Spotlight Turns To MSMEs’ Key Role In Driving Green Growth And Climate Action

The summit title said it all. The Global Summit on Sustainability: MSMEs – Small Businesses, Big Impact focused on their role in sustainable growth and addressing global climate challenges.

MSMEs have been gaining traction in India, the recently announced budget also provided incentives for the sector to grow.

The summit speakers discussed that the MSMEs should embed the Sustainable Development Goals to enhance their