| | FEBRUARY 202619One major obstacle faced is the lack of awareness when it comes to upgrading technology, but this issue can be resolved through effective training programs and skill development initiatives. Access to low-cost credit is essential for MSMEs, particularly with the decreasing participation of foreign banks in approving loans for the industryeconomic sectors, providing a wide array of products and services to cater to both national and internation-al markets. Indian SMEs, in particular, have played a significant role in creating job opportunities with relatively low capital investments in comparison to larger industries. Challenges EncounteredMSMEs face various challenges such as accessing essential raw materials, skilled labour, and other necessary inputs, hindering their ability to manufacture products competitively. They are as follows:· Small and Medium Enterprises grapple with difficulties when it comes to obtaining crucial raw materials, qualified workforce, and other essential resources, which ultimately impede their capacity to produce goods in a competitive manner. · Despite the increase in the number of MSMEs, the lack of proper infrastructure results in limited production capabilities and higher production expenses for these enterprises. · Small and medium-sized enterprises face tough competition from large multinational companies who provide high-quality goods at affordable prices in the global market. · Small and medium-sized enterprises face challenges in securing adequate funding from banks due to the high interest rates on loans, which can range from 7.75 percent to 15.25 percent. · Small business owners are not familiar with modern manufacturing techniques and advanced technologies, which is impeding technological progress. · Insufficient government support and a lack of exposure to modern production techniques are factors that lead to a skills deficit among small business owners. · Many small and medium enterprises struggle to make use of various marketing channels in a way that leads to poor sales outcomes, primarily due to ineffective advertising tactics. It is crucial to boost employment opportunities for economic development by improving the performance of small and medium-sized enterprises (SMEs) in urban areas.· Effective training programs are essential for encouraging women to take part in the workforce and entrepreneurship, whether in urban or rural settings. · The necessary measures must be taken by the Indian Government to promote the growth of small and medium-sized businesses. · It is crucial to offer adaptable bank loans and interest rates that meet the unique requirements of a business owner. · Entrepreneurs in urban and rural areas must receive vital training in technology and innovation to guarantee their progress and triumph. Future AheadThe sector of Micro, Small, and Medium enterprises is seeing a fast expansion, leading to more employment prospects. Collaborations and alliances are being established with NGOs, government bodies, and universities to support entrepreneurs and ensure the successful execution of governmental regulations. However, despite these initiatives, MSMEs are currently encountering a range of obstacles. Furthermore, initiatives such as the online platform Champions, which offers non-tax benefits for MSMEs looking to improve their status, and the Raising and Accelerating MSME Performance program, have been put in place to nurture the growth of the sector. The Indian government has recently implemented significant measures to further assist MSMEs, including the Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), as well as Rs. 50,000 crore equity infusion through the MSME Self-Reliant India Fund. The decision to include Retail and Wholesale trades within the MSME category reflects this commitment. The future looks bright for India's MSME sector and it will play a key role in the country's economic progress moving forward.
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