MSMEs Need Better Finance, Infrastructure And Talent: KDEM Chairman

New Delhi, Jun 26 (KNN) Micro, small and medium enterprises (MSMEs) will play a central role in India's journey towards becoming a developed nation by 2047, but the sector requires stronger policy support, easier access to finance, better infrastructure and skilled talent, according to BV Naidu, Chairman, Karnataka Digital Economy Mission (KDEM).

MSMEs Critical to Achieving Viksit Bharat 2047 

Speaking at the fifth edition of the businessline MSME Growth Conclave, Naidu said India's ambition of becoming a developed economy depends on significantly raising per capita income from the current level of around USD 2,200 to USD 20,000-25,000 by 2047.

He said MSMEs would play a greater role than large enterprises in driving this transformation, alongside India's projected rise to a USD 32 trillion economy.

Digital Economy Emerging as a Major Growth Engine 

Highlighting the growing importance of technology, Naidu said India's digital economy is currently valued at around USD 500 billion and contributes nearly 13 percent to the national economy. In Karnataka, however, digital industries account for an estimated 35-40 percent of the state's economy.

He added that Karnataka's digital economy is expected to exceed USD 400 billion by 2031-32, with MSMEs continuing to drive innovation and growth across the technology sector.

Four Priorities Identified for MSME Growth 

Naidu identified four key priorities for MSME development, greater access to government procurement, expanded market opportunities, improved infrastructure and availability of skilled talent.

He noted that participation in government projects remains difficult for many MSMEs due to eligibility conditions and earnest money deposit requirements.

Access to Finance Needs Further Strengthening 

On access to finance, Naidu said around 2,500 start-ups had registered with the State Bank of India's Koramangala start-up branch within a year, with collateral-free loans worth Rs 1,200 crore sanctioned. 

He also highlighted Karnataka government's Elevate programme, which has provided grants of up to Rs 50 lakh to start-ups and MSMEs, with total disbursements reaching Rs 293 crore.

Discussing infrastructure support, he pointed to Karnataka's network of 32 Centres of Excellence and initiatives such as the Semiconductor Fabless Accelerator Lab (SFAL), which provide MSMEs with access to advanced testing facilities and technology infrastructure.

Beyond Bengaluru Initiative Expands MSME Ecosystem 

Naidu also highlighted KDEM's Beyond Bengaluru initiative, aimed at expanding technology ecosystems across the state. 

He noted that Belagavi and Mysuru alone have around 1.7 lakh and 1.5 lakh MSMEs, respectively, and stressed that continued government support would be essential to help smaller enterprises adapt to rapid technological changes, including the growing adoption of artificial intelligence.

(KNN Bureau)