Opportunities for MSME – In order to balance the climate-changing gases and the economic growth, Beijing has enforced energy consumption limits in factories. Due to this, the manufacturing power of China has been impacted adversely. This resulted in a decrease in the annual economic growth of the nation, from 8.2% to 7.7%. China being a leader in manufacturing smartphones is facing a shortage of energy supply. Due to the partial shutdown of global trade and supply, the nation is facing a shortage of processing chips, disruptions in shipping facilities, and the manufacturing of mobile components. As the economy is recovering from Covid, foreign demands have surged leading to an increase in the emission of industrial gases. To achieve its energy consumption target the Chinese government has taken corrective measures.
At this point in time, when the factories are getting shut down in China, India can take this to an advantage. According to the minister of MSME’s Narayan Rane, the medium and small-level enterprises should take the leap when the manufacturing giant is unable to cater to the global requirement. According to reports, China constitutes around 64% share in global manufacturing while India has only 6%. If the MSME entrepreneurs invest in manufacturing the products which China is unable to deliver to the world, it can add around 10% of the global manufacturing share leading to an increase in national GDP.
Rane was a member of Shiv Sena before he joined the Indian national congress. In 2017 he started with launching the Maharashtra Swabhiman Paksha. In 2018 he joined the Bhartiya Janta Party and merged his party with BJP. In his tenure, he has taken various steps to strengthen the position in the MSME sector in India, encouraging entrepreneurial spirit among aspiring startups.
In the month of November this year, Rane has done significant work towards empowering the MSME industrialists. In Assam, he laid the foundation of a flattened factory complex at Patgaon at Rani. The building is a multi-storied structure that will provide space for the manufacturing of components, assembly, and storage final output. Each floor will have 12 numbers of industrial units and there will be provision for an elevator in the factory complex with a capacity of 2,500 kg. The project costs around Rs 21.96 crore. The main aim of building this complex is to provide space for the growth of manufacturing.
During the energy crisis that China is facing currently, Indian MSME entrepreneurs can utilize this opportunity to start their own manufacturing and adopt the latest technology to produce quality products which can give tough competition to the Chinese products in the global market.
According to Rane, the growth of manufacturing can provide manufacturing in India can provide employment opportunities to semi-skilled and unskilled laborers in the state. This can lead to the overall development of the state and contribute to GDP growth for the nation.
According to the vision of Narendra Modi, the Finance Minister had announced the creation of a Fund of Funds for MSMEs under the Atmanirbhar Bharat package to address severe shortages being faced by MSMEs in securing growth capital.