Poor infrastructure a big hurdle to MSME growth

The leading issue that is of major concern to MSMEs from the point of view of their growth and development is non-availability of infrastructure support, according to the Small Industries Development Bank of India (Sidbi) Report on Micro, Small and Medium Enterprises Sector, 2010.

This finding is the result of a survey of 200 MSMEs (42 micro, 114 small and 44 medium enterprises) from all over India, primarily from the cities of Chandigarh, Hyderabad, Jamshedpur, Surat, Rajkot and Bangalore. The survey was conducted through a questionnaire and on-field discussions and interviews with MSMEs.

Interviews and discussions were also done with MSME associations and trade chambers from different parts of India, representing various sectors, to generate a sector-wide response on the expectations of MSMEs.

Other issues of major concern to MSMEs are: Non-availability of adequate and timely credit; inability to introduce greater automation in production facilities to achieve cost competitiveness; lack of adequate knowledge of government schemes with respect to adoption of information and communication technology (ICT); non-availability of skilled personnel; constraints in adopting energy efficiency in production processes; lack of support for brand building and inadequacy of requisite R&D support.