MSMEs can contribute to [continuation]

However, MSMEs are nursed by following challenges:

i) Lower economies of scale

ii) Dualism - to avail government benefits (Economic survey)

iii) Diversity and disputes - low quality control

According to economic survey, diversification of exports is due to MSMEs and a strength for the country.

This can be further strengthened by:

i) Sunset clause on government scheme to prevent diversion (ES)

ii) Technology infusion in MSME processes

iii) Lean availability - improve factoring mechanism

iv) Skilling and upskilling of MSME workers for higher productivity

The Germany model where MSMEs produce highly specialized products can be replicated en India to manufacture regionally diverse products.