Interview with Additional Development Commissioner (MSME), Sanjeev Chawla
From industrial clusters in Faridabad to the government’s policy corridors in Chandigarh, the conversation around micro, small, and medium enterprises (MSMEs) is growing louder. In an exclusive interaction with Goseeko, Sanjeev Chawla, Additional Development Commissioner (MSME), explained how the state and central governments are working to improve competitiveness, ease constraints, and nurture the next generation of entrepreneurs.
Listening to Industry Voices
Speaking about his recent interaction with entrepreneurs in Faridabad, Chawla said the purpose of the workshop was to “get feedback from entrepreneurs and associations, to understand the constraints they face, and the factors which, if addressed, can lead to their growth.”
He described competitiveness as having three essential dimensions: quality, cost, and delivery.
“Our consumers today are highly aware; they compare products and features. So, there can be no compromise on quality,” Chawla stressed. “The mantra is QCD: quality, cost, and delivery. The quality has to be the best, cost comparable to international standards, and delivery must be on time.”
Despite India’s growing industrial base, Chawla noted that the country’s share in global trade remains disproportionately low. “These are the issues we discussed; how MSMEs can strengthen their competitive edge and increase their global footprint,” he said.
Major Bottlenecks: Land, Credit, and Awareness
While optimism runs high, several structural issues continue to weigh down small enterprises. “The biggest problem now for the industry is the availability of industrial plots at affordable cost,” Chawla admitted. In Faridabad alone, he pointed out, out of nearly 25,000 MSMEs, about 20,000 operate in non-confirming areas. “They do not get government support or facilities in these irregular zones and that’s a big, big problem.”
Access to credit and awareness are other key challenges. “Most MSMEs are one-man shows. Owners are busy with daily operations, and don’t have time or resources for strategic planning. Awareness levels are low, and this asymmetry of knowledge has always been a problem,” he added.
Policy and Institutional Support
On the question of where MSMEs can turn for guidance, Chawla emphasized that both the state and central governments play vital roles. “Industry is a state subject under the Constitution, but both levels of government are committed to supporting MSMEs,” he said. Haryana, he added, has a dedicated Directorate for MSMEs, in addition to the Ministry of Commerce and Industry, while the Ministry of MSME at the Centre runs numerous schemes for capacity building, financing, and market linkage.
Rapid Growth and a Bright Outlook
According to Chawla, the MSME sector has witnessed “phenomenal” growth in recent years. “The number of MSMEs registered on the Udyam portal has increased from 200,000 to nearly one million in just four years,” he said. Part of this growth comes from allowing traders to register, but it also reflects “a dynamic field that is expanding fast.”
He believes the future is promising: “Government of India and the Haryana government are stressing a lot on MSMEs because this sector suits a populous economy like ours. There are import restrictions on several items and quality control orders being issued – all to promote domestic production.”
Private Sector Participation and Infrastructure Development
Haryana’s policies are evolving to encourage private sector participation in industrial infrastructure. “The state has undertaken development of industrial estates by private players,” Chawla explained. “Schemes like Padma and the Plug-and-Play Clusters give incentives to private developers to build industrial infrastructure. This is a very good scheme and is showing results.”
He also highlighted central schemes such as the Public Procurement Policy, which mandates that a certain percentage of government and PSU purchases be sourced from micro and small enterprises. “There are also clear guidelines for funding MSMEs by banks,” he said.
Employment Generation and Enterprise Creation
MSMEs remain the largest employment generator after agriculture. “The average employment per MSME unit is six to seven persons,” Chawla said. “Overall, the sector provides about 28 crore jobs, growing at a healthy pace.”
He cited the Prime Minister Employment Generation Programme (PMEGP) and the Formalisation of Micro Enterprises in the Food Sector as two major schemes focused on enterprise creation. “These schemes are not sector-specific. They encourage new ventures across fields,” he clarified.
Building an Entrepreneurial Mindset
Chawla believes India’s next big leap in MSME growth will come from nurturing entrepreneurship early.
“Entrepreneurship has to be promoted at school and college levels,” he said. “Students should be given real projects, allowed to test products in the market, generate profits, and share them with their institutions. They must learn to prepare business plans, make presentations, and pitch for funding.”
He drew an interesting comparison with business families in India: “Children who grow up in business environments discuss strategy at the breakfast table. They learn the nuances of risk and valuation naturally. We must give similar exposure to students who don’t come from that background.”
A Vision for the Future
Mr Chawla’s message was clear – the MSME sector is not just about small businesses; it’s about building India’s economic backbone. “Our future is bright,” he said. He is confident that with the right policies, awareness, and entrepreneurial mindset, MSMEs can be the true engines of India’s growth.