Reviving MSMEs in Northeastern States: A Five-Point Strategy

A study by the MSME Export Promotion Council reveals over 25% of micro and small enterprises in Northeastern states are struggling. It suggests a five-point strategy for reviving these units, addressing challenges like finance, technology, and infrastructure. Recommendations include high-powered committees, skill development, and a 'Single Window' system.

A recent study by the MSME Export Promotion Council (EPC) highlights that more than 25% of micro and small enterprises in the Northeastern states are facing survival challenges. It proposes a five-point strategy to rejuvenate these businesses and support new startups, with areas of focus including affordable finance, technology adaptation, and infrastructure improvement.

Speaking at the report's release in New Delhi, MSME EPC chairman Dr. D S Rawat noted that although many startups in the region have generated employment, they still face significant crises owing to a lack of support from larger units or institutions.

The EPC recommends forming high-powered committees at the state government level to prioritize MSME challenges. They also advise creating a roadmap that promotes skill development, establishing showrooms for MSME products, and linking enterprises with R&D centers and global marketing agencies.

The study underscores the necessity of a novel financing model involving the DoNER ministry, multilateral institutions, and private entities to make the industry more attractive and spur entrepreneurship. The proposed 'Single Window' system seeks to streamline processes for MSMEs and lure private investments.

Key obstacles for these enterprises include geographical isolation, poor transport infrastructure, limited private sector involvement, and inadequate financial and infrastructural facilities. The report calls for collaboration with innovative firms, encouraging private sector investment via tax-incentivized debt instruments, and developing networks of service providers to deliver tailored support in technology, product development, and marketing.

(With inputs from agencies.)