Quick Overview

Against the background of the rapid changes in the global economy, to which India and Gujarat are getting increasingly integrated, the challenges to SME competitiveness have gone up. However, a prerequisite for enhanced competitiveness, is an environment of competition itself. The legal and institutional framework prevailing in the Country and in Gujarat are decisive in providing these preconditions. One laudable achievement of Gujarat is its integrated approach to investment promotion as a key to rapid growth. It requires greater efforts towards developing and branding of clusters , rewarding innovative entrepreneurs , and development of infrastructure, especially , ports, airports, logistic services and industrial estates .Moreover, the state need to strengthen its economic infrastructure, such as, quality testing facilities, incubators, enabling firms conversant with IPR and export procedures/regulations, entrepreneurship development, and design technology. Such an integrated approach helps the State to go beyond the constraints of narrow departmentalism, a malaise faced by many other States of the Country. Gujarat’s MSME growth, even while appreciating the focused efforts of the Government, is more of a spillover of overall growth. But in order to help the MSME sector to enjoy the benefits of such growth in a more meaningful way, legal and institutional reforms are vital.