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India has over 6.5Cr MSMEs, of which almost 99% are micro-enterprises with a turnover of less than 5Cr. These MSMEs employ over 11Cr people accounting for almost a quarter of the workforce. They also account for ~48% of exports, although this is likely overstated since the calculation is based on sectors that were earlier reserved for small scale but have now been de-reserved.
MSMEs have the potential to make an even more meaningful contribution to the Indian economy, particularly on the export front, which is essential for accelerated economic growth. However, a few key structural barriers prevent them from realizing their full potential. FED along with NITI Aayog is undertaking a structured study to fully understand the barriers to MSMEs realizing their export potential.
Project Deliverables
The study will lead to the creation of a comprehensive report covering the following:
• Current MSME landscape, particularly from an exports perspective
• High potential opportunities for MSMEs for exports with a focus on Micro and Small
• Key barriers to exports for MSMEs
• Policy landscape across central and state governments
• Current support ecosystem beyond government for MSMEs
• Policy recommendations for the government to help propel MSME exports
• Recommendations for the broader ecosystem for MSME exports proportion
Policy Research
Data Analysis
Conducting surveys
Report Writing
Foundation for Economic Development (FED) is a Delhi-based non-profit organization that aims to bring about a sustained and broad-based economic growth of over 10% in India. The evidence clearly shows that economic growth is the best tool to lift people out of poverty and improve the quality of life for everyone. Until 1991, India’s poverty rate remained unchanged at ~50%. Post reforms, poverty was reduced from ~50% to ~20% with 35 crore (350 million) fewer people living in abject poverty. Since 2010, sustaining fast growth has been challenging as the easy gains have been realized. It is critical for India to maintain a growth rate of over 10% for long periods of time if we want Indians’ quality of life to improve rapidly and sustainably.
FED will identify select sectors of the economy which have the highest potential for generating incremental growth and jobs and then work with policymakers to make it happen. The organization has Dr Aravind Panagariya, Naushad Forbes, Gurcharan Das, Jerry Rao and Ashish Dhawan on its advisory board who are helping shape the thinking and execution.
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