India’s MSME sector is already recognised as the backbone of the nation’s economy. Looking ahead, it is poised to transition into the primary catalyst for India’s growth as the country advances towards the vision of Viksit Bharat 2047.
This powerful vision was articulated by Mr Bharat Khera, Secretary, Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, during an exclusive edition of SMEStreet ViewPoint hosted by Dr Faiz Askari, Founder and Editor of SMEStreet, on the occasion of World MSME Day 2026.
The wide-ranging conversation explored India’s MSME transformation agenda, covering technology adoption, access to finance, formalisation, global competitiveness, exports, Industry 4.0, entrepreneurship and the policy roadmap that will shape the next phase of India’s economic growth.
During the interaction, Mr Khera emphasised that Indian MSMEs are no longer confined to being the backbone of the economy. As India progresses towards Viksit Bharat 2047, the sector is expected to evolve into a powerful catalyst for innovation, manufacturing excellence, employment generation and deeper integration with global value chains.
The special edition of SMEStreet ViewPoint also marked the announcement of SMEStreet’s Campus to Commerce, a nationwide initiative designed to strengthen collaboration between academia and industry while preparing the next generation of entrepreneurs, innovators and professionals for India’s evolving MSME ecosystem.
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MSMEs Will Drive India’s Next Phase of Economic Transformation
Speaking about the evolving role of MSMEs, Mr Bharat Khera said:
“As we move towards Viksit Bharat 2047, MSMEs will move beyond being the backbone of the Indian economy. They will become the catalyst for India’s growth, increasingly integrating into global value chains and driving innovation, manufacturing and employment.”
Mr Khera noted that India’s MSME ecosystem has witnessed remarkable formalisation, with more than 8.6 crore enterprises now registered on the Udyam Portal, significantly expanding entrepreneurs’ access to government schemes, institutional finance and policy support.
Technology and AI Will Define the Future of Indian MSMEs
Highlighting the importance of digital transformation, Mr Khera emphasised that technology adoption will be central to enhancing productivity and global competitiveness.
“AI is today’s biggest technology disruptor as well as the biggest technology enabler. Indian MSMEs that adopt technology quickly will become more competitive, more productive and better integrated with global markets.”
He further highlighted the Ministry’s expanding Technology Centre network, which is being strengthened across the country to provide MSMEs with access to advanced manufacturing, Artificial Intelligence, robotics, IoT, product design, prototyping, tooling and high-quality skill development.
Delayed Payments Continue to Receive Policy Attention
Addressing one of the sector’s most persistent concerns, Mr Khera reaffirmed the Government’s commitment to improving payment discipline and strengthening dispute resolution mechanisms.
“Timely payments are critical for MSMEs because they directly affect working capital. Through the MSME Samadhaan Portal, Online Dispute Resolution mechanisms and mandatory adoption of the TReDS platform, we are making dispute resolution faster and improving payment discipline across the ecosystem.”
He also highlighted the growing impact of Credit Guarantee schemes and the Self-Reliant Fund, which together have significantly expanded access to both debt and equity capital for high-growth MSMEs.
SMEStreet Launches Campus to Commerce Initiative
During the interaction, Dr Faiz Askari announced the launch of SMEStreet Campus to Commerce, a national initiative that aims to bridge the gap between academia and industry by connecting universities, students, startups and MSMEs through mentorship, entrepreneurship awareness, leadership interactions and industry engagement.
Announcing the initiative, Dr Faiz Askari said:
“Through Campus to Commerce, SMEStreet aims to bridge the gap between classrooms and boardrooms by preparing young talent for the realities of entrepreneurship, innovation and India’s evolving MSME ecosystem.”
Welcoming the initiative, Mr Bharat Khera appreciated SMEStreet’s efforts to strengthen industry-academia collaboration and described such engagement as critical for enabling students to understand real-world business challenges while encouraging innovation and entrepreneurship.
Media as an Enabler of India’s Entrepreneurial Ecosystem
Speaking about SMEStreet’s broader mission, Dr Faiz Askari said:
“At SMEStreet, we believe media must go beyond reporting. Our role is to empower entrepreneurs with knowledge, opportunities and meaningful conversations that contribute to India’s economic transformation.”
Dr Askari noted that India’s current economic trajectory presents an unprecedented opportunity for MSMEs to leverage technology, policy support and global market access to build internationally competitive enterprises.
A Shared Vision for India’s Entrepreneurial Future
The conversation concluded with a forward-looking discussion on India’s MSME landscape by 2030, where Mr Khera expressed confidence that increasing formalisation, rapid technology adoption and deeper integration into global value chains will transform Indian MSMEs into larger, globally competitive enterprises capable of creating higher-value employment and accelerating national economic growth.
The complete interview will soon be released on SMEStreet ViewPoint, SMEStreet’s flagship leadership interview series featuring policymakers, business leaders and industry experts driving India’s entrepreneurial and economic transformation.
