“Micro-, small- and medium-sized enterprises (MSMEs) are the backbone and driving force of economic growth, social progress and broad-based development,” said the ASEAN Deputy Secretary-General for ASEAN Economic Community, S. Pushpanathan. “They have contributed immensely to providing employment opportunities in urban and rural areas, and to direct and indirect export earnings. These enterprises are the underlying force of ASEAN’s economies’ competitiveness and dynamism,” he added.

The Deputy Secretary-General was addressing the India-ASEAN Business Fair & Business Conclave, which opened in New Delhi on Wednesday.

At the session, he encouraged closer ASEAN-India cooperation to foster MSMEs development. “There are certainly grounds for optimism that MSMEs in ASEAN and India could be a powerful driving force to propel our economic growth,” he said. 

MSMEs account for more than 96% of enterprises in ASEAN and 90% in India. ASEAN’s massive growth of cottage enterprises for hand-made traditional textile and silk fabrics, for example, has provided employment for a substantial number of village artisans and rural-area workers. Meanwhile, MSMEs and new start-ups also attributed to India’s position as a major global player of ICT services.

The ASEAN SME Working Group has focused on improving institutional and venture capital funding for SMEs. The Working Group has been exchanging information and experiences with the SME Rating Agency of India Ltd (SMERA). Such cooperation, DSG Nathan added, “will help to leverage further on the development and competiveness of our MSMEs in the years to come and contribute to the growing and prospering ASEAN-India economic partnership.”

The session concluded with a call for a more structured cooperation between ASEAN and India on MSMEs cooperation and development, covering exchange of views and best practices and training and capacity building, among others.