Govt looking for in situ solutions for MSMEs: FM Sitharaman on deriving benefits from India’s workforce | The Financial Express

Govt looking for in situ solutions for MSMEs: FM Sitharaman on deriving benefits from India’s workforce

Skill, labour, talent for MSMEs: “We are looking for in situ solutions for MSMEs because they are the ones who give training and employ people locally as much as the large-scale units collectively,” said Nirmala Sitharaman.

Govt looking for in situ solutions for MSMEs: FM Sitharaman on deriving benefits from India’s workforce
Sitharaman also sought to know from the Indian industry what is stopping them to get into manufacturing when many foreign companies are looking to enter India due to favourable policies. (Representative image)

Skill, labour, talent for MSMEs: Finance Minister Nirmala Sitharaman on Tuesday underscored the significance of micro, small and medium enterprises (MSMEs) in order to access how India can benefit from its vast labour force. The minister in a conversation with Hero Enterprise Chairman Sunil Kant Munjal at the Mindmine Summit 2022 on Tuesday said the litmus test for India in the next 25 years of Amrit Kaal is to see how the country can benefit from its workforce.

“If I take the example of the production-linked incentive (PLI) scheme, one of the things we are looking at is its impact on the labour force. When we talk about MSMEs, we are looking for in situ solutions for MSMEs because they are the ones who give training and employ people locally as much as the large-scale units collectively,” Sitharaman said.

“So the policy has necessarily underlined the importance of labour and that is where we think we are pushing technology and digitisation as much as we are pushing opportunities for work,” the minister added. Sitharaman’s remarks were in response to the question by Munjal on whether there is a tweak required in government policies to encourage enterprises for more hiring and better compensation and work conditions for workers.

Sitharaman also sought to know from the Indian industry what is stopping them to get into manufacturing when many foreign companies are looking to enter India due to favourable policies.

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“A lot of companies are moving out of China and want to come (to India) because they find policies a lot more attractive and not just PLI as the overall ecosystem is far more facilitative of such companies looking to move to India. But equally, I would want to know from the Indian industry what is it they are hesitant about,” the minister said. 

The government had last year launched the PLI scheme with an outlay of around Rs 2 lakh crore for 14 sectors, including automobiles and auto components, white goods, textiles, advanced chemistry cell (ACC) and speciality steel. The objective was to make domestic manufacturing globally competitive, curb cheaper imports and reduce import bills by offering companies incentives on incremental sales from products manufactured in India.

According to the Udyam portal data shared by Minister of State for MSMEs Bhanu Pratap Singh Verma in the Parliament during the recent monsoon session, the number of jobs created by new enterprises had doubled post-pandemic. From 48 lakh and 53 lakh jobs created by new enterprises in FY19 and FY20 respectively, the number shot up to 1 crore jobs in FY21 and 1.16 crore jobs in FY22.

Also read: NBFC AUM: Unsecured SME, consumer loans may be the only segment to touch pre-Covid growth this FY: Crisil

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