Indian Economy News

Prime Minister Mr. Narendra Modi calls for more attention to MSMEs at G20 trade ministers' meet

  • IBEF
  • August 25, 2023

Prime Minister of India, Mr. Narendra Modi, has urged for increased attention to micro, small, and medium-sized firms (MSMEs), which account for 60-70% of employment and contribute 50% of global GDP.

Due to the government's consistent efforts over the last nine years, India has risen to the fifth-largest global economy, moving away from "red tape to the red carpet," he remarked. He stated that the administration is determined to make India the third-largest global economy in the next few years.

Mr. Modi was addressing virtually at the beginning of the two-day G20 Trade and Investment Ministerial in Jaipur. The conference was preceded by India's fourth and last Trade and Investment Working Group (TIWG) meeting on August 21-22.

Mr. Narendra Modi said, “We must pay more attention to MSMEs, given their key role in the global economy. They need our continued support. Their empowerment translates to societal empowerment”.

The PM also urged that the G20 trade ministers work together to promote equitable competition between large and small sellers, citing issues in the rapidly increasing cross-border e-commerce market. He also underlined the importance of addressing consumer problems in fair pricing discovery and grievance management methods.

He said that India was able to establish a consensus at the World Trade Organisation (WTO) to protect the interests of millions of farmers and small enterprises.

Mr. Modi remarked “Current global challenges, from the pandemic to geopolitical tensions, have tested the world economy. At G20, it is our responsibility to rebuild confidence in international trade and investments. We must build resilient and inclusive global value chains that can withstand future shocks. In this context, India's proposal to create a Generic Framework for Mapping Global Value Chains is important. This framework aims to assess vulnerabilities, minimise risks, and enhance resilience”.

During the working group sessions that began in March, five priority areas were identified: trade for growth and prosperity, resilient trade, and global value chains, integrating MSMEs in world trade, logistics for trade, and WTO reforms.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.