(MENAFN- KNN India)
New Delhi, Dec 17 (KNN) In a pivotal address at the 21st Global MSME Business Summit 2024, Rajesh Agrawal, additional secretary of the Department of Commerce, emphasised the critical need for India to reassess global value chains (GVCs) to enhance national economic resilience against geopolitical and climate-related disruptions.
Drawing lessons from the COVID-19 pandemic, Agrawal underscored that cost should no longer be the sole determining factor in supply chain strategies.
He advocated for a more nuanced approach that prioritises diversification and resilience, even if it entails increased expenditure.
"Cost is not everything; it's one of the variables but not the variable," Agrawal stated, highlighting the importance of adaptable and robust supply chain models.
Addressing the competitive landscape, Agrawal acknowledged the challenges of competing with more established manufacturing sectors while expressing optimism about changing global consumer perspectives.
He suggested that emerging markets like India must start thinking differently and leverage innovative strategies to gain competitive advantage.
Circularity emerged as a key focus area, with Agrawal identifying micro, small, and medium enterprises (MSMEs) as potential drivers of sustainable growth.
He emphasised the sector's capacity to mitigate economic challenges through circular economy principles and innovative approaches to manufacturing and trade.
The government's trade strategy is undergoing significant transformation, with a renewed focus on equitable international trade practices and support for MSMEs.
Agrawal revealed that the administration is actively negotiating free trade agreements with a specific emphasis on MSME interests, aiming to reduce information asymmetry and create more inclusive trade frameworks.
Looking forward, Agrawal called for the development of sustainable global supply chains and urged industries to proactively create frameworks that can withstand future economic uncertainties.
"We need to insulate and create more sustainable global supply chains," he emphasised, highlighting the need for continuous adaptation and strategic foresight.
The summit underscored the critical role of MSMEs in India's economic ecosystem, positioning them as key contributors to manufacturing, trade, and employment.
As global economic dynamics continue to evolve, the government's approach signals a comprehensive strategy to support and empower small and medium enterprises in navigating complex international markets.
(KNN Bureau)
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