Source: LiveMint.com, Oct 28, 2020
Boosting the share of small businesses in the economy is a priority and scaling up exports and lowering costs are essential to help them recover quickly, Union minister Nitin Gadkari said on Tuesday.
He said the Centre has set a target of adding 50 million jobs for micro, small and medium enterprises (MSMEs). The sector currently accounts for about 110 million jobs and 30% of India’s gross domestic product (GDP).
It is extremely important to raise MSMEs’ share in exports, the minister for MSMEs and transport said during a webinar hosted by Walmart on a roadmap to train small firms to participate in the global supply chain. Gadkari said the goal was to scale up the contribution of MSMEs from 30% of GDP to 50% of GDP.
“For the quick revival of the MSME sector, we now need special focus on boosting exports and reducing overall costs. MSMEs need to adopt necessary practices, too, and reduce power and logistics costs,” he said.
Gadkari urged the Walmart management to guide and train the handicraft, khadi and village industries. It will give the online retailing platform more business opportunities, while creating more jobs in India, he said.
The retail giant has rolled out a scheme, Walmart Vriddhi supplier development programme, to train and mentor small businesses. It offers small firms the tools to adopt new technologies for expanding business, the company said.
The programme seeks to “empower 50,000 MSMEs to Make in India for domestic and global supply chains”, it said.
“Walmart Vriddhi opens up opportunities for MSMEs to sell into Walmart’s supply chains or the open marketplace,” Walmart said, quoting Judith McKenna, president and chief executive officer, Walmart International.
Walmart Vriddhi’s first all-digital e-institute will be open to MSMEs located in Panipat, Sonipat and Kundli, an area that is a hub of textile, steel and kitchenware production with a strong entrepreneurial heritage and a skilled workforce, the company said. Eligible companies can access digital training through a mobile application in English and Hindi, it added. “Our mission is to encourage exports from MSMEs. Indian MSMEs must become part of global supply chain,” Gadkari said, adding that the liquidity shortage faced by small businesses has been resolved to a great extent.