MSME NATIONAL SUMMIT and AWARDS 2021: ‘SMEs are being provided opportunities to grow as well as expand their product portfolio’
The MSME NATIONAL SUMMIT AND AWARDS 2021 rolls out on 3 August 2021 and will be focusing on important sectors and their challenges to combat the COVID crisis
•Updated: August 2, 2021 21:13 pm
The COVID Pandemic has impacted majorly on the economies around the world. In India, it not only hindered many lives but also had a major effect on businesses. The Micro, Small & Medium Enterprises (MSME) sector was one of them, which is considered to be the backbone of the economy.
After the unlocking of the first wave of COVID, business activities started resolving, but then the second wave again increased the difficulties of the MSME sector.
See Zee Business Live TV Streaming Below:
In such a situation, we are starting MSME NATIONAL SUMMIT and AWARDS 2021 to brainstorm on the challenges of the MSME sector and to explore new growth opportunities. During the series, we will take stock of different sectors. At the same time, the Small & Medium Enterprises (SMEs) sector, which has done excellent work during the COVID, will also be honoured.
Eminent personalities like Deepak Jain, President, ACMA & CMD Lumax Industries; Sunjay Kapur, Chairman, Sona Comstar; Shradha Suri Marwah; Chairperson & MD, Subros took part in the webinar summit. And the event was moderated by Saurabh Manchanda, SME Editor, Zee Business.
Taking about the challenges faced by SMEs on the liquidity, cash flow front, Deepak Jain, President, ACMA & CMD, Lumax Industries, said that the ACMA has around 850 members. Out of this, 65 per cent are actually MSMEs. He added that after the excellent performance in the auto component sector in the financial year 2018-19, the pace slowed down in the financial year 2019-20.
And a negative growth was also registered. He said that the industry was affected by the COVID lockdown. During this, SMEs were affected the most. However, the situation has improved a bit now as compared to the past. Some recovery is also being seen in the sector.
Looking at the outperformance of the aftermarket segment in the challenging environment, Sunjay Kapur, Chairman, Sona Comstar, said that there has been a growth in this segment. The aftermarket segment is huge. The aftermarket contributes about $10 billion in terms of revenue. There is a stir on both the domestic and export fronts.
Responding to the question related to boosting demand during COVID, Shradha Suri Marwah, Chairperson and MD, Subros, mentioned that the central government has increased many schemes to give relief to SMEs. In which emergency credit funding was prominent.
The government has also changed the definition of MSMEs. She added that on the other hand, ACMA is also doing skilling through the Center of Excellence, through which people have got new opportunities and new jobs. Apart from this, the handholding of SMEs is also being done on digitization and other aspects. They are being provided opportunities to grow as well as expand their product portfolio.
While discussing the Production Linked Incentive (PLI) scheme, Jain said that the Union Government has identified 12 different sectors, which have the potential to go global. He clarified that there is a need to give special focus on skill, quality, and competitiveness when it comes to the global level.
Talking about the current situation, Jain said that within the global value chain, the auto components sector contributes only 1.5 per cent. At the same time, if this stake in the global value chain is achieved by doubling to about 3 per cent or 5 per cent in 5 years through the PLI scheme, then it will be a big deal.