Chennai: A latest study says that MSMEs can play a significant role in rejuvenating economy, however, a lot more needs to be done for them to become a growth driver for India.
According to the study by Nomura Research Institute (NRI) Consulting & Solutions India, three key parameters for the success of MSMEs are financial stability, availability of skilled labour in MSME clusters, and market competitiveness of their products to both achieve import substitution as well as exports.
Ashim Sharma, principal and division head – Business Performance Improvement (Auto, Engineering & Logistics), NRI, said, “The Indian MSMEs have traditionally been catering to the domestic market either through directly selling to the consumers (B2C) or are a part of the value chain driven by large organised private players (B2B). Factors like evolving consumption and increasing competition have led to the increasing relevance of integrating customers’ voice in product design for MSMEs to stay relevant. They need to be connected to a demand led environment, where their business strategy and processes are aligned to the changing market dynamics through a market-oriented strategy.”