Improving Economic Dynamism
and Accelerating MSME Growth
Summary of recommendation - June 2020
Introduction
This report includes a set of recommendations developed by an “MSME Transformation Task Force" constituted by Ravi Venkatesan (Founder, GAME) and chaired by Dr. K. P. Krishnan (IAS (Retd), Former Secretary, Government of India). These recommendations aim to revive the industry with a specific focus on the MSME group that constitutes a large part of the economy and workforce.
Context
Since March this year, COVID-19 has left its impact on all sectors of the Indian economy, especially affecting MSMEs. A precipitous dip in demand, disruption in supply chains and a two-month long lockdown have together decimated cash reserves and resulted in an existential risk for the sector. To survive this crisis, 70% of India’s MSMEs have cut back on their workforce. Further, estimates suggest that 20-40% of MSMEs could permanently close.
This document is intended to be a set of actionable recommendations to help increase the dynamism and competitiveness of MSMEs, especially in today’s environment. It also suggests an operationalization plan and metrics to track success where applicable. To make the recommendations pragmatic, they were shared with different stakeholder groups including state governments, industry bodies, corporations, social enterprises, etc., and their thoughtful inputs have been incorporated.
National Task force members
| ● Ankit Agarwal | – Partner, McKinsey & Co. |
| ● Amit Basole | – Professor, Aziz Premji University |
| ● Anand Deshpande | – Founder and Chairman, Persistent Systems |
| ● Bharath K. S. | – Founder, Poornatha |
| ● Dr. K. P. Krishnan(Chair) | – IAS (Retd), Former Secretary, Government of India |
| ● Ramesh Mangaleswaran | – Senior Partner, McKinsey & Co. |
| ● Piyush Munot | – Director, Varsha Forgings |
| ● Radhika Pandey | – Economist, NIPFP |
| ● Amrita Pillai | – Economist, NIPFP |
| ● Sanjiv Puri | – Chairman and MD, ITC |
| ● Sangita Reddy | – Joint MD, Apollo Hospitals |
| ● Manish Sabharwal | – Chairman, Teamlease |
| ● Services Srinivasan S.C | – CFO, Bosch India |
| ● Ravi Venkatesan (Co-chair) | – Founder – GAME |