Policy miss: 71% of small manufacturers say government skill schemes haven't helped
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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
25 minutes ago
- New Indian Express
Tiruppur exporters seek relief from CM after US imposes 50% tariff on Indian goods
TIRUPPUR: Exporters from Tiruppur met Chief Minister M K Stalin on Thursday, seeking urgent relief measures after US President Donald Trump announced a 50% tariff on goods exported from India to the US from August 27. Knitwear exports from Tiruppur to the US are worth Rs 2,000 crore, with the US accounting for nearly 35% of the district's total exports of Rs 44,747 crore in the last financial year. Tiruppur Exporters' Association (TEA) leaders warned that US buyers have begun asking exporters to hold previously placed orders due to the higher duty, potentially leading to company closures and job losses. They requested a two-year moratorium on MSME exporters' loan repayments, a special emergency credit facility, subsidies to access alternative markets, reinstatement of the 5% interest subvention scheme, separate banking policies for MSMEs, and liberalised import norms for synthetic yarn. TEA joint secretary Kumar Duraiswamy said the tariff will severely impact Tiruppur's 10 lakh workers, 2,500 companies, and 20,000 ancillary units, forcing heavy discounts and shipment delays. The Chief Minister assured that steps would be taken on their demands.
Hans India
25 minutes ago
- Hans India
GHMC Mayor, Commissioner hoist national flag
Hyderabad: Mayor Gadwal Vijayalakshmi on Friday said that the leadership of Chief Minister A. Revanth Reddy is instrumental in transforming Greater Hyderabad into a world-class city. The Mayor was addressing the gathering after hoisting the National Flag at the GHMC Head Office as part of the 79th Independence Day celebrations. As part of the programme, loans worth Rs 288.85 crore were distributed to 2,597 Self-Help Groups (SHGs). Under the Self Employment Programme (SEP), Rs 1.15 crore was extended to 155 individuals for setting up micro-enterprises. The Mayor highlighted GHMC's efforts in promoting inclusive development, noting that transgenders trained in graphic designing at the Light House Communities Skilling Centre received job offer letters from Red TV. Four beneficiaries — Madhuraj, Emran Khan, Naveena, and Varun Tej — were appreciated during the event. Driving licences for two- and three-wheeler light motor vehicles were also issued to five women to support their livelihoods. This financial year, 3,460 new SHGs were formed under GHMC's initiatives. Announcing upcoming citizen welfare measures, the Mayor said Indiramma Canteens would soon be inaugurated across the GHMC limits. She stated that a Civil Registration System Portal for issuing birth and death certificates will be launched shortly to facilitate public access to these services. She also stated In an effort to enhance urban flood management and improve stormwater infrastructure, the GHMC has embarked on plans to implement GIS-based survey and mapping of storm water drains within its limits soon. Commissioner R.V. Karnan, Additional Commissioners Raghu Prasad, Venugopal, Subhadra Devi, Pankaja, CCP Srinivas, ASP Vigilance Sudarshan, AMHO Dr. Padmaja, Additional CCP Venkanna, Pradeep, CE Ratnakar, Deputy CE Panasa, Chief Examiner Venkateswara Reddy, UBD Director Venkateswara Rao, OSD Anuradha, CPRO Mohd Murtuza Ali ,senior officials from various departments, and others took part in the celebrations.
Hans India
25 minutes ago
- Hans India
SCR records gross revenue of Rs 6,970 crore
Hyderabad: The South Central Railway (SCR) General Manager Sanjay Kumar Srivastava on Friday said that the zone has recorded a gross revenue of Rs 6,970 crore between April and July 2025, an increase from the same period last year. The SCR celebrated the 79th Independence Day with grandeur and pride at the Railway Sports complex ground in Secunderabad on Friday. The event began with General Manager Sanjay Kumar Srivastava hoisting the National Flag and receiving the National Salute from the Railway Protection Force (RPF) contingent. Speaking during the occasion, the General Manager said that the freight loading reached a record 49 million tonnes, the highest ever in the first four months of any financial year in the zone's history. Freight earnings touched Rs 4,601 crore, while passenger services generated Rs 1,990 crore, carrying 96 million passengers. The GM further said that on the safety front, SCR maintained a 'zero-tolerance' approach, with no consequential accidents recorded so far this year. Between April and July, 283 km of track renewal was completed, sectional speeds were raised to 130 Kmph across 364 km, and 19 permanent speed restrictions were eased or removed, achievements that placed SCR at the top among all zonal railways. The General Manager also outlined the zone's infrastructure development priorities with a major focus on doubling, tripling, and last-mile connectivity projects like Kazipet-Vijayawada, Kazipet-Balharshah, and Vijayawada-Gudur, many of which are expected to be completed by 2026.
