Creating Aatmanirbhar Bharat by Increasing Exports and Reducing Imports

• Published in: Quest Journal of Management Vol. 12; no. 2; pp. 55 - 60
• Main Author: Kadam, Vijay
• Format: Journal Article
• Language: English
• Published: Mumbai Chetana's R.K. Institute of Management and Research (CRKIMR) 01.09.2021
• Subjects: Coronaviruses; COVID-19; Economic growth; Exports; Manufacturing; Modi, Narendra; Product development; China; India
• ISSN: 0976-2000

MSME is truly a backbone of Indian Economy. The role of MSME in all types of economies is well recognized. The same is prominent in the case of developing and emerging economies where MSMEs contribute significantly to employment generation, optimum utilization of local resources, equal distribution of national income, poverty alleviation, and rural development as well as in mobilizing capital lying in hands of the private sector. The MSME sector in India is highly heterogeneous as it provides collateralfree loans, 100% credit guarantee, and MSME Loans worth of Rs.3 lakh cr, technology and infrastructure development, low rate of imports. It also provides a moratorium period of 12 months, design innovation, and product development. The purpose of this study is to create Aatmanirbhar Bharat, by increasing exports and reducing imports. Currently it contributes nearly 5% of the country's GDP, and approximately 40% of the country's exports. MSMEs manufactures a wide variety of products for domestic, as well as international markets. In terms of exports, they are an integral part of the supply chain and contribute about 40% of the overall exports. MSMEs also play an important role in employment generation, as they employ about 110 million people across the country. Interestingly, MSMEs are intertwined with the rural economy as well, as more than half of the MSMEs operate in rural India. Despite the significant contribution of the MSME sector, the sector contributes to face certain constraints like availability of adequate and timely credit, high cost of credit, collateral requirement and access to equity capital. It thus emerges that adequate, timely and affordable credit is one of the bigger issues for the MSME Sector.