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Home National

Unlocking India’s Potential: How MSMEs Drive Economic Growth and Sustainability

September 20, 2025
in National, Politics
Reading Time: 3 min

Addressing an insightful workshop, Minister for MSMEs Kondapalli Srinivas powerfully affirmed that Micro, Small, and Medium Enterprises (MSMEs) are the undisputed backbone of India’s thriving economy. He highlighted their monumental impact, revealing that these crucial businesses drive nearly 45% of the nation’s exports, provide livelihoods for over 11 crore individuals, and contribute a significant 30% to the country’s Gross Domestic Product (GDP).

The Minister’s remarks were delivered at an awareness workshop focusing on ESG (Environmental, Social, and Governance) principles and sustainable growth strategies for MSMEs. This pivotal event, held on Saturday, was a collaborative effort by the FICCI Andhra Pradesh State Council, the FICCI Centre for Sustainability Leadership, and the Visakhapatnam Chamber of Commerce & Industry (VCCI). During his address, Minister Srinivas lauded recent national reforms, particularly GST rationalisation, which have demonstrably eased the burden on both MSMEs and the middle class, simultaneously fostering robust industrial expansion.

Emphasizing a forward-looking approach, Minister Srinivas stressed the paramount importance of integrating Environmental, Social, and Governance (ESG) principles directly into MSME operations. He articulated that this strategic shift is not merely a compliance exercise but a critical pathway to bolster competitiveness, ensure long-term sustainability, and actively attract essential global investments into the sector.

Delving into state-level efforts, Minister Srinivas shared Chief Minister N. Chandrababu Naidu’s vision to fortify the MSME ecosystem. This ambitious plan involves streamlining processes for enhanced ease of doing business and establishing dedicated MSME Parks across all 175 Assembly Constituencies. A particular emphasis is placed on rural areas, aiming to significantly boost local employment and lower operational costs for these enterprises.

Further elaborating on the State government’s proactive steps, the Minister detailed several ongoing initiatives. These include setting up cluster-based Common Facility Centres (CFCs) tailored for diverse sectors like gold, pharmaceuticals, and textiles. An innovative ecosystem is also being cultivated by linking universities, financial institutions, venture capitalists, and government bodies with the renowned Ratan Tata Innovation Hub. Additionally, there’s a strong push for adopting clean and green energy practices within manufacturing, alongside proposed initiatives like the Chief Minister’s Employment Generation Programme (CMEGP), designed to ignite micro-entrepreneurship at the grassroots level.

To ensure robust ground-level support, Industrial Promotion Officers (IPOs) will be strategically placed in every Assembly Constituency, while Chambers of Commerce will be officially empanelled at the district level. This comprehensive approach guarantees hands-on assistance, guidance, and efficient last-mile delivery of services to MSMEs across the state. Minister Srinivas proudly affirmed the State government’s unwavering commitment to transforming Visakhapatnam into a premier global investment hub, evidenced by its upcoming hosting of significant international and national events such as the GCC Summit, India E-Governance Summit, and Global Partnership Summit.

He concluded by reiterating the government’s steadfast commitment to prioritizing employment generation, fostering startup culture, and driving industrial innovation. These efforts are all geared towards empowering MSMEs in Andhra Pradesh to evolve into truly sustainable and formidable global competitors. Adding to this, Thammireddy Sivasankara Rao, Chairman of the Andhra Pradesh MSME Development Corporation, underscored the critical necessity of tackling pressing environmental challenges. He specifically mentioned climate change, industrial pollution, effluent treatment, and pesticide residues, highlighting how these factors now play a decisive role in global trade dynamics and market competitiveness for businesses.

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