MSMEs Are The True Builders Of India’s Economic Resilience: LG Sinha

India’s economic growth and job creation are deeply anchored in the strength of its Micro, Small and Medium Enterprises (MSMEs), Jammu and Kashmir Lt Governor Manoj Sinha on Wednesday said, stressing the need to create an ecosystem that enables them to compete globally while promoting sustainability and inclusive growth.

He also called upon the industry leaders and all the key stakeholders to make their significant contribution in building a "terror-free, corruption-free, merit-based and prosperous society".

Delivering a keynote address at the 2nd edition of the ICC MSME Conclave here, the Lt Governor highlighted the transformative role of MSMEs, the rise of Nano Global Capability Centres (GCCs), and the centrality of technology-led growth in shaping India’s economic future.

Sinha underscored that India’s economy stands at a defining crossroads where agility, innovation, and technology are rewriting the rules of enterprise.

He said the theme of the conclave- “Shaping the Future of MSMEs, Nano GCCs & Technology-led Growth” - is timely and visionary.

He reaffirmed that MSMEs are powering employment, driving exports, and nurturing entrepreneurship across the nation.

“MSMEs are contributing 31.3% to GDP and nearly half of India’s exports. They are also the second-largest provider of employment after agriculture. MSMEs are the heartbeat of our economy and the true builders of India’s resilience and self-reliance,” the Lt Governor said.

He highlighted the emergence of GCCs, where small, specialized teams deliver high-value capabilities once reserved for large corporations.

“I strongly believe that this is democratisation in its truest sense. It really means that a mid-sized enterprise in a tier-two city can now build, own, and scale world-class technology capability on its own terms. And behind all of this is technology as the very engine of growth. Artificial intelligence, automation and digital infrastructure are compressing timelines, lowering barriers, and opening doors that were once closed to all but the largest players.

"This gives cities like Jammu, Srinagar a new sense of confidence and I believe today's conclave is more than just fire-side chat. It is a call to action. A call to reimagine what our MSMEs can become and to embrace the nano GCC model as a genuine pathway to global relevance. It is a call to place technology at the very heart of India’s next chapter of inclusive growth,” Sinha said.

He said Jammu Kashmir is a vibrant example of all-round transformation in the country. "Since 2021, investments worth Rs 5,824 crore in FY 2025–26 alone marked a 13-fold increase compared to pre-2021 averages. Over four years, investments exceeded those made in the preceding 70 years. Start-ups rose from 69 in 2020 to 1,305 in FY 2025–26, while Udyam registrations surged from 24,000 in 2021 to 6.16 lakh this year." The Lt Governor also outlined four pressing challenges for MSMEs including affordable credit, technology upgradation, and supply-chain integration to ensure market access and brand-building for small entrepreneurs.

He also called for administrative reforms, wherever required to eliminate the red tape to create an enabling environment.

The Lt Governor called for a forward-looking roadmap with sustainable trade that will encourage MSMEs to adopt green technologies and renewable energy.

He also stressed the formalisation of micro industries to expand institutional credit access.

“The fourth objective is to strengthen export competitiveness, and I believe that this opportunity is especially significant for J&K. Our climate and distinctive cultural and traditional production chains provide us with an exceptional position in the export sector. Therefore, initiatives such as 'One District, One Export Hub' need to be promoted on a large scale," he said.