ET Make in India SME Summit in Lucknow: Micro industries must be given adequate support in the MSME ecosystem

The second event in this year’s ET Make in India SME Regional Summit series was held in Lucknow on May 25. It saw active participation from stakeholders of the vibrant MSME ecosystem in the city.

The summit is being presented by The Economictimes.com in partnership with Adobe. The first event in this year’s edition was held in Hyderabad on May 18.

This is the second annual edition of the ET Make in India Regional Summit series. In the inaugural year, the programme covered three cities — Ahmedabad, Chennai and Hyderabad.

The purpose of the ET MSME Summit, which has a regional focus, is primarily to increase awareness, promote networking and support industry-specific learning to give the sector a leg up. These programmes also aim to recognise the efforts and achievements of small and medium enterprises in the respective areas, and assist them in tapping opportunities and crafting strategies to become globally competitive. The third ET MSME Summit is scheduled in Kolkata on June 8.

To register for the Kolkata summit, click here


The ET Make in India SME Regional Summit in Lucknow hosted an enlightening fireside chat and panel discussions with stakeholders and industry leaders on the topics “Making UP SMEs Brands of Global Repute” and “UP’s Industrialisation and Economic Growth: Finding the Balance between Labour-Intensive Manufacturing and Services”, respectively.

The conclave began with a keynote address by Alok Kumar, IAS, Principal Secretary, MSME & Export Promotion, Government of Uttar Pradesh, on "MSMEs: The Growth Engine of Uttar Pradesh's Economy". He spoke about how the economy can be transformed in a short period if both industry and state come together to contribute.
Kumar also highlighted the all-pervasive issue of the “missing middle” issue faced by the MSMEs. “Unless you grow, the value addition will be very limited. We need to create an environment where SMEs can grow,” he stated.

Elaborating further, he said that it is the joint responsibility of the government and the industry to identify the constraints that are inhibiting such growth. Kumar also talked about the significance of access to market and how the branding of One District One Product (ODOP) can help MSMES reach national and international markets.

Anandi Agarwal, Chairperson, Women Entrepreneur Cell Indian Industries Association-Lucknow, gave a special address on “UP MSMEs: Prospects and Challenges”. Agarwal spoke about how UP MSMEs are known for their traditional enterprises and modern crafts. “MSMEs are crucial for economic development, providing employment and also contributing to the state’s GDP. UP has taken a significant step in ease of doing business,” she stated.

The participation of youth and women is also very important for the development of MSMEs, Agarwal added. “Women entrepreneurs contribute to economic empowerment, introduce diverse perspectives and foster community development.”

ET Make in India SME Regional Summit: Fireside chat
In the fireside chat, Pranjal Yadav, IAS, Secretary, MSME & Export Promotion, Government of Uttar Pradesh, spoke on “Making UP SMEs Brands of Global Repute”. He highlighted that UP has the advantage of a working population and skilled manpower. “The government is serious about industrialisation. If we have to make MSMEs global brands, entrepreneurs will have to take a lead in taking this forward. Exports have to come up to a standard that they are accepted worldwide,” he stated.

Speaking about the ODOP scheme, Yadav said that this scheme has led to an impetus on export of handicrafts. “Our exports, which were to the tune of Rs 88,000 crore five years back, have now scaled to Rs 1.75 lakh crore; and 60% of UP’s exports come from ODOP handicraft products,” he said, adding that MSMEs’ success stories are often heard in the state.

ET Make in India SME Regional Summit: Panel discussion
As part of the panel discussion, industry representatives gave their views on the SMEs in UP. Rajata Mehra, Convenor-CII Policy Advocacy Panel & Director, Rajat Chemicals Industry, said that while new industry is being encouraged in the state through various sops, existing industry is being given an opportunity to do better. “The government has good intent in terms of policy but execution at middle and lower level is not getting translated. Just having good intent at the top won’t work. Old industries have to be taken care of as well,” he said.

Gaurav Prakash, Chairman MSME, Confederation of Indian Micro, Small and Medium Enterprises, said that MSMEs are the unsung heroes of the economy. “We have to think of the micro industries that form the backbone of the medium and small scale industries. 90% of micro industries are still struggling to get back to their bases,” he stated.

Speaking about how there are many reasons to cheer in UP, Puran Dawar, President of Agra Footwear Manufacturers and Exporters Chamber (AFMEC), said the state is the first to form its own export policy. “Generally, it used to always be the subject of the Centre. Export has always been in focus and, hence, UP is the largest exporter of handicraft in India. UP is the second largest exporter of footwear and leather exports from India, and carpets are doing well. ODOP is an out-of-the-box scheme. To keep the clusters alive and take them to the next level, the ODOP scheme is a wonderful idea but it is missing a road map. This has to be prepared, and skilling is the key to make this happen,” he said.

Affirming such views, Nikita Khanna, Founder of Kaati Carpets, said there has been a large influx of tourists to the state and this gives MSMEs an opportunity to showcase products at national and international levels. On the textile industry, Khanna said the segment is seeing competition from machine-made products. “We need subsidies from the government to get a kickstart. There has to be more awareness about the existing government schemes and the ways to get better access to them. Electricity is also a major concern that adds to the cost of production,” she stated.

The panel discussion at the ET MSME Summit followed a detailed presentation from Adobe on the theme “Empowering India MSMEs through Digital Transformation”. Mohd Yaman, Senior Solution Consultant, Adobe, said that in today’s time, no seminar goes untouched without talking about generative AI, and generative AI as a service is now available with Adobe. “Businesses run on digital documents today. The most critical business data such as financial statements, sales contracts, etc, are in digital format,” he added.
The objective of the ET MSME Regional Summit is also to facilitate networking and encourage learning. These programmes look forward to honouring the efforts and achievements of the MSMEs in various areas, and help them find opportunities and strategies that can make them globally competitive and future-ready companies. The ET MSME Regional Summit series is being presented by Economictimes.com in partnership with Adobe as Associate Partner.