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A STUDY OF VIKSIT BHARAT 2047 - ROADMAP THROUGH SMES BASED FINANCING SCHEMES AND SME-LED INDIAN ECONOMIC GROWTH.
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A STUDY OF VIKSIT BHARAT 2047 - ROADMAP THROUGH
SMES BASED FINANCING SCHEMES AND SME-LED INDIAN ECONOMIC GROWTH.
AUTHORED BY - DR. (MS.) ASHIMA NEGI
Guru Gobind Singh Indraprastha
University,
Govt. Of NCT Of Delhi, Delhi
CO-AUTHOR - MR. SAHIL S. (Student)
Maharishi Dayanand University,
Haryana.
ABSTRACT –
Purpose – This research work has been carried
out to enumerate the roadmap for India (Bharat) towards achievement of the Goal
– ‘VIKSIT BHARAT-2047’. The primary contribution of Small, Medium Organisations
towards growing Indian Economy is paralleled in this research, based on
qualitative and quantitative data.
The Indian Government Mission of
‘Viksit Bharat-2047’ is a fully encompassed roadmap and a simultaneous
Governance system towards sustainable growth of the Indian Economy, and to
strengthen its position on the world map.
Since centuries the Artha Shastra has
guided many in the ‘kutniti’ to attain self-supremacy.
Economic management for a better
social and infrastructural development by the government(s), encapsulating the
contributory role of the private partnered business models (PPP Partnered
Models), has been as tool for the country also highlighted. (Pansare, V., R., 2024).
Design/Methodology/Approach – The paper draws a comparison of
growth model of SMEs and the Financing schemes offered in the Indian financial
scenario and thereby suggests the momentum growth being witnessed in both or an
un-even one.
This paper tracks the Schemes and
norms drawn to achieve the state of ‘Viksit Bharat’ by a record target year of
2047, through mapping social and economic changes at grassroot level in the
urban and rural areas, to, macro level, for governance by the Government of
India and local bodies.
This paper researches the changes
taking place at the Viksit Bharat-2047 Dashboard, to track the performance of
various sectors and various clans of the society, state-wise and gender-wise. (Innovateindia.mygov.in
| Ideas for the Vision Viksit Bharat@2047, n.d.).
Findings – This research helps understand the
gaps in growth for SMEs and financing sector and narrow down the roadblocks,
not in favour of the Indian Growth Model towards 2047.
This research encapsulates the
break-up of various sources of contribution to achieve a ‘Viksit Bharat’
through employment generation, increase up to 20.50% stake ownership in MSMEs
by Women entrepreneurs, as of 2024. (Pansare, V., R.,2024).
Practical Implications – This paper will help the industry
and the financial sector take note of the gap in the growth orientation between
both the SMEs and the Financing sector and chalk-out more robust and
competitive financing schemes towards 2047.
The Raising and Accelerating MSME
Performance programme is growth bed for the Indian MSME horizon, since the
contributions to the programme by World Bank, helps put the MSME growth story
on the World Map, further more opening up FDI avenues, through Rs.6000 Cr.
Outlay, for the next 5-year projection(s), inviting strategic investment plans
(SIPs) for grant disbursal, encompassing women entrepreneurship guaranteed
fundings. (“Raising and Accelerating MSME Performance” (RAMP) Scheme,
n.d.).
Originality/Value – This paper enumerates the attitude
of the financing sector towards newer product/services idea(s) for financing
support and whether the consequences thereof are leading to cash crunch to
SMEs, withholding them from executing newer ideas.
India Growth Story has set target of
Exports for 2030 at 1.58 trillion USD and for 2047 an export target has been
set out at 8.67 trillion USD, suggesting an escalated growth story for both the
Indian Gross domestic Product (GDP) and the exports, in which MSMEs are mainly
setting their growth story at an exponential rise of nearly 9 times more than
the current project growth rate.
This paper visits these numbers in
form of various funding schemes launched by Government of India and the
financing sector to fuel this growth rate.
The secondary data study divulges the
increase rate of employment generated from this unique sector and the skill
development needs of the MSME sector.
|
Employment Growth in MSME Sector
|
Clearly it is witnessed that this
sector has led to a greater spike in employment numbers and has closely worked
upon the Prime Ministers’ Employment Generation Programme (PMEGP).
KEYWORDS – Viksit Bharat, small and medium
industries, financing sector, banking sector, RBI, MSMED.
JEL Code – O22, L25, G2, E51, G21, G24.
INTRODUCTION –
Concept – Inching towards Viksit Bharat by
2047, Indian policy is expansion and growth plan gaining momentum due to a
potential growth curve being witnessed in the SME sector of India, more due to
propensity towards entrepreneurial activities and a start-up culture thriving
at the horizon.
The Indian government, the central bank (READ: Reserve Bank of India) and
the banking sector at large are making sure that this wave of entrepreneurial
led SME growth is here to stay, through means of more and more customized financial
realms.
The Indian growth story has caught its wave of a new kind due the
COVID-19 Lockdown making the Concept of ‘Make In India’ take birth and
gradually shape up the Unicorn start-up ventures to thrive.
