Minister of State for External Affairs, Government of India, General (Dr.) V. K. Singh (Retd.) has said that MSMEs have a big role to play in the growth of global value chains. He pointed out that low capital requirement and high employment generation capability are two factors that make the Entrepreneurs of MSME segment suited to developing countries such as India. “Today is the time of Entrepreneurs, Startups and innovation. We must recognise the social contribution of this segment,” the Minister pointed out.
Dr. Singh was speaking as Guest of Honour at the opening session of Day 2 of the 7th Global Economic Summit in Mumbai. The Summit is being organized by World Trade Centre Mumbai and All India Association of Industries, with the theme Global Value Chains: Accelerating MSME Growth, Development and Sustainability, during February 22 – 24, 2018.
Stating that Global Value Chains (GVCs) are supply chains that exist on a global scale, the Minister said that India has not been able to catch up with how the world has progressed. He said that the world is flat now and that there is a need to establish value chains in India which are able to cater to the needs not only of the domestic market, but also of other markets outside.
Dr. Singh said that this is the age of specialization, whether it is in technology or goods or services. He observed that with the combination of expertise, raw material, technical know-how and skill, specific regions of the world can specialize in the production of a particular commodity, which can then be distributed globally through a global value chain. He highlighted the need for the right tie-ups, in order to build collaborations and synergy among various sectors, thereby creating better products and benefiting the various elements of the supply chain.
The Minister spoke of the importance of sustainable trade. He said that there is a need for striking the right balance between production and marketing.
Speaking of the initiatives taken by the Government of India for promotion of MSME sector, Dr. Singh said that the Government has signed MoUs with 18 countries for cooperation in the sector. He said that the National Small Industries Corporation (NSIC) under the Ministry of MSME has entered into 34 MoUs for cooperation in the sector. He said an MoU for cooperation with other member countries of Mekong–Ganga Cooperation (MGC) is also being considered.
The Minister said that the Union Budget 2018 has increased allocation for MSME sector and also reduced corporate tax rate for MSMEs. Dr. Singh said that it is vital to conduct a realistic assessment of tax slabs for MSMEs, given the support the sector requires.
The Minister said that Global Value Chains are catching up as far as India is concerned. He said that the 7th Global Economic Summit, with a focus on GVCs and MSMEs, is timely and much-needed. He said that it would add a lot of value to value chains as well as to the academic discourse on the subject.
The Minister released “India Micro, Small & Medium Enterprises Report 2017” and a MVIRDC World Trade Centre Mumbai research study titled “Accelerating Maharashtra’s Export Competitiveness” on the occasion.