Topic: MSME
Q6. What structural challenges limit the competitiveness of Micro, Small and Medium Enterprises in India? Outline the strategic reforms needed to build globally competitive MSMEs. (10 M)
Difficulty Level: Easy
Reference: InsightsIAS
Why the question
MSMEs are in national focus due to credit gaps, technological lag and global competitiveness concerns, making structural reform a key economic priority.Key demand of the question
The question requires identifying the core structural constraints faced by MSMEs and outlining strategic reforms that can strengthen their global competitiveness while keeping both parts distinct and logically connected.Structure of the answer:
Introduction
A brief two-line introduction highlighting the scale of MSMEs in India’s economy and the persistence of structural limitations hindering productivity and competitiveness.Body
- Structural challenges: Briefly indicate issues such as finance constraints, outdated technology, regulatory burdens, supply chain weaknesses, and market access limitations.
- Strategic reforms: Briefly suggest measures like expanding formal credit, promoting technology upgradation, easing compliance, strengthening clusters, and improving value-chain integration.
Conclusion
A short, forward-looking closure emphasising how targeted reforms can transform MSMEs into globally competitive drivers of industrial growth.
