CII-PwC release study on Gujarat MSMEs

A joint study released by PricewaterhouseCoopers and CII, titled ‘The Gujarat vision: Making MSMEs globally competitive’ analyses how the MSME’s in Gujarat are undergoing a significant transformation with several large scale investments being undertaken by the public and private sector players. The state has also given incentives by providing interest subsidies for Small and Medium Enterprises (SME’s) setting up new projects, technology upgradation, research and development and quality certification. Gujarat also aims to provide marketing support by providing assistance to industry associations.

Anand Dikshit, executive director of PricewaterhouseCoopers said, "The report highlights the present scenario of MSMEs in Gujarat, their significance and the state’s vision for them. There are a number of opportunities for the MSMEs in sectors like defence, railways, automotive and foundry. However, the MSME sector isn’t bereft of its share of challenges as it struggles with working capital shortages and looks for greater support from the financial institutions, and credit rating agencies."

The study, probes two key themes– priorities for the Gujarat MSME industry and key recommendations for the Gujarat MSME industry.

The report also brings to light the fundamental challenges faced by the MSME sector such as lack of financial assistance and credit availability, market orientation, accessibility to markets and technology as well as lack of availability of risk capital.

Rajendra Shah, chairman, MSME Linkages 2010 and managing director, Harsha Engineers Ltd. opines,"There is a fundamental shift that is opening up new business opportunities for the industries in the last couple of years. The Gujarat vision is to make MSMEs globally competitive and industries are working hard to achieve that."