MSME's Challenges: Insights from Telangana

By Chandan Chowdhury, Pratap Sundar, Rajiv Bhargava, Kaveri Kala, Aastha Singh, Matrika Shukla, Anurag Sobti
CII Telangana Chapter | March 2024

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Citation

Chowdhury, Chandan., Sundar, Pratap., Bhargava, Rajiv., Kala, Kaveri., Singh, Aastha., Shukla, Matrika., Sobti, Anurag. MSME's Challenges: Insights from Telangana CII Telangana Chapter scholar.google.com/citations?view_op=view_citation&hl=en&user=IiONWy4AAAAJ&citation_for_view=IiONWy4AAAAJ:2osOgNQ5qMEC.

CII Telangana Chapter, 2024

Abstract

Over the years, MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy. MSMEs contribute to approximately 30% of the Country's GDP, 36% of the manufacturing output and 43.6% of exports. MSMEs provide the largest share of employment after agriculture and hence, the development of MSME sector can contribute enormously to the socio-economic development of the country. Recognizing the transformative potential of MSMEs, Telangana has strategically positioned the development of this sector as a catalyst for job creation and regional equilibrium. The MSME sector in Telangana manufactures a variety of products with a high concentration of Micro and Small units belonging in the Sectors of food, mineral and building materials, drugs and pharmaceuticals, fabricated materials, trading and service sector. Telangana has identified development of MSMEs as a catalyst for job creation and balanced regional development. Indian School of Business and CII Telangana chapter embarked on this study to assess the current state of MSME in Telangana. The study explored the challenges faced by MSMEs, sustainability, Government support to MSMEs and innovation strategies followed by MSMEs in the state of Telangana. The report identifies some of the interesting facts about the key barriers for MSME’s, digital technology up-gradation status, innovation culture at MSMEs, multifarious implementation of policies and regulations to promote development of MSME’s in the state. The study is an outcome of both primary and secondary research. Based on detailed survey findings from the industry leaders and elaborate review of government reports and website data, the recommendations are laid out for Government and policymakers for providing a roadmap for the development of MSMEs in the State of Telangana. A concerted effort of both Government and industry will promote the emergence of an inclusive ecosystem to develop vibrant MSME sector.

Chandan Chowdhury is a Professor of Operations Management and Information Systems (Practice) at the Indian School of Business (ISB). He is also the Executive Director of the Munjal Institute for Global Manufacturing and the Punj-Lloyd Institute of Infrastructure Management at ISB.

Additionally, Professor Chowdhury serves as a Member of the Board of Governors at IIM Sambalpur and Lamrin Tech Skills University.

Before joining ISB, Professor Chowdhury worked in the corporate sector and was associated with three major multinational companies, where he held positions such as Managing Director and Country Manager. He served Dassault Systèmes for over five years, initially as Managing Director, India Geo, and subsequently as Vice President, Global Affairs.

During his last academic appointment, he was Professor, Dean (Academy), and Chairman of the Board of Research at IIM Mumbai (formerly known as NITIE- National Institute of Industrial Engineering, established as a joint initiative between the United Nations and the Government of India in 1963).

He is passionate about leveraging technology to make the world a better place. He served as an expert panel member at NITI Aayog (National Institution for Transforming India, Government of India), helping to develop the Manufacturing India@2035 roadmap. He is also Chairman of the Technical Committee (Management and Productivity) at the Bureau of Indian Standards.

Professor Chowdhury is currently leading several research projects of national importance, such as ‘A Decade of Infrastructure Development in India: trends and Insights’, ‘Challenges and Opportunities for accelerating MSME’s growth’, ‘Making India a Skill Capital of the World,’ ‘India’s readiness for the 4th and the 5th Industrial revolution,’ and ‘Future of Jobs’.
He holds an MS in Mechanical Engineering from the Budapest University of Technology and Economics, and a PhD from the Hungarian Academy of Sciences and Budapest University of Technology and Economics.

He holds an MS in Mechanical Engineering from the Budapest University of Technology and Economics, and a PhD from the Hungarian Academy of Sciences and Budapest University of Technology and Economics.

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