There has been a recent focus of government on the MSME sector and many initiatives have been launched for this sector, however, the MSME sector still suffers from many bottlenecks. In this context, discuss the hurdles, opportunities, and measures for the MSME sector. – IASPOINT

There has been a recent focus of government on the MSME sector and many initiatives have been launched for this sector, however, the MSME sector still suffers from many bottlenecks. In this context, discuss the hurdles, opportunities, and measures for the MSME sector.

MSME sector in India contributes to 30% of GDP & 45% of merchandise exports.

Recent steps taken for the development of MSMEs:

Benefits from the development of MSMEs:

Challenges associated with MSMEs:

Measures to overcome the hurdles:

Although, collateral-free assistance and sovereign credit guarantee to MSME will ease the financial crunch, however, the government should devise schemes in such a way that moral hazards and dependency culture can be averted.

More focus on e-commerce, use of ICT tools, digital economy and vocal for local can help MSMEs come up in every node & corner of the country.

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