Former chairperson of Finance Commission NK Singh on Monday said the Micro, Small, and Medium Enterprises (MSMEs) play an important role in India's quest to become a "Viksit Bharat' (developed India).
Speaking at NDTV's 'Emerging Business- Delhi Chapter Conclave', Mr Singh said if the MSMEs today contribute 30 per cent to the country's GDP, they should take it up to 40 per cent to realise Prime Minister Narendra Modi's vision of "viksit Bharat" by 2047.
Mr Singh, who served as the chairman of the Fifteenth Finance Commission from 2017 to 2023, also said that women's empowerment in the sector plays a key role.
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"The role of the MSMEs sector in India becoming a developed economy is not only a supporting productivity role in terms of improving the capital output ratio and total factor productivity, but becoming a higher proportion of the GDP coming from this sector with an increasing higher proportion of women making an important role to play," he said.
Asked about a World Bank report, which said that the women-led enterprises represent 23 per cent of all MSMEs, but account for 31 per cent of the financing gap, Mr Singh said the report has highlighted that the financing gap is disproportionately higher and needs to be addressed.
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The former Indian Administrative Service (IAS) officer said the gender budgeting for government initiatives needs to be intensified.
He also said they require "special" help in becoming part of the value chain, technology, and skill degradation.
