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India Calls for Global Support to MSMEs at G20 Trade Meeting

Strategic Insights

— 1 min read

Prime Minister Narendra Modi emphasized the importance of micro, small and medium enterprises (MSMEs) at the G20 trade meeting in Jaipur, highlighting their significant contribution to global GDP and employment. Modi also proposed reforming the World Trade Organization (WTO) to meet emerging challenges and strengthening the multilateral trading system. He encouraged G20 nations to provide maximum support to MSMEs and adopt sustainable and responsible practices.

Key Takeaways:

  • MSMEs account for 60-70% of employment and contribute 50% to the global GDP, requiring continued support and empowerment.
  • The Indian government has integrated MSMEs into public procurement through the Government e-marketplace and has been working with the sector to adopt the ethos of 'Zero Defect' and 'Zero Effect' on the environment.
  • The Indian presidency has prioritized increasing MSME participation in global trade and Global Value Chains, with the proposal to create a Generic Framework for Mapping Global Value Chains aimed at assessing vulnerabilities, minimizing risks, and enhancing resilience.
  • India's economy is seen with "optimism and confidence" globally, with the country aiming to become the world's third-largest economy in the next few years.
  • The Modi government has initiated various reforms, including 'Reform, Perform, and Transform', to increase competitiveness, enhance transparency, and promote innovation.
  • The Indian government has also implemented initiatives like Make in India and Aatmanirbhar Bharat to boost manufacturing and bring policy stability.
  • The G20 has been urged to harness technology's transformative power in trade, with India's shift to an online single indirect tax (GST) and the Unified Logistics Interface Platform (ULIP) showcasing the benefits of digitization.

Statistics:

  • 60-70% of employment and 50% of global GDP is contributed by MSMEs.
  • G20 accounts for 85% of global GDP, 75% of global trade, and two-thirds of the world population.
  • India has become the fifth-largest global economy in the last nine years.
  • The Indian government has increased competitiveness, enhanced transparency, and expanded digitization to boost manufacturing.
  • MSMEs are integrated into public procurement through the Government e-marketplace.

Sources:

  • "India, G20 call for greater focus on farmers, MSMEs; push for WTO reform" by HT Digital Content Services with permission from Hindustan Times on August 24, 2023

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