Are MSMEs Getting The Support They Need? Sector Leaders Demand Action; Karnataka DCM And Union Minister Assure Solutions
Deputy Chief Minister DK Shivakumar assured industry leaders that policy reforms are underway to address the MSME issues and strengthen their ecosystem.
Published : May 30, 2025 at 7:34 PM IST
Bengaluru: As India pushes to become a global economic powerhouse, questions are being raised about whether Micro, Small, and Medium Enterprises (MSMEs) are getting the policy support they need. Speaking at the India MSME Conclave 2025 in Bengaluru, PC Rao, industrialist and Director of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), laid out both the achievements and the challenges facing this critical sector.
“MSMEs contribute nearly 45% to India’s GDP and are the largest generators of employment,” Rao noted. “They are not just small-scale producers. They are key suppliers to sectors like defence, aerospace, and private engineering industries.”
Despite this contribution, Rao emphasized the need for a more focused and strategic approach. He called for the creation of a separate ministry dedicated to MSMEs. “A dedicated ministry can help address our specific needs and work on developing this sector, which forms the backbone of the larger industrial ecosystem,” he said.
The three-day India MSME Conclave 2025, jointly organized by FKCCI, Karnataka Small Scale Industries Association (KASSIA), and the Peenya Industries Association, aims to support new-age entrepreneurs, facilitate networking, and help existing businesses overcome operational hurdles.
On the sidelines of the event, representatives from various industry bodies met with central and state ministers to discuss pressing concerns. Rao said, “We’ve submitted our demands and outlined the infrastructural and financial issues MSMEs are grappling with. We hope for timely solutions.”
One area of concern is the Peenya Industrial Area, considered the largest industrial zone in South Asia with over 16,000 small-scale units. According to Rao, the area suffers from poor road conditions, water scarcity, inadequate fire and police services, and lacks basic infrastructure support.
The issue of manpower was another key highlight. Rao acknowledged the recent revision in minimum wages but raised concerns about disparities. “Minimum wages in Karnataka are now the highest in the country. There needs to be either parity with other states or a common national structure to ensure fair competition,” he said.
Rao also urged the government to focus on skilling youth. “We need more industry-ready workers. Upskilling should be a priority,” he added.
He stressed the need for policy reforms that simplify compliance and ease of doing business. “Policies must not just regulate but also support employers and industries. Only then can we expect MSMEs to generate more employment and contribute to economic growth.”
Deputy Chief Minister DK Shivakumar and Union Minister for Micro and Small Scale Industries Shobha Karandlaje, who attended the event, assured industry leaders that policy reforms are underway to address these issues and strengthen the MSME ecosystem.
The conclave, held from May 30 to June 1, is hosted with 250 exhibitors by stakeholders, and is expected to attract industrialists, new age entrepreneurs to fostering collaboration, innovation, and policy dialogue at a time when MSMEs are demanding more than just words - they want results.
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