NEW DELHI: MSMEs need to understand the importance of integration with global value chains which are driving the trade currently, Union minister Pratap Chandra Sarangi said on Saturday. The Minister of State for MSME said that at a present lot of trade is happening in the form of global value chains and MSMEs should understand the importance of integration with those chains and upgrade themselves accordingly.The integration of MSMEs is critical for the financial viability of global value chains as not only do they provide a low-cost way of operations but also with their geographical reach and innovation capabilities, MSMEs form the cornerstone for fostering global economic growth.In the process of integration to the global value chain, MSMEs face many challenges, therefore efforts must be made to strengthen the sector locally to enable their penetration and reach globally, he said at the Assoham webinar.The ministry has undertaken several initiatives to modernize the sector during the last year. These include putting in place financial support mechanisms through Fund of Funds, broadening definition of MSMEs, introducing IT based Champions platform to provide solutions to issues of MSMEs."The role and potential of Indian MSMEs along with the need to improve their efficiency, productivity and quality needs to be viewed in the context of a globally competitive landscape," he added.
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