substitution of imports, the report said.
“To scale-up, the MSME sector needs a market-oriented strategy based on two key areas of demand led manufacturing and advocacy marketing of the products,” said Ashim Sharma, Partner & Group Head at NRI Consulting & Solutions.
To change the perception about products manufactured by MSMEs since traditional industries lose out on imports perceiving them to be cheap, and poor quality, the report called for identifying influencers in B2B and B2C segments to help develop a positive perception about the products.
These people should be made to experience the products as well as given an overview of the changes brought about in their design and manufacturing (wherever necessary) to make them in sync with the modern customer’s demands. If satisfied with the products, they would act like brand ambassadors for the MSME produce, the report said.
India’s MSME sector contributes to around 3.6 crores (70 per cent) jobs in the manufacturing sector, as per the Ministry of MSME’s annual report 2017-18.