PM Modi calls for more attention to MSMEs at G20 trade ministers' meet

In the past nine years, due to the government's sustained efforts, India has ascended to become the fifth largest global economy

Prime Minister Narendra Modi on Thursday called for greater attention to micro, small and medium enterprises (MSMEs) that account for 60-70 per cent of employment and contribute 50 per cent to the global gross domestic product (GDP).

India has become the fifth-largest global economy as a result of the government’s sustained efforts over the past nine years and has also moved away from “red tape to red carpet”, he said. The government is committed to making India the third-largest global economy in the next few years, he said.

Modi was speaking virtually at the opening of the two-day G20 Trade and Investment Ministerial in Jaipur. The meeting was preceded by the fourth and last Trade and Investment Working Group (TIWG) meeting under India’s G20 Presidency on August 21-22.

“We must pay more attention to MSMEs, given their key role in the global economy... They need our continued support. Their empowerment translates to societal empowerment,” Modi said.

The PM also suggested the G20 trade ministers work collectively to ensure equitable competition between large and small sellers as there are challenges in the fast growing cross-border e-commerce. He also emphasised on the need to address the problems faced by consumers in fair price discovery and grievance handling mechanisms.

He said India was able to forge a consensus to safeguard the interests of millions of farmers and small businesses at the World Trade Organization (WTO).

“Current global challenges, from the pandemic to geopolitical tensions, have tested the world economy. At G20, it is our responsibility to rebuild confidence in international trade and investments. We must build resilient and inclusive global value chains that can withstand future shocks. In this context, India's proposal to create a Generic Framework for Mapping Global Value Chains is important. This framework aims to assess vulnerabilities, minimise risks, and enhance resilience,” Modi said.

During the working group meetings that started in March, five priority areas were identified – trade for growth and prosperity, resilient trade and global value chains, integrating MSMEs in world trade, logistics for trade, and WTO reforms.

Even as meetings of the officials from all the G20 nations have been making good progress, uncertainty continues whether there will be a joint communique at the end of the ministerial meeting on Friday. This is because of the past trends of not having a joint communique due to diplomatic tussles between the West and Russia over the war in Ukraine.