Gujarat’s MSMEs demand infra upgrade to boost competitiveness

Ahmedabad, June 27 (KNN) The Gujarat’s MSMEs are urging the state government to upgrade the infrastructure, improve compliance and rationalize costs to help MSMEs stay competitive.

Home to around 11.26 lakh MSMEs, Gujarat is the fourth largest state in India in terms of the number of MSMEs, after Maharashtra, Tamil Nadu and Uttar Pradesh, according to the MSME ministry.

Ajit Shah, president, Sanand Industries Association (SIA), said, “Gujarat has a strong base of MSMEs and by leveraging new technologies, they are competing globally. However, infrastructure is needed for better functioning of MSME units.”

“Common infrastructure such as sewage treatment plants and common effluent treatment plants will not only enable MSMEs to perform better but also let them comply with green energy and pollution control norms in a big way,” he said.

Shah added that GIDC clusters have been important for the growth of MSMEs in the state but now, getting world class infrastructure for these clusters is the need of the hour.

“The MSMEs should focus on renewable energy to reduce power costs. Improving common infrastructure and incentivizing MSMEs, in line with foreign companies that invest here, will go a long way in enabling them to stay competitive,” he pointed out.

Chintan Thaker, chairman, Assocham Gujarat state council stressed on the need for a cluster-based approach for MSMEs, which will enable common infrastructure development.

“For instance, a mini solar park can be set up for power intensive MSME clusters, or CETPs or other plug and play facilities. This will help reduce the initial capital expenditure for MSMEs and propel their growth. Hassle-free and expedited approval systems for MSMEs for renewables adoption is a must,” Thaker added.

Another major concerned raised by the State MSMEs is regarding the Finance availability, reported TOI.

GCCI’s former president Shailesh Patwari said, “Gujarat has more than 11 lakh MSMEs with 95 per cent micro, 4.4 per cent small and around 0.40 per cent medium units. The state has a strong base of MSMEs in gems and jewellery, automobile, textiles, chemicals, pharma, engineering, ceramics and plastics sectors. However, finance availability remains the biggest challenge for MSME units.”

“Also, the MSMEs do not get payments on time, and it should be resolved. MSMEs must be promoted for Aatmanirbhar Bharat. In the developed countries, MSMEs contribute around 65 per cent to the GDP which is only around 28 per cent in India, despite being having maximum potential for employment generation,” he added.  (KNN Bureau)