New Delhi, June 27 (IANS) A robust micro, small, and medium enterprises (MSME) ecosystem is not only important but also essential for the country’s sustainable economic development, President Droupadi Murmu said on Friday.

Addressing the ‘MSME Day’ celebration in the national capital, she said that MSMEs are a strong pillar of the country’s economy.

“They contribute significantly to GDP and promote innovation at the grassroots level. These enterprises generate more employment opportunities at a relatively low cost of capital. Most importantly, these enterprises generate employment in rural and backward areas,” President Murmu told the gathering.

She said that there is no doubt that the MSME sector is playing an important role in the progress of the country.

“However, this sector also faces many challenges, the major ones among them being the problem of finance, competition from big corporations, lack of latest technology, lack of raw material and skilled workforce, limited market and delayed payment,” the President emphasised.

Realising the importance of MSMEs and their problems, the government has taken several policy initiatives.

These include revision of classification criteria for MSMEs, an increase in credit availability, encouragement of central ministries, departments and central public sector enterprises to procure at least 35 per cent of their annual procurement requirements from micro and small enterprises, skill development of artisans under the PM Vishwakarma Yojana, etc.

President Murmu was happy to note that these efforts have led to a very rapid increase in the number of registered MSMEs. She expressed confidence that the Online Dispute Resolution Portal for MSMEs will prove to be important in cases of delayed payments.

“Innovation is very important for the sustainability of MSMEs. Promotion of grassroots innovation by MSMEs can provide affordable solutions to local issues from local resources,” she stressed.

The participation of women in the MSME sector has increased significantly in recent years.

“The participation of more and more women in this sector is essential for the all-around development of the country,” said President Murmu, urging young women to set up enterprises and become self-reliant.

–IANS

na/vd