ISED suggests shifting of MSME policy from populist to pragmatic approach for sustainable development

Kochi, Feb 9 (KNN) To address the latest requirements of sustainable development, Institute of Small Enterprises and Development (ISED) has highlighted the need to change India’s MSME policy from a populist angle to more pragmatic approach.

The Kochi-based Institute is of the view that MSME policies need to be integrated into key growth strategies of the country and not in stand-alone fashion. 

This was underlined by PM Mathew, Senior Fellow &Director, ISED in the paper titled Is India’s MSME and Entrepreneurship ambitions a bit obfuscated? 

Mathew further said that the strategic role of the private sector is crystal clear given India’s macroeconomic policy and vision for the centenary year 2047.

Owing to the constraints of the government on the investment front and capital formation, the private sector is expected to have a significant place.

Within the private sector, the role envisaged for the MSME is crucial. However, a strategic translation of such a policy approach into practice requires a clear perception of the present and the potential role of entrepreneurship and SMEs, Mathew said.

India’s ambitions relating to MSME and entrepreneurship become relevant against the backdrop of the new policy approach being discussed at NITI Aayog wherein ‘district’ is going to be the focal space of programme implementation, he said.

The paper also stressed on the importance of cooperative federalism and said the question and concern on entrepreneurship development and SME promotion become crucial against the current experience on policy perceptions in the States and of programme implementation within the overall framework of ‘cooperative federalism’.  (KNN Bureau)