MSMEs are the backbone of a country and play a key role in its economic growth. Telangana has an estimated 26.05 lakh MSMEs with micro-enterprises alone accounting for more than 25 lakh units. It is also among the top five states in the country that has worked immensely to provide relief to the MSME sector from becoming Non-Performing Assets (NPA) as a result of the Covid-19-induced economic slowdown. Contributing to this, online platforms like e-commerce also play an important role in providing these small businesses with improved infrastructural support, accelerating their digital transformation, and helping them scale their business exponentially.
Telangana is in the forefront of technological revolution and the e-commerce sector serves the twin role of providing employment as well as identifying clusters of MSMEs in tier-2 and tier-3 cities for the overall growth of the state. However, MSMEs still need hand holding to build product-trust for the consumers through skill enhancement training and workshops. Additionally, complex GST requirements and additional compliances hinder the transition of MSMEs onto the online platforms.
Mr. K. Bhasker Reddy, President, Federation of Telangana Chambers of Commerce and Industry (FTCCI), spoke at a panel discussion at the third edition of Amazon Smbhav held on 19th May 2022, to deliberate on building the skill-potential of the MSME community. He shed light on the need to enhance product-trust for consumers and offer an enabling GST framework that promotes India’s inclusive growth agenda for MSMEs. Some key highlights and recommendations that came up during the discussion are as below.● He initiated the discussion on how the government and industry bodies, including the FTCCI, are working towards helping MSMEs in India to further identify clusters beyond tier-1 cities by making opportunities accessible.● There is a need to further deepen the reach of technology literacy to small businesses in tier-2 and tier-3 cities of the state, enhancing the logistics connectivity as well.● He stressed on the need to provide seamless experience to consumers by generating trust and encouraging small business owners to adopt online mode. “In order to help MSMEs participate in the market, it is important to provide training and workshops that will enable them to build trust of the consumers and redress grievances,” he said.