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Mint
9 hours ago
- Business
- Mint
MSMEs survey: 61% say govt skill and talent programs ‘ineffective', 88% agree govt spend pushes capex plan, finds report
A majority of the Micro, Small and Medium Enterprises (MSMEs) surveyed in a Cushman & Wakefield report on the sector, felt that skilling and talent programmes run by the government are ineffective for them, ANI reported. As many as 71 per cent of manufacturing MSMEs, felt that government-run skill-training programmes haven't helped them. Overall, 61 per cent of MSMEs said the initiatives had not reached them, and 39 per cent affirmed that they had received benefits, the report added. All companies surveyed had less than 500 employees. The report titled, 'Elevating India's Manufacturing Resilience: Charting the Path to Self-Reliance', found that 'government skill and talent initiatives aren't reaching the sector effectively. The gap is widest among small firms.' Further, it found that even though MSMEs employed four of every five manufacturing workers, and produced 40 per cent of the sector's output; these workers generated only 14 per cent as much as each worker in a large plant. Similar manufacturers in emerging economies have reached almost 30 per cent; in advanced economies the gap is even smaller, the report observed. Apart from various skilling schemes, the government has earmarked ₹ 2,500 crore for 12 sector-specific plug-and-play parks to speed plan setup, slash capex, help SMEs and attract Foreign Direct Investments (FDI). Here, a chunk of 88 per cent respondents agreed that government spend on infrastructure has influenced their capex plans. Further, 93 per cent of respondents report better operating efficiency and profitability where modern parks and corridors are in place. Another notable 88 per cent of respondents plan to expand operations, driven by infrastructure projects such as Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development. Additionally, 95 per cent reported improved access to logistics. And 94 per cent of large enterprises credited infrastructure upgrades as central to their growth strategies. 'India must address deep-rooted cost and capacity gaps — especially in logistics, integrated facilities, and MSME productivity,' according to Gautam Saraf, Executive MD, Mumbai & New Business, Cushman & Wakefield. The report noted that challenges persist for the MSME sector. High logistics costs, low warehousing capacity (0.2 sq. ft. per urban resident vs. 47.3 in the US), minimal domestic value addition (17 per cent vs. China's 25 per cent), and skill gaps, especially in MSMEs, threaten long-term competitiveness. 'Plug-and-play industrial parks, multimodal logistics networks, and improved land aggregation frameworks are not just enablers; they are essential levers for converting policy momentum into production-ready outcomes,' Saraf added.
Time of India
a day ago
- Business
- Time of India
Policy miss: 71% of small manufacturers say government skill schemes haven't helped
This is an AI-generated image, used for representational purposes only. A majority of small manufacturing enterprises in India say government-run skill-training initiatives are failing to reach them effectively, with 71 per cent reporting no benefits from such programmes, according to a report by Cushman & Wakefield. The survey, part of the firm's report 'Elevating India's Manufacturing Resilience: Charting the Path to Self-Reliance', highlights major gaps in talent support to Micro, Small and Medium Enterprises (MSMEs). According to news agency ANI, around 61 per cent of MSMEs overall said they had not received any support from government skill and talent programmes, while just 39 per cent confirmed any benefit. The disconnect is sharpest among smaller firms, those employing fewer than 500 people. The report notes that MSMEs employ four out of every five workers in the manufacturing sector and contribute to 40 per cent of the output. Yet, productivity remains low. A worker in an MSME generates only 14 per cent of the output compared to one in a large enterprise. Comparable firms in other emerging economies are already nearing 30 per cent output per worker, while the gap is even narrower in developed nations. Cushman & Wakefield's executive managing director Gautam Saraf said bridging capacity and cost gaps in areas like logistics, integrated facilities, and MSME productivity is vital. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo 'Plug-and-play industrial parks, multimodal logistics networks, and improved land aggregation frameworks are not just enablers—they are essential levers for converting policy momentum into production-ready outcomes,' he said, as quoted by ANI. Interestingly, while skill initiatives lag, infrastructure spending is having a strong impact. About 88 per cent of respondents said projects like Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development had influenced their capital expenditure plans. In fact, 93 per cent reported better operating efficiency and profitability where modern industrial parks and corridors are present, and 94 per cent of large enterprises credited infrastructure upgrades as key to their growth. However, long-term competitiveness is still threatened by high logistics costs, limited warehousing (0.2 sq. ft. per urban resident in India compared to 47.3 sq. ft. in the US), low domestic value addition (17 per cent vs China's 25 per cent), and skill shortages, especially in MSMEs. These challenges compound existing regulatory burdens. In a separate study by TeamLease RegTech, a typical manufacturing MSME deals with over 1,450 compliance obligations annually, costing Rs 13–17 lakh per year. These span seven legal categories and involve 486 imprisonment clauses, many for procedural lapses. Rishi Agrawal, CEO of TeamLease RegTech, stressed that India must urgently reduce its 'deeply entrenched hostility and inspector raj' to unshackle MSME growth. 'We need to add compliance to India's DPI (Digital Public Infrastructure) stack,' he added, as cited by ANI. The latest findings reinforce calls for a more holistic and MSME-centric policy approach—one that combines skill development with regulatory relief and infrastructure support to truly empower India's 6.45 crore MSMEs. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India Gazette
2 days ago
- Business
- India Gazette
71% of manufacturing MSMEs say govt-skill training schemes didn't help: Report
New Delhi [India], June 29 (ANI): The government skill and talent initiatives are not effectively reaching the Micro, Small and Medium Enterprises (MSMEs) engaged in the manufacturing activities, as a staggering 71 per cent of small firms say government-run skill-training programmes haven't helped them, according to a report by Cushman & Wakefield. The report observed that approximately 61 per cent of MSMEs stated that government skill and talent initiatives had not reached them, while 39 per cent affirmed that they had received benefits. 'Our survey indicates that government skill and talent initiatives aren't reaching the sector effectively. The gap is widest among small firms; 71 per cent say government skill-training programmes haven't helped them,' the report titled 'Elevating India's Manufacturing Resilience: Charting the Path to Self-Reliance' added. The size of the small firms in the survey was less than 500 employees. MSMEs employed four of every five manufacturing workers and produced 40 per cent of the sector's output. Yet each worker in an MSME generates only 14 per cent as much as a worker in a large plant, the report added. Similar manufacturers in emerging economies have reached almost 30 per cent; in advanced economies the gap is even smaller, the report observed. Apart from various skilling schemes, the government has earmarked Rs 2,500 crore for 12 sector-specific plug-and-play parks to speed plan setup, slash capex, help SMEs and attract Foreign Direct Investments. On the other hand, about 88 per cent of survey respondents said that government infrastructure spending has influenced their capex plans. The 93 per cent of respondents report better operating efficiency and profitability where modern parks and corridors are in place. Notably, 88 per cent of respondents plan to expand operations, driven by infrastructure projects like Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development. 'India must address deep-rooted cost and capacity gaps--especially in logistics, integrated facilities, and MSME productivity. Plug-and-play industrial parks, multimodal logistics networks, and improved land aggregation frameworks are not just enablers; they are essential levers for converting policy momentum into production-ready outcomes,' said Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & Wakefield. Additionally, 95 per cent reported improved access to logistics, while 94 per cent of large enterprises credited infrastructure upgrades as central to their growth strategies. Despite these advancements, critical challenges persist. High logistics costs, low warehousing capacity (0.2 sq. ft. per urban resident vs. 47.3 in the U.S.), minimal domestic value addition (17 per cent vs. China's 25 per cent), and skill gaps, especially in MSMEs, threaten long-term competitiveness. (ANI)
India Gazette
3 days ago
- Business
- India Gazette
India's manufacturing sector poised for leap with infrastructure and policy push: Report
New Delhi [India], June 27 (ANI): India's manufacturing landscape is undergoing a significant transformation, fueled by robust infrastructure development and supportive government policies, as revealed in a recent report by Cushman & Wakefield named Elevating India's Manufacturing Resilience: Charting the Path to on a survey of 94 senior leaders conducted by Cushman & Wakefield across the manufacturing and logistics sectors, including CEOs, plant heads, and supply chain managers, the report highlights strong industry optimism. Notably, 88 per cent of respondents plan to expand operations, driven by infrastructure projects like Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development. Additionally, 95 per cent reported improved access to logistics, while 94 per cent of large enterprises credited infrastructure upgrades as central to their growth strategies.'India's manufacturing sector is undergoing a structural shift. Our findings indicate a strong alignment between infrastructure investment, policy clarity, and industry intent. According to our survey, 88 per cent of manufacturers are scaling up due to infrastructure-led confidence, and over 95 per cent report improved logistics access through government-backed programs,' said Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & initiatives like the Production Linked Incentive (PLI) scheme and the National Logistics Policy (NLP) are also shaping business decisions. Over 40 per cent cited these policies as having a significant impact, with MSMEs particularly benefiting from improved connectivity and ease of doing business, acknowledged by 77 per cent of all these advancements, critical challenges persist. High logistics costs, low warehousing capacity (0.2 sq. ft. per urban resident vs. 47.3 in the U.S.), minimal domestic value addition (17 per cent vs. China's 25 per cent), and skill gaps, especially in MSMEs, threaten long-term address these, the report outlines a five-pronged strategy: plug-and-play industrial parks, multimodal logistics networks, skill development programs, MSME reform, and digital platforms for export facilitation. Plug-and-play parks--pre-approved and infrastructure-ready--are highlighted as transformative, with the Union Budget 2025-26 allocating 2,500 crore for 12 such 81 per cent of companies planning to expand in the next two to three years and 70 per cent ready to move into Tier II and III cities, the report underscores the urgency of continued infrastructure investment. 'India's manufacturing is at an inflection point,' said Gautam Saraf, Executive Managing Director, Cushman & Wakefield. 'The alignment of policy, infrastructure, and private sector intent offers a clear pathway to global competitiveness.' (ANI)
Hans India
3 days ago
- Business
- Hans India
88 pc of manufacturers plan to expand operations backed by India's infra push
New Delhi: The government's infrastructure push has directly influenced capital investment decisions of 88 per cent of manufacturers, signalling increased confidence to scale operations, according to a report on Friday. India's manufacturing and logistics ecosystem is undergoing a significant transformation, driven by strong policy support and large-scale infrastructure investments. Cushman & Wakefield's report, titled 'Elevating India's Manufacturing Resilience: Charting the Path to Self-Reliance,' reveals high optimism regarding the impact of government-led infrastructure initiatives such as Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development. As many as 86 per cent of respondents said these initiatives have positively influenced their business operations, while 95 per cent reported improved access to logistics and transport infrastructure as a result. For large enterprises, the impact is even sharper — 94 per cent say these upgrades have been pivotal in shaping their expansion plans. While the infrastructure buildout has laid the groundwork for industrial expansion, government policies like the production-linked incentive (PLI) schemes and 'Make in India' are shaping strategic priorities. Over 40 per cent of respondents said these schemes have had the most significant impact on their business. Meanwhile, the National Logistics Policy (NLP) and National Industrial Corridor Development (NICD) were cited by 54 per cent as being especially beneficial, particularly among MSMEs, for whom logistics accessibility and industrial park connectivity are key enablers, said the report. Notably, 77 per cent of the respondents felt that the ease of doing business had improved, with the figure rising to 86 per cent among large-scale firms. 'India's manufacturing sector is undergoing a structural shift. Our findings indicate a strong alignment between infrastructure investment, policy clarity, and industry intent,' said Gautam Saraf, Executive Managing Director, Mumbai and New Business, Cushman & Wakefield. To sustain this momentum, India must address deep-rooted cost and capacity gaps — especially in logistics, integrated facilities, and MSME productivity. 'Plug-and-play industrial parks, multimodal logistics networks, and improved land aggregation frameworks are not just enablers, they are essential levers for converting policy momentum into production ready outcomes,' said Saraf. To support long-term growth, the report lays out a five-pronged strategy: accelerate the development of plug-and-play industrial parks; reassess the parameters that define MSME's to foster scale; fast-track the rollout of multimodal logistics parks (MMLPs); invest in targeted skill development programs; and empower MSME exports through unified digital platforms and incentives.
