NewKerala.com

India's Micro-Enterprises Must Boost Trade Skills for Growth: CEA Nageswaran

Chief Economic Advisor Dr V Anantha Nageswaran emphasized that India's micro-enterprises must develop strong trade skills to drive inclusive growth and integrate into global value chains. Speaking at the CII Annual Business Summit, he urged entrepreneurs to invest in their own skills and ensure employee training in areas like accounting and inventory. The government has approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 to provide financial support to businesses affected by the West Asia crisis. The scheme offers enhanced credit guarantees to encourage lending to MSMEs and other sectors.

Key Points: India's Micro-Enterprises Need Trade Skills for Growth: CEA

  • CEA stresses micro-enterprises need strong trade skills for growth
  • MSMEs should be innovation leaders, not technological backwaters
  • Entrepreneurs must invest in own skills and employee training
  • Cabinet approves ECLGS 5.0 to support businesses amid West Asia crisis
2 min read

India's micro-enterprises must develop strong trade skills to propel growth: CEA Nageswaran

CEA V Anantha Nageswaran says micro-enterprises must develop strong trade skills to integrate into global value chains and propel inclusive growth.

"India's micro-enterprises must evolve in the same direction. The most critical requirement for this is the development of strong trade skills. - CEA Dr V Anantha Nageswaran"

New Delhi, May 12

The future of India's growth will be determined by how inclusively micro-enterprises are enabled to adopt, adapt, scale, and compete, Chief Economic Advisor Dr V Anantha Nageswaran, said on Tuesday.

Addressing a session during the 'CII Annual Business Summit 2026' here, Nageswaran said in many leading economies, MSMEs are not technological backwaters but often at the forefront of innovation and technological advancement.

"India's micro-enterprises must evolve in the same direction. The most critical requirement for this is the development of strong trade skills," he told the gathering.

He further stated that entrepreneurs must invest in their own skills and set an example, making sure their employees, no matter if they are in service areas like accounting, HR, or inventory, also invest in these trades.

"These are also pathways to growth, as these skills will lead to employment generation. This is the way for them to integrate themselves into the global value chain," said Nageswaran.

R Dinesh, Past President CII and Chairman, CII Centre of Excellence on Employment and Livelihood (CEL), said that when we speak about the future of India, micro and small enterprises will play a key role.

'We think the future doesn't lie just in boardrooms or tech labs. We want to become the enablers for MSMEs and rural jobs. We have to make the future of India bright and resilient, this paves the way for economic depth, social stability, and employment architecture," he mentioned during the event.

According to Rajiv Memani, President, CII, the broader question for India is not just what we import, but also how we think about manufacturing competitiveness, trade relationships and long-term economic resilience.

Meanwhile, the Union Cabinet, chaired by Prime Minister Narendra Modi, this month approved the launch of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, aimed at providing crucial financial support to businesses impacted by the ongoing West Asia crisis.

Under the new phase of the scheme, the government will extend enhanced credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC).

The scheme offers 100 per cent guarantee coverage for micro, small and medium enterprises (MSMEs) and 90 per cent coverage for non-MSMEs as well as the airline sector. This backing is intended to encourage banks and financial institutions to lend additional funds without fear of default risks.

- IANS

Share this article:

Reader Comments

R
Ravi K
Finally someone talking sense about MSMEs! I run a small textile unit in Tirupur and I can tell you, our weavers are incredibly skilled but lack marketing and export knowledge. If CII and government can bridge this gap with proper training in trade compliance, quality standards, and e-commerce, we can compete globally. The West Asia crisis has hit us hard with raw material costs, so ECLGS 5.0 is timely. But please make loan disbursal faster and less bureaucratic! đź’Ş
S
Suresh O
Good initiative no doubt, but we must ask: how many micro-enterprises in rural areas actually have access to quality skill training? The CEA mentions accounting, HR, inventory—but the basic digital literacy itself is missing in many parts. We need mobile-based training modules in regional languages. Also, the ECLGS scheme has had issues with delayed disbursal in past phases. Hope implementation is better this time.
L
Lisa P
As someone working with an NGO that upskills rural women entrepreneurs, I completely agree with CEA Nageswaran's emphasis on trade skills. But we need a multi-pronged approach—combining skill training with credit access and market linkages. The ECLGS 5.0 guarantee is a great safety net for banks, but MSMEs also need mentorship on how to actually use those loans productively. Really hope CII walks the talk on this. 👍
R
Rahul R
I appreciate the vision, but let's be honest—most micro-enterprises are run by people who barely make ends meet. Asking them to invest in skills when they're struggling with cash flow, GST compliance, and power shortages is tough. The government should first stabilise their business environment, ensure stable electricity, reduce tax burdens, and then talk about skill upgrades. Still, the CEA's intent is good. 🙏

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50