By 2028, economists predict the MSME industry would be valued at US$ 12.24 billion
- IBEF
- April 14, 2023
According to Mr. Subhash Chandra Garg, Former Secretary, Government of India, investing in the digital infrastructure and services industry is important for India’s future growth. The minister emphasised three areas with significant growth opportunities in future, namely physical infrastructure, digital infrastructure, and the services industry. The greater investment opportunity is in digital infrastructure, like data centres and communications. India has established itself as a hub for software creation, including chip design, a substantial export, he added.
Ms. Sakshi Gupta, Principal Economist at HDFC’s Treasury Group brings out the importance of discussing the growth prospects of India amid the global economic situation. She mentioned that India’s forecasted growth rate of 6-7% in FY24 would position it at a better level among other emerging market countries. This is owing to the government's continuing to place a high priority on infrastructure spending, allocating a sizeable budget of US$ 122.44 billion for FY24.
Mr. Arun Dalmia, Co-Chair of the Economic Affairs Committee, considers that medium, small, and micro enterprises (MSMEs) are important to India’s growth, representing 75% of the PHD chamber’s 1.5 lakh members. It is contributing to rural industrialization and provides better employment opportunities. He mentioned that as the gross domestic product (GDP) of India reaches US$ 5 trillion, the MSME sector will be worth US$ 12.24 billion, with a contribution of 63.4 million MSMEs.
The MSMEs are being supported by various government measures such as credit and collateral guarantees, zero deficit and zero effect schemes, and timely payments. It is predicted that with the government’s support, MSMEs will play a significant role to accelerate India’s progress towards higher milestones.
According to Mr. Vikram Singh Mehta, Co-Chair of the Economic Affairs Committee, the growth of India will be resilient irrespective of some signs of moderation. He further stated that the growth in the economy will be driven by private consumption and private investment as well.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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