( from left ) Rajeev Kaul, MD, Aequs Limited; Vijay Peri, Vice President, India Industrials, Zetwerk Manufacturing Businesses; Digbijoy Nath, Co-founder, CTO, Agnit; and Sumeet B Patil, Head- Operations, Ethereal Machines and M. Ramesh, Consulting Editor, The Hindu businessline, at a session on MSMEs : Powering Make in India at the hindu businessline MSME Growth Conclave Bengaluru 2025 | Photo Credit: BIJOY GHOSH

The stage is set for MSMEs to grow in India as most of the schemes have been beneficial to the growth of the sectors, even as finance continues to be a challenge, opined stakeholders.

Participating in a panel discussion on “MSMEs: Powering Make in India,” Rajeev Kaul, Managing Director, Aequs, “In India, if we have to do something, we need to have a comprehensive goal.”

Kaul said globally, the MSMEs contribute around 60-65 per cent of GDP in countries such as China, Europe, Japan and US among others. “However, in India we are only at 30% of GDP because that is how historically the industries have entered. So in India, if we have to really do something, we have to really look at much larger picture. As a country, we should have a comprehensive mission and goal,” Kaul said.

Contribution of MSMEs to the GDP

He further added that the contribution of MSMEs to the GDP to increase to at least 50 per cent.

“Though the schemes are helpful to the MSMEs, the efficacy of the schemes must be checked,” said Sumit B Patil, Head Operations Etereal Machines.

Replying to a question, Vijay Peri, Vice President, India Industrials, Zetwerk Manufacturing Businesses said finance continues to be the most fundamental challenge for the MSMEs. Further, Peri said for Indian MSMEs, continuous innovation is no more a choice, but has become the need, he added.

In the context of ‘China plus 1’ strategy, Peri said, “India has become the destination for consumer or industrial goods. China is not being looked at an alternative, but players are diversifying the current supply chains. While China plus 1 strategy gave visibility to India, the tariffs and current geopolitical situation is giving us the urgency,” Peri added.

Digbijoy Nath, co-founder, CTO, Agnit, said the Government schemes have been helpful a lot for the MSMEs, but the risk appetite have to increase. “I think the risk appetite has to increase in terms of funding projects that are more ambitious in scope and also looking beyond silicon,” he said.

M Ramesh, Consulting Editor, businessline, moderated the panel discussion.

Published on June 25, 2025