Converging Technology Enablers for Sustainable MSME Growth
The Open Network for Digital Commerce (ONDC) has made significant success in recent months with more than one lakh sellers and service providers and more than 50 network participants registering with the platform. The platform is created as a first-ever attempt by the Ministry of Commerce and Industry as an open and interoperable network to foster democratisation and create a digitally aware enterprises, said Mr T Koshy, Chief Executive Officer, ONDC while speaking at the CII MSME Growth Summit here today. The MSME Growth Summit was organised by CII on the Key theme, ‘MSMEs go digital for sustainable growth’, coinciding the occasion of sixth anniversary of International SME Day.
Mr Koshy said that ONDC has a completely automated grievance redressal system enabling an online resolution mechanism. Beginning with sectors like food and grocery and mobility, the platform creates humongous potential for the SMEs, especially the small retailers in all sectors through digital commerce.
Speaking at the occasion, Mr Sivasubramanian Ramann, Chairman & Managing Director, Small Industries Development Bank of India (SIDBI) said that SIDBI as a major growth partner of India in its journey to become a USD 5 trillion economy, makes every effort to transform the way MSMEs approach credit with a digital-first approach.
Direct lending at SIDBI makes up to 16% of the total borrowing of MSMEs that stand at INR 25 lakh crore. “We are hopeful that the lending will grow to another INR 25 lakh crore in next three years”, he said. He further said that loans upto INR one crore do not require human role in the entire journey of the SMEs.
Talking about various support facilities for the MSMEs through Government e-Marketplace (GeM), Mr Prashant Kumar Singh, Chief Executive Officer said that GeM has taken up many revolutionary steps since its inception in 2016, especially to address the three issues, including lack of awareness and training, cumbersome registration process, and delayed payments to the SMEs. The online platform for procurement of goods and services for Central and State Government agencies has been facilitating services through Common Service Centres and India Post for onboarding the portal.
The smallest SME can now be in a position to transact with the big players available in the market through GeM including all the 2.7 lakh panchayats in the country, ensuring enhancing inclusivity. To address the delayed payment issues, GeM will soon announce an interest penalty, following a decision taken by the Ministry of Finance.
Some States are now procuring in a big way through the GeM portal. However, more awareness is required as a lot of States are yet to sign-in with GeM, said Shri Koshy.
Mr T Natarajan, Additional Secretary, Department of Defence Production, Ministry of Defence said that to facilitate defence procurement from local sources, licensing requirements for many defence products have also been removed. This is a huge opportunity which should be leveraged by Indian MSMEs.
Mr M Ponnuswami, Co-Chairman, CII National MSME Council said CII has recommended for creation of a MSME cell at all the Ministries to provide hand-holding to MSMEs.
27 June 2023
New Delhi