“Focus on Innovation and Quality to Access New Markets: CEA Nageswaran”

Strengthening Innovation and Ambition in India’s MSMEs: Insights from CEA V. Anantha Nageswaran

India’s Micro, Small, and Medium Enterprises (MSMEs) are currently navigating a challenging economic landscape, amplified by external pressures such as the United States’ imposition of 50 per cent tariffs on certain imports. Recognizing the critical role that MSMEs play in India’s economy, Chief Economic Advisor (CEA) V. Anantha Nageswaran has emphasized the urgent need for these enterprises to adopt a culture centered on innovation, competitiveness, and quality. According to him, fostering ambition among MSMEs is equally essential, as it forms a behavioral trait that can drive growth and help overcome structural and market-related obstacles.

Nageswaran highlighted that treating MSME suppliers on par with larger suppliers is not only a policy goal but also a mindset that must be consistently reinforced. He explained that engagement with MSMEs should go beyond transactional or compliance-focused interactions; rather, it should aim at cultivating an environment where these enterprises are motivated to innovate, improve product quality, and explore new market opportunities. This approach would help them compete more effectively both domestically and internationally.

He noted that while it is natural for small businesses to be content with their current operational status, complacency can be detrimental if it stems from a tacit acknowledgment of existing challenges or barriers. In other words, a lack of ambition among MSMEs often reflects not just satisfaction but a recognition of hurdles that seem difficult to overcome. This can result in missed opportunities, stagnation, and reduced competitiveness in both domestic and global markets. Hence, addressing the root causes of these perceived obstacles, while simultaneously encouraging ambition, is crucial for their sustained growth.

Nageswaran’s remarks underscore the importance of combining structural support with behavioral change. While government policies, subsidies, and financial support mechanisms provide critical backing, the mindset of MSME entrepreneurs significantly determines their ability to leverage these benefits. By instilling a culture of innovation and competitiveness, businesses can develop new products, improve processes, and create value-added offerings that differentiate them in a crowded marketplace. Quality, in this context, is a vital driver that can open doors to international markets and strengthen brand credibility.

Furthermore, the CEA emphasized the broader strategic significance of MSMEs in India’s economic ecosystem. These enterprises are vital for employment generation, innovation, and regional economic development. Enhancing their competitiveness not only supports individual businesses but also strengthens supply chains, fosters economic resilience, and contributes to India’s global trade positioning. The development of ambition-driven behaviors, combined with practical engagement on innovation and quality, equips MSMEs to better navigate challenges like tariff pressures and global market fluctuations.

In conclusion, V. Anantha Nageswaran’s guidance presents a multi-faceted approach for MSMEs: policy support must be complemented by cultivating a culture of innovation, quality, and competitiveness. Simultaneously, nurturing ambition among entrepreneurs is essential to ensure that they do not view barriers as insurmountable but instead see them as challenges to overcome. By adopting this integrated approach, MSMEs can enhance their operational capabilities, expand their market reach, and contribute significantly to India’s economic growth. Ultimately, ambition, innovation, and quality form the pillars that will empower MSMEs to thrive in an increasingly competitive global environment.