REVIEW OF LITERATURE –
Accordingly, the Viksit Rashtra is growth story in which everyone wants
to seek a share in the Indian Growth Pie, where Government is bent upon the
nurturing of this growth through schemes put together such as Quality
Upgradation Support (TEQUP) scheme, Credit Linked Capital Subsidy Scheme
(CLCSS) and the Technology , which not only are instrumental in the growth
story of India but also provide a picturesque viewpoint of the modern age
financing structure that India is going through, at the present (Pal et al.,
2021).
Such is the bent of mind of the Indian growth curve that SME upliftment
will be an onset towards the achievement of the Sustainable development goals
for the country as a whole, and help India target 2030 timeline of the SDG with
ease. It has been quite some time that India is being a witness to the world
nomenclature of the most sought countrys’ seeking foreign direct investment, so
much so that the direct route of investment was escalated from 49% to a total
of 100% investment flow from the foreign land into the country thereby almost
eliminating government intervention and seeking a speedy increase in the growth
pattern through availability of the accessible funds Pal et al. (2021).
India is in a transformative state of affairs and Indians shall gain an
advantage over the world once empowered in the field of science and technology,
emphasizing more on good governance by the government as well as corporates. Of
late India has taken very big initiatives toward this target, in terms of
Digital India, make in India and counting. With the new inception of Niti Aayog
and its charter in place, in the last decade, India has witnessed a
proliferating momentum in the wake of four pillars of a Viksit Bharat
(Developed India), namely, The Youth, The Poor, The Women, and The Farmer, all
being detrimental to the growth story of the country. Through empowerment of
Indians towards deployment of science and technology, India is inching itself
towards a sustainable economy on the piggy-back of good governance. (Singh
& Chhering, 2024)
OBJECTIVES OF THE STUDY –
This research paper focuses on from and to where our country has been and
is going. The area under study is the growth momentum of India and the sample
covers the progress of Indian metrics in terms of environment, population, GDP,
etc.
This paper encircles the changes in energy practices engaged into by the
country and how well have the indigenous schemes shaped up growth story behind
the target of Viksit Bharat 2047.
RESEARCH METHODOLOGY –
This research paper describes the changes in environment achieving
sustainability and marking achievement of relevant Sustainable development
goal, as well as w better the Vikas yojanas have panned over the past decade
and what future does the Viksit Bharat holds for Indians, in the coming 2-3
decades.
The research is a descriptive study on changes in growth patterns of
India, fuelled by the schemes of growth contributing towards increment in its
Gross domestic product (GDP).
Data Sample and Procedure of Study –
Government portals have been largely used to gather data with respect to
various schemes and subsequent changes brought in the Indian realms, in terms
of agriculture, population, upliftment of the poor and women.
Gross Domestic Product of India (Annual
% Change) –
|
Year
|
2019
|
2020
|
2021
|
2022
|
2023
|
|
GDP
|
3.9 %
|
(-)5.8%
|
9.7%
|
7%
|
8.2%
|
|
Gini Coefficient
|
0.444
|
0.460
|
0.439
|
0.435
|
0.402
|
|
HDI (India Rank)
|
129
|
131
|
132
|
134
|
134
|
|
HDI Value
|
0.645
|
0.645
|
0.633
|
0.644
|
0.644
|
(World Bank Open Data, n.d.), (Income Inequality Shrinks,
Mobility on the Rise?: SBI Research Report, n.d.)
The fall in Ginni coefficient in the past 5 years is suggestive of change
in income inequality. A ‘0’ is suggestive of complete equality and ‘1’ suggests
complete inequality for populations’ income capacity, coming from all walks of
life. Where a fall in the coefficient value is suggestive of bridging of gaps
between various income sources in the country, thereby clear evidence of
reducing inequality can be seen through the past 5 years Ginni coefficient.
Quintile Disparity of Income in
India –
|
|
2015-16
|
2020-21
|
% Change
|
|
Poorest Quintile Population
|
1.37
|
0.65
|
-52.6
|
|
Lower Middle Quintile Population
|
1.85
|
1.25
|
-32.4
|
|
Middle Quintile Population
|
2.25
|
2.05
|
-8.9
|
|
Upper Middle Quintile Population
|
3.01
|
3.22
|
7.0
|
|
Richest Quintile Population
|
5.26
|
7.31
|
39.0
|
|
All India Average
|
2.98
|
3.23
|
8.4
|
|
Personal Disposable Income (Rs.Billion)
|
83,574
|
99,184
|
18.7
|
UDYAM Registrations -
|
Year
|
2021
|
2022
|
2023
|
|
Registrations
|
28,84,845
|
51,90,949
|
69,53,522
|
(Udyam Assist Platform Launched on 11.01.2023 to Bring Informal Micro
Enterprises Under the Formal Ambit for Availing Benefits Under Priority Sector
Lending, n.d.)
HYPOTHESIS FOR TESTING –
HYPOTHESIS #1 -
H0 – Non-impact of Niti Aayog policies towards financial and
economic growth of India.
HA – Impact of Niti Aayog policies towards financial and
economic growth of India.
There is clear and positive increase in the personal disposable income
across India, with a 18.7% jump signally a rise income in Indian households,
with an all-India average witnessed the increase by 8.4%. Primary impact of
schemes can be seen in the upper middle and rich class of income groups
The slump in the poor and lower income groups is being witnessed due to
COVID-19 Lockdown and a fall in GDP in the said duration is in congruence with
a slump in the poor and lower middle income quintile income.
HYPOTHESIS #2 -
H0 – No role of Government Policies towards positive changes
in GDP Of India.
HA – Role of Government Policies towards positive changes in
GDP Of India.
Human development index (HDI) is a geometric mean of Health, education,
Income index of a country, which for India in the past five years is showing a
slight change, suggesting that there is no such fall in the health, education,
Income indices of the country, thereby suggesting strong, virtuous government
policies at place.
HYPOTHESIS #3 -
H0 – Non-impact of Government Schemes for MSME growth in
India.
HA – Impact of Government Schemes for MSME growth in India.
Total UDYAM registrations in India in 2023, for various states and union
territories stand at 69,53,522 since the launch in 2020.
(Range of MSME Investments – Government of India annual report 2022).
It can be concluded from above that there is a significant change in
contributions of investment in each of the medium, small, micro enterprises in
India. Furthermore, suggesting the growth story of the country through this
sector.
Number of Udyam’s registered in micro enterprises stood at 1,51,161,
whereas in medium enterprise sector it is at 9909 Udyam enterprises registered.
(Turnover Range of MSME– Government of India annual report 2022).
Hence it can be cited from above data that the investments made in the
MSME sector and the range of turnover generated has seen a positive change.
Thereby rejecting the Null Hypothesis and acceptance to the substantive
hypothesis.
DISCUSSION
–
Over the past 5 years the number of MSME
growth backing schemes launched by the Government of India, Ministry of MSME
have risen to 20, including Credit Linked Capital Subsidy Scheme, Credit
Guarantee Scheme, Public Procurement Policy for MSEs, Scheme of Fund for
Regeneration of Traditional Industries (SFURTI), Micro and Small Enterprises
Cluster Development Programme (MSE-CDP), Credit Guarantee Scheme for Micro
& Small Enterprises (CGTMSE), Prime Minister's Employment Generation
Programme (PMEGP), and the Procurement and Marketing Support (PMS) scheme.
|
Ministry of Statistics & Programme Implementation, the
share of MSME Gross Value Added (GVA) in all India Gross Domestic Product
(GDP)
(CONTRIBUTION OF MSMEs TO THE GDP, n.d.)
|
Clearly, the above charted data reflects a significant amount of MSME
presence in the GDP of our country, which is on an increase. The outright
increase after the COVID-19 slum in the MSME gross value added suggests that
the sentiment in MSME is strong and the sector is capable enough to contribute
into GDP growth, immediately and does not require a long time period to
overcome any hurdles or recession, if any.
|
Share Of MSME Exports in All India Exports (Data
Dissemination Portal of Directorate General of Commercial Intelligence and
Statistics (DGCIS))
(CONTRIBUTION OF MSMEs TO THE GDP, n.d.)
|
It can be clearly concluded from the above data that the export from
India is being guided towards an increase with a dominant support from the MSME
contribution.
The exports contribution coming from the MSME sector to the total exports
being done by India witnesses a significant percent of contribution, the slum
although being a resultant of COVID-19 lockdown, thereby suggesting the
strength in the MSME sector to contribute to India growth story, and widely
becoming part of major exporting sector of the country and thereby helping
India achieve the target of 2047- Viksit Bharat.
With the outright support from the Credit Guarantee Fund Trust for Micro
and Small Enterprises with the Credit Guarantee Scheme of Rs.500 Lacs, with no
collateral, is a sure shot encouragement to the new entrepreneurs to set shop
for growth story of a ‘Viksit Bharat’.
Where schemes like the ‘PM Vishwakarma’ since its launch in September
2023, has engaged into nearly 18 trade areas, to increase the artisan-based
exports from the country.
With the inception of the Self-Reliant India Fund, and a 50,000 Cr.
Infusion into the MSME sector, the government of India clearly plans to take
the advantage of the presence of MSMEs in the economy a way forward, is another
march to Indian growth story, closely after the refurbished MSMEs
classification.
CONCLUSION
–
Based on the data presented from the secondary sources and government
portals, hypothesis discussions suggest that the Indian economic growth story
is clearly being driven because of MSME sector, leading the export story of
India through the testing times of COVID-19 lockdown and as well the recession
duration post lockdown.
With 51% MSME belonging to the urban areas and 49% to the rural areas,
the growth story is not pre-dominantly a result of only urban location(s) and
resources but also the contribution(s) is a large and fair contribution coming
in from the rural location(s) in the country.
|
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|
Article Information
A STUDY OF VIKSIT BHARAT 2047 - ROADMAP THROUGH SMES BASED FINANCING SCHEMES AND SME-LED INDIAN ECONOMIC GROWTH.
Authors: DR. (MS.) ASHIMA NEGI, MR. SAHIL S.
- Journal IJLRA
- ISSN 2582-6433
- Published 2025/03/17
- Issue 7
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