MSMEs need to integrate with global value chains, is a valuable statement by the Union Minister. The Minister highlights that MSMEs need to understand the importance of integration with global value chains.In this article, we will read about the Union Minister’s recommendations regarding MSMEs need to integrate with global value chains.
MSMEs need to integrate with global value chains
The MSME Minister of State has stated that so much business is taking place now in global value chains and that MSMEs should recognize and update their business to include these networks.
Furthermore, he states that The integration of MSMEs is essential to global value chains’ financial sustainability and MSME because their geographic coverage and their capacity to innovate will provide MSMEs with tools and knowledge for a low-cost way of operations.
Minister also suggests that as the global value chains (GVCs) increase and the value-added capacities of MSMEs improve, MSME also should establish proper procedures. Lastly, Without fear of competition, the systems shall enable these MSMEs to build their value chains to succeed in the long run.
Know about Global Value Chains
Global value chains (GVCs) simply mean international production sharing. For instance, it is an event where production is split into small production activities. These production tasks then get completion in various nations. The benefits of MSMEs integrating with global value chains may include – lower transport costs, improvements in data analysis and innovations in logistics etc.
Know about MSME Registration
MSMEs, short for Micro, Small, and Medium Enterprises, contribute significantly to any country’s socio-economic development. These MSMEs become successful after getting MSME Registration and implementing guidelines set by MSME Ministry. In India, mainly, MSMEs have gained increasing significance because of the contribution they make towards India’s GDP and exports. Therefore, having MSME Registration for any micro to medium business is very beneficial.
Further Notification by MSME
The minister says that The MSME Ministry has undertaken several initiatives to modernize the sector during the last year. These initiatives have helped MSMEs face many challenges. Besides, it strengthened the industry regionally to facilitate their entrance into the global market.
In addition, The Ministry is also providing financial support mechanisms through Fund of Funds, expanding the representation of MSMEs, advancing an IT-based platform to offer resolutions to problems of MSMEs. Therefore, MSMEs can further boost their progress by collaborating with global value chains.
Advantages of MSME or Udyam Registration?
The government, as well as the banking sector, have several benefits. The following are a few of the most notable.
- The low-Interest rate on Loans
- In just 59 minutes, you will get a loan.
- There will be no billing delays.
- Tender Eligibility, Credit Support Schemes, and Low Registration Fee for Trademark Registration
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