Dr Rajneesh Highlights MSMEs as Engines of India’s Growth

Dr Rajneesh, Additional Secretary and Development Commissioner (MSME), Ministry of Micro, Small and Medium Enterprises, Government of India, has highlighted that MSMEs are the true engines of India’s inclusive growth and employment generation. “India today has over 6.9 crore registered MSMEs on the Udyam portal, providing employment to nearly 30 crore people. Our goal is to add another 4 crore MSMEs to this ecosystem in the next four to five years,” he said.

Addressing the 11th Edition of the FICCI CMSME Summit 2025 on the theme ‘Future Ready MSMEs: Digital, Green, and Inclusive’, Dr Rajneesh underlined that the focus on technology, sustainability, competitiveness, and access to finance is critical to make MSMEs future ready. “MSMEs are spread across Tier 2, 3, 4, and 5 towns and have become the backbone of India’s resilient and geographically inclusive growth story,” he added.

Elaborating on government interventions, Dr Rajneesh shared that the Ministry of MSME is focusing on institutional mechanisms that unlock the sector’s full potential. “Through the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE), we have enabled over ₹8 trillion in additional credit over the last three years—more than double the amount achieved in the previous two decades,” he informed.

He emphasized that the perception of MSMEs as high-risk borrowers is a ‘myth’ and cited RBI data showing an NPA rate of only 3.5% for MSMEs. “Access to affordable finance is the key to unlocking entrepreneurship, innovation, and sustainable growth among MSMEs,” he asserted.

Dr. Rajneesh also underscored the Ministry’s recent efforts to promote sustainability and technology-driven competitiveness through schemes like GIFT and SPICE, which incentivize MSMEs to adopt greener and more efficient manufacturing practices. Referring to India’s progress in public procurement, he noted that Central Public Sector Enterprises (CPSEs) are now sourcing over 35% of their total procurements from MSMEs—well above the mandated 25%. “Direct procurement from MSMEs has helped CPSEs reduce costs by up to 30%,” he added.

Highlighting the government’s ongoing collaboration with states under the RAMP Programme, Dr. Rajneesh said, “We are working with state governments to design area-specific strategic interventions for MSMEs—because their challenges in the Northeast, coastal regions, and hinterlands are not the same. Future readiness requires solutions that are local, adaptive, and innovation led.”

Mr Mihir Kumar, CEO, Government e-Marketplace (GeM) said, “We align our procurement rules and platform functionalities to promote MSMEs. All bids, products, and services are visible to all. We are also working on a solution to facilitate purchase order procurement through the GeM portal.”

“We must continue investing in skilling, reskilling, and upskilling for MSMEs to leverage emerging technologies effectively,” added Dr. Subhranshu Sekhar Acharya, CMD, National Small Industries Corporation (NSIC).

“MSMEs are not just economic actors, but agents of transformation. To be future-ready, they must embrace technologies that are tailored, practical, and inclusive — not merely transplanted. With the right support for technology adoption, skills, and collaboration, India’s MSMEs can continue to adapt, innovate, and lead globally,” noted Dr. Cristiano Pasini, Director, UNIDO.

The inaugural session of the Summit also featured addresses by Mr. Girish Luthra, President, FICCI-CMSME & Chairman, Luthra Group of Companies; Dr. Cristiano Pasini, Director, United Nations Industrial Development Organization (UNIDO); and Mr. Sanjay Bhatia, Past President, FICCI-CMSME & Managing Director, Hindustan Tin Works Ltd.

Other speakers highlighted the importance of fostering digital enablement, technology adoption, and procurement reforms to enhance MSME competitiveness. 

The 11th Edition of the FICCI CMSME Summit 2025 brought together policymakers, industry leaders, and MSME representatives to deliberate on strategies for making India’s MSME sector future-ready through innovation, sustainability, and integration with global value chains.