Summary:

NITI Aayog, in partnership with the Institute for Competitiveness (IFC), published a study on improving the competitiveness of India's Micro, Small, and Medium Enterprises (MSMEs). The research focuses on issues related to funding, skilling, innovation, and market access, providing sector-specific recommendations for textiles, chemicals, automotive, and food processing. While access to loans has increased, significant gaps remain, with just 19% of MSME credit demand met by FY21. Growth is hindered by skill shortages, insufficient R&D investment, and barriers to technology adoption. The report advocates for a reformed Credit Guarantee Fund, greater awareness of state programs, and targeted interventions. It also calls for enhanced support for MSMEs' integration into global value chains through digital marketing, market linkages, and policy frameworks.

Source: IBEF

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