Indian MSME Sector Must Innovate and Scale Up for Global Competitiveness
The Indian MSME sector must innovate and scale up to build globally competitive businesses, according to industry experts at the fifth edition of The Hindu businessline’s MSME Growth Conclave.
Keynote Address Highlights Innovation-Led Growth
Jairam Varadaraj, Managing Director of ELGI Equipments, emphasized the need for Indian companies to move beyond low-cost manufacturing and government support, focusing instead on building globally competitive, innovation-led businesses.
Varadaraj urged companies to create ‘Me-First products’ by identifying customers’ unstated needs, rather than merely responding to existing demand. He also stressed the importance of building capabilities based on ‘know why’ – deep scientific understanding – rather than just ‘know how’, and looking beyond India’s relatively small domestic market to tap global opportunities.
Three Challenges Confronting MSMEs
Ravichandran Purushothaman, Chairman of CII Southern Region and President of Danfoss India, identified three major challenges confronting MSMEs – shortage of skilled manpower, rising electricity costs, and uncertainty in order inflows.
Purushothaman called on MSMEs to invest in digital technologies, automation, and energy-efficient solutions to improve productivity and operational visibility. He also emphasized the importance of corporate governance, stock market listing, and stronger cash generation instead of focusing solely on topline growth.
Market Impact and Details
- The proposed Integrated Manufacturing Cluster at Palakkad in Kerala is positioning the State as the next major manufacturing hub.
- The panel on ‘Financing in the time of war’ highlighted the difficulties faced by micro and small industries in accessing finance due to lack of awareness and bureaucratic hurdles.
- The panel discussion on clean mobility emphasized that clean mobility is more an opportunity than a threat, with a big market emerging for e-vehicles and therefore for MSMEs.
Key Takeaways
- Indian MSMEs must innovate and scale up to build globally competitive businesses.
- Companies should focus on building capabilities based on ‘know why’ – deep scientific understanding – rather than just ‘know how’.
- Investing in digital technologies, automation, and energy-efficient solutions can improve productivity and operational visibility.
FAQs
What are the three major challenges confronting MSMEs?
Ravichandran Purushothaman, Chairman of CII Southern Region and President of Danfoss India, identified three major challenges – shortage of skilled manpower, rising electricity costs, and uncertainty in order inflows.
How can MSMEs improve productivity and operational visibility?
MSMEs can improve productivity and operational visibility by investing in digital technologies, automation, and energy-efficient solutions.
What is the significance of corporate governance for MSMEs?
Corporate governance is essential for MSMEs to ensure stronger cash generation, stock market listing, and overall competitiveness.
Conclusion
The MSME sector in India must innovate and scale up to build globally competitive businesses. Industry experts emphasize the need for companies to focus on building capabilities based on ‘know why’ – deep scientific understanding – rather than just ‘know how’. By investing in digital technologies, automation, and energy-efficient solutions, MSMEs can improve productivity and operational visibility, and tap into global opportunities.
As the Indian economy continues to grow, the MSME sector will play a crucial role in driving innovation and competitiveness. By embracing innovation-led growth and scaling up, MSMEs can build globally competitive businesses and contribute to the country’s economic growth.
