MSMEs are Most Important Chain of Economic Growth: Rajnish Goenka

Being the priority sector of Indian economic growth path, MSMEs turf in India is witnessing great action. More importantly,  this action is becoming more result oriented under the leadership of visionary leaders, among such league of leaders, Rajnish Goenka, CMD of Tobu Cycles Group and Chairman, India MSME Development Forum have shared his vision with Faiz Askari of SMEStreet in an exclusive interaction.

“We must ensure a positive ecosystem for entrepreneurs and MSMEs. Every policy, every action needs to be taken for bringing great economic growth and in this path, participation of MSMEs is a must,” says Mr Goenka.

The edited excerpts:

SMEStreet: Being an entrepreneur yourself, how do you look at the overall MSME scenario in India?

Rajnish Goenka: MSMEs are perhaps the most crucial link between India's economic growth and socio-economic transformation. The MSME sector of India is diverse in terms of size, scale of business, geographic outreach, and product range. Indian MSMEs are diverse and versatile as they represent grass-root village industries level to sophisticated international standard manufacturing units. With regards to production Indian MSMEs are producing traditional handicrafts to hi-tech auto components to microprocessors, electronic components and electro-medical devices etc.  As MSME units have a high degree of geographic dispersion, their development assumes great significance for an equitable and inclusive growth which is the ultimate objective of our economy.

As an entrepreneur myself, I can witness that Indian MSME entrepreneurs are facing several challenges.

The positive news for entrepreneurs is that Government of India has pointed out MSMEs as their priority and working on a well defined strategy towards bringing economic reforms through MSMEs. But, all these policies needs to be implemented with such an efficiency that all this will result into the actual reform of the MSMEs and economy as a whole.

SMEStreet: What should be the action plan for bringing economic reforms through Indian MSME sector?

Rajnish Goenka: Bringing more and more entrepreneurs can improvise the economy. Job creators will surely add value in the country’s economy. For doing this, proper guidance and hand holding is required. In addition to this, a positive and pro-business ecosystem can be ensured to develop trust factor among entrepreneurs. As a matter of fact, MSMEs have a largest share of Indian employment base after Agriculture. MSME's in India are nurturing innovation, all is required a proactive and positive ecosystem for their growth.

SMESTreet: You have formed India MSME Development Forum, how will this forum work in order to maximize the participation level of MSMEs?

Rajnish Goenka: We have created this forum and we are inviting more and more MSMEs to come forward to join hands with us. The need of the hour is to unite the MSMEs so that they should become a large united team.

This will help policy makers to identify the exact solution for their problems.

SMESTreet: As a MSME leader and a seasoned entrepreneur, what are your key expectations from this sector?

Rajnish Goenka: Growth and more growth. In OECD economies, MSMEs accounts for 95% of firms, 70% of employment and 55% of GDP. In developing economies also like Brazil, Russia, China and South Africa, over 90% of firms are MSMEs and contribute 20-40% in their GDP. In India, MSMEs only contributes about 8 % to the country's GDP, 45 % of the manufactured output and 40 % of its exports. All said and done, this figure should change in favor of MSMEs. Through our efforts and contribution, we wish to bring a positive change in MSME’s contribution to the Indian GDP.