On World MSME Day, Machine Maker organized a virtual seminar titled “Role of Indian MSMEs: India’s Growing Role in the Global Manufacturing Sector,” aimed at providing a comprehensive platform for MSME stakeholders to engage, learn, and collaborate. The seminar, held on June 27, 2024, brought together industry leaders, innovators, policymakers, and thought leaders to discuss the challenges and opportunities facing Indian MSMEs in the global manufacturing arena.
As MSME’s of India are the backbone to the manufacturing industry, it is evident that they provide a huge support to the larger OEM’s. However, these MSME’s sometimes lack the knowledge of having financial aid that is made available from the government. To fill up the gap about this information, Machine Maker had recently organised a virtual seminar on the Role of Indian MSMEs: India’s Growing Role in the Global Manufacturing Sector, on the Wolrd MSME day, with an aim to provide a comprehensive platform for MSME stakeholders to engage, learn, and collaborate.
The seminar was arranged on 27th June 2024 at 5pm, collating industry leaders, innovators, policymakers, and thought leaders to discuss the challenges and opportunities facing Indian MSMEs in the global manufacturing arena. The seminar was supported by Automation Industry Association (AIA) and Solar Energy Society of India (SESI)
The inaugural address was be given by Prafulla Pathak, President, SESI, while Hari Shankar, Managing Editor, Machine Maker was the moderator. Speakers included, Dinakar Murthy Krishna, Managing Partner, Samuthana Constultancoaching LLP; Kanchan Bhat, Director, Gabril Industries; Meetali Mukherjee, MD, Hydax Private Limited; Ravindra Bhatnagar, CEO, Analtical Investments; Dr Sankha Dip Das, MietY, Government of India; Satish P S, CEO, Saraswathi Industrial Consultants; Dr Sunil Jha, Professor, IIT Delhi.
Insights on SAMARTH UDYOG
Providing insights on SAMARTH UDYOG with a presentation, Dr Jha, explained, with the support of Heavy Industry Ministry, we have started Foundation for Smart Manufacturing (FSM) in 2018. The FSM came into existence, when Narendra Modi, Prime Minister of India, visited Hannover Messe, Germany in 2015 and he saw the pace of development stepping up rapidly in automation and smart manufacturing globally, he then realized that these developments are not been happening in India at that pace. Therefore in that year, some of the setups were initiated in India, from which IIT Delhi was one of the setup known as ‘Common Engineering Facility Centre’. This Centre is a mixture of industry and academia experts which is supported by the Ministry.
Dr Jha, further mentioned, “SAMARTH UDYOG stands for Smart Advanced Manufacturing and Rapid Transformation Hubs and we are one of the Hub in IIT Delhi, also it is an representative of MSME.”
In his presentation, Dr Jha gave a outlook on how MSME’s have face several challenges in their business, like quality, delivery, cost amongst the others. Through SAMARTH path the entrepreneur can bring more into the practical applications by having practical skills, competence and ability to perform tasks effectively. Basically SAMARTH is a mission of our Indian manufacturing with the support from the government, it is a vis-à-vis to the response to Industry 4 and other similar acronym from across the world, so we are calling our industry to become more SAMARTH and more capable.
While delivering the inaugural address, Mr Pathak remarked, “In the last decade, the solar sector has undergone significant and unpredictable changes. The most important development is that we now have the capability to provide stable, reliable, and high-capacity power supply at various locations, something that was not possible before. This advancement allows me to advocate for solar energy as a viable option for the industry. One key advantage is that, as a form of distributed generation, solar energy does not incur the social losses associated with transmission. Additionally, the cost of solar power is much lower than the industrial rates for conventional energy. This cost-effectiveness will play a crucial role in the economy. We also have dedicated personnel to support these initiatives. It is a proven fact that many manufacturing setups are opting for green energy, and SESI is here to help you adopt it conveniently.”
Challenges and Innovations in MSMEs
The seminar was focused on the topics including, Government initiatives, Finance for MSME’s, Innovations by MSME’s and Learning & Developments. Elaborating on the topics, Mr Shanker emphasized, that, after Mr Modi became the President of India, he started with ‘Make In India’ campaign which also got promoted in the Hannover Messe 2025 where India was the partner country. It is evident that government is very proactive, but it is also a fact that I have received from the industry people stating that they are unware or do not get the support from the government. To make sure, how Government is actually providing all the help, Dr Das joined the conversation to share what are government initiative which can help MSME’s
Dr Das highlighted that electronics manufacturing, typically dominated by large companies, spurred the Government’s R&D focus on accessibility for MSMEs. They set up a Pune center to streamline production into three value chains: materials, electrodes, and cell assembly, initially investing about 4 crore rupees, with a total investment goal under 10 crore. Introducing 3D printing aims to reduce initial capital to 50 to 60 lakhs while boosting production efficiency to global standards of 80 to 100 meters per minute. “In Smart technology and Industry 4.0, our focus is on 3D manufacturing. The Ministry of Electronics and IT established a National Strategy for Additive Manufacturing in February 2022, available online on our website for free access. This strategy aims to develop technology and manpower to create a billion-dollar market, with targets including 100 startups, 50 technologies, 500 products, and a workforce of 100,000. Awareness campaigns are also integral to this initiative.” Dr Das, further added.
