The Union government is in the process of launching a Centre of Excellence for artificial intelligence, Robotics, and Innovation in Bengaluru’s Peenya Industrial Area to support the growth and development of micro, small, and medium enterprises (MSMEs) in Karnataka and across the country, Minister of State for MSME Shobha Karandlaje.

The Minister was speaking at the FKCCI-organised Global MSME Conclave’s award ceremony themed “The $10 Trillion Journey: From Local Resolve to Global Realisation” at Palace Grounds on Saturday.

Emphasising the importance of the MSMEs in India’s development, the Minister said the sector provided employment to nearly 33 crore people and contributed around 30% cent to the country’s Gross Domestic Product (GDP).

Ms. Karandlaje added that nearly ₹30,000 crore has been provided as subsidies under the Prime Minister’s Employment Generation Scheme to promote entrepreneurship.

Key challenges faced by MSMEs

According to Ms. Karandlaje, skilled labor, technology, access to finance and market are some of the key challenges MSMEs are facing. Stressing the need for modernisation, she urged industries to adopt artificial intelligence, robotics, and digital technologies to improve competitiveness.

The Minister also highlighted the importance of skilled youth, confidence bankers have in entrepreneurs, advanced technology, and effective marketing. “We are now competing with the world. Products manufactured by the MSMEs must reach global markets,” she said.

Speaking at the Conclave, FKCCI president Uma Reddy said the MSMEs played a crucial role in employment generation and innovation. She urged the Central government to formulate a separate policy for micro and small enterprises, noting that they constitute 97% of the MSME ecosystem. Highlighting challenges related to technology, finance, markets, and policy support, Ms. Karandlaje said the conclave aimed to help the MSMEs scale up and achieve global competitiveness.

Awards were presented under different categories such as Women Entrepreneurs, Legacy Continuity, Social Impact, and Digital Leap, among others. The three-day conclave will conclude on Sunday.