Background

The Indian MSME sector generates around 100 million jobs through over 63 million registered units. The sector contributes approximately 38 per cent to the nation’s GDP and accounts for 40 per cent and 45 per cent share of the overall exports and manufacturing output respectively. It is the second largest employer after agriculture. While globalization and technological innovations have in recent year boosted growth of MSMEs, including rise in entrepreneurship culture, it has also increasingly made them vulnerable. Only 4 per cent of MSMEs are job creators and majority of around 70% are micro enterprises employing less than 10 employees. Gender inequality is stark in the sector. COVID-19 pandemic related market disruptions have further hit hard this sector. Promotion of sustainable enterprise is therefore paramount to make MSMEs productive and competitive, to not only generate and sustain income and livelihoods, but also one that is quality jobs, by providing a safe workplace with decent working conditions.

In this backdrop, PSEI project will support and guide MSMEs to adopt sound management practices for tapping into potential business prospects and sustainably integrate in the global supply chains. It will assist in the value chain development of two labour intensive sectors – textiles and garments, and food processing, in particular, fisheries – in Andhra Pradesh and Odisha. The project will contribute towards sustainable, inclusive and resilient economic rebuilding and recovery, in the two COVID-19 impacted states.

Outcomes

The PSEI project aims to achieve following outcomes:

• MSME policy initiatives are effectively designed and implemented, enhancing their market responsiveness to promote sustainable enterprises and integration in the global supply chain.
• Indian youths are equipped with entrepreneurial skills and generate decent jobs
• Indian MSMEs demonstrate responsible management practices and build sustainable business management system with increased productivity

PSEI project will enhance capacity of policy makers, workers and employers’ organizations to create an enabling ecosystem through exchanges with South Korea. It will engage with local institutions in Andhra Pradesh and Odisha, to strengthen design and delivery of business development services in the garment and food processing sector, by demonstrating application of ILO tools, SCORE and SIYB. SCORE training will support in enhancing productivity and working conditions in MSMEs. SIYB will support in coaching potential entrepreneurs, especially among women, to start new businesses. Market linkages will be facilitated through B2B exchanges between India and Korea. PSEI project will endeavor to specifically mainstream women and artisans in the value chain of garments and food processing in the two project states.

Implementing partners

• State Government of Andhra Pradesh
• State Government of Odisha

Target beneficiaries

• Beneficiaries include potential entrepreneurs, that is, the youths, especially, women and artisans in the garments and food processing sector in Andhra Pradesh and Odisha;
• Owners, managers and workers in MSMEs in the supply chain of garments and food processing sector in Andhra Pradesh and Odisha; and
• Policy-makers and officials from relevant State departments and institutions, industry associations as well as employers’ and workers’ organizations

For further information please contact:

Ms Sudipta Bhadra
Project Manager (Chief Technical Advisor)
Email: bhadra@ilo.org

Mr Ashish Dhiman
National Project Coordinator
Email: dhiman@ilo.org