Dr Das stressed, stating that, Additive Manufacturing and MSMEs complement each other seamlessly. We have demonstrated our ability to transition from Industry 1.0 to Industry 5.0. Currently, we are implementing Industry 5.0 in collaboration with the Assam government, focusing on promoting women entrepreneurship.
Practical Implementation and Technological Adoption
On the other hand, Ms Bhat expressed that, she didn’t knew any of the schemes, or she has not taken any advantage from the government schemes, because awareness here is the key factor and that is the need of the hour, so that people can reach out and avail these facility that the government is providing. I had heard about it, but didn’t knew it dept.” This statement of Ms Bhat urged Dr Das to spill out an important information which is a website- ‘ncamp.in’ which has an entire programme on Ministry of Electronics and IT the entire ecosystem of India.
Working in the industry from last 39 years, Mr Satish, reflected on the challenges faced by MSMEs, emphasized the struggle to keep pace with these changes. He highlighted a human tendency to resist new technologies, citing the Law of Diffusion of Innovation, where only a small percentage eagerly adopts new tech, while others lag behind due to skepticism or reluctance to change.
While acknowledging government support during the pandemic and efforts by associations to educate, Mr Satish, emphasized the need for practical initiatives to bridge the gap between online education and real-world implementation. His insights underscored the critical challenge of not just introducing new technologies, but also ensuring they are embraced and effectively utilized by MSMEs.
On the same thoughts, Ms Mukherjee, reflected on her journey as an MSME, acknowledging early benefits from government programs, particularly MDA initiatives that supported exhibitions and marketing. However, she lamented a decline in government aid in recent years, noting reductions in funding and support for MSMEs. She highlighted the disappearance of schemes like MDA and the outsourcing of financial decisions to private banks, which she felt hindered direct access to support. Ms Mukherjee expressed her views over the unavailability of testing facilities previously provided by institutions like CMTI and IIT Chennai, attributing this to funding shortages. Despite encountering obstacles, she expressed determination to persevere as an MSME. Her observations underscored challenges faced by MSMEs in accessing meaningful government support amid changing policies and reduced funding allocations.
Perspectives on Government Support and Policies
Speaking about take on the government initiatives and MSMES and the views on them, Mr Krishna said, “We have successfully marketed ourselves politically, but the reality is a failure. Ten years ago, India’s manufacturing GDP stood at 16%; today, despite initiatives like Make in India and IoT, it has dropped to 13%. These initiatives have been fantastic on paper, but our share has dwindled. Comparatively, Germany’s manufacturing GDP is 21%, Japan’s is 18.7%, and China’s has decreased from 30% to 27.3%, showing a 2% reduction even from a higher base.
“Ministry-level discussions have occurred extensively, yet unless we return to fundamentals, there is little progress. MSMEs in India, like elsewhere, lack foundational practices. For instance, daily works management meetings, standard in Germany, are missing. Japan and China similarly emphasize these basics. We must acknowledge these realities. Believing in IoT or machine data collection alone won’t suffice; we need to focus on fundamental principles.” Mr Krishna further added
Jumping on to another such intersecting topic, on Government subsidies, Mr Bhatnagar explained, “We all know that 99% of MSMEs are micro-enterprises. The entire system and machinery are geared towards pushing these micro businesses to become small enterprises. Our company’s investment strategy is focused on this vision of supporting these organizations, especially in terms of financial aid. The banking system, NBFCs, digital platforms, and P2P lending platforms are all geared up for micro-enterprises.”
“95% of startups see their entrepreneurs eventually returning to traditional jobs. The issue with bankers is that they are the trustees of the money deposited by your fathers, grandfathers, uncles, and aunts. They hold the money on behalf of those who trust them with their savings. Therefore, there are certain norms in place that might seem irritating to some. Having worked closely with banks, I understand why these systems and processes are necessary.” Mr Bhatnagar added Mr Bhatnagar elaborated, “We need to understand that the banking system’s primary job is to manage money with the lowest possible risk. They are not meant to take risks. Our legal system is designed to always favor the individual, not the banker
Conclusion
The seminar highlighted the critical role of MSMEs in India’s manufacturing sector and the need for greater awareness and support from the government and financial institutions. The discussions underscored the challenges MSMEs face, the importance of technological adoption, and the need for practical implementation of initiatives. The event provided a platform for stakeholders to share insights, collaborate, and work towards empowering MSMEs to thrive in the global manufacturing arena.
