-    The President of India counted availability of finance, competition from big corporations, lack of latest technology, raw material and skilled workforce, limited market access as the biggest challenges for the sector.
-    Government policies like revision of classification criteria for MSMEs, increase in credit availability, encouragement of central ministries, skill development of artisans under the PM Vishwakarma Yojana have removed many hurdles.

The President of India Droupadi Murmu has stressed upon a robust ecosystem that is not only important but also essential for sustainable development of the country. Speaking on the occasion of World MSME Day, the President said that Micro, Small and Medium Enterprises (MSMEs) are a strong pillar of the country's economy. They contribute significantly to GDP and promote innovation at the grassroots level.

A robust MSME ecosystem is not only important but also essential for the country's sustainable economic development. These enterprises generate more employment opportunities at a relatively low cost of capital. Most importantly, these enterprises generate employment in rural and backward areas. In this way, the MSME sector contributes to inclusive growth by empowering weaker sections and decentralizing development.

Underlining the importance of the sector, the President said that there is no doubt that the MSME sector is playing an important role in the progress of the country. However, this sector also faces many challenges, the major ones among them being the problem of finance, competition from big corporations, lack of latest technology, lack of raw material and skilled workforce, limited market and delayed payment.

Focused Plans for MSMEs

The President said that, realizing the importance of MSMEs and their problems, the Government of India has taken several policy initiatives. These include revision of classification criteria for MSMEs, increase in credit availability, encouragement of central ministries, departments and central public sector enterprises to procure at least 35 percent of their annual procurement requirements from micro and small enterprises, skill development of artisans under the PM Vishwakarma Yojana to name a few.

The President was happy to note that these efforts have led to a very rapid increase in the number of registered MSMEs and that the increase in participation of women in the MSME sector in recent years. She expressed confidence that the Online Dispute Resolution Portal for MSMEs will prove to be important in cases of delayed payments.

The President said that innovation is very important for the sustainability of MSMEs. Promotion of grassroots innovation by MSMEs can provide affordable solutions to local issues from local resources. 
She said that the participation of more and more women in this sector is essential for the all-around development of the country. She urged the young women to set up enterprises and become self-reliant.

The President said that MSMEs are contributing significantly to India’s economic growth, but they are also responsible for a large share of energy consumption and emissions. Promoting green technology in the MSME sector is the need of the hour. This will not only increase the sustainability and competitiveness of MSMEs but will also help the country achieve its climate goals.