Majority Of MSMEs Say Government Skill Training Misses The Mark, Despite Infrastructure Push

The report observed that approximately 61 per cent of MSMEs stated that government skill and talent initiatives had not reached them, while 39 per cent affirmed that they had received benefits.

Apart from various skilling schemes, the government has earmarked Rs 2,500 crore for 12 sector-specific plug-and-play parks to speed plan setup, slash capex, help SMEs and attract Foreign Direct Investments.

Source : Freepik

The government skill and talent initiatives are not effectively reaching the Micro, Small and Medium Enterprises (MSMEs) engaged in the manufacturing activities, as a staggering 71 per cent of small firms say government-run skill-training programmes haven't helped them, according to a report by Cushman & Wakefield.

The report observed that approximately 61 per cent of MSMEs stated that government skill and talent initiatives had not reached them, while 39 per cent affirmed that they had received benefits.

"Our survey indicates that government skill and talent initiatives aren't reaching the sector effectively. The gap is widest among small firms; 71 per cent say government skill-training programmes haven't helped them," the report titled 'Elevating India's Manufacturing Resilience: Charting the Path to Self-Reliance' added.

The size of the small firms in the survey was less than 500 employees. MSMEs employed four of every five manufacturing workers and produced 40 per cent of the sector's output. Yet each worker in an MSME generates only 14 per cent as much as a worker in a large plant, the report added.

Similar manufacturers in emerging economies have reached almost 30 per cent; in advanced economies the gap is even smaller, the report observed. Apart from various skilling schemes, the government has earmarked Rs 2,500 crore for 12 sector-specific plug-and-play parks to speed plan setup, slash capex, help SMEs and attract Foreign Direct Investments.

On the other hand, about 88 per cent of survey respondents said that government infrastructure spending has influenced their capex plans. The 93 per cent of respondents report better operating efficiency and profitability where modern parks and corridors are in place.

Notably, 88 per cent of respondents plan to expand operations, driven by infrastructure projects like Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development.

"India must address deep-rooted cost and capacity gaps--especially in logistics, integrated facilities, and MSME productivity. Plug-and-play industrial parks, multimodal logistics networks, and improved land aggregation frameworks are not just enablers; they are essential levers for converting policy momentum into production-ready outcomes," said Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & Wakefield.

Additionally, 95 per cent reported improved access to logistics, while 94 per cent of large enterprises credited infrastructure upgrades as central to their growth strategies.

Despite these advancements, critical challenges persist. High logistics costs, low warehousing capacity (0.2 sq. ft. per urban resident vs. 47.3 in the U.S.), minimal domestic value addition (17 per cent vs. China's 25 per cent), and skill gaps, especially in MSMEs, threaten long-term competitiveness. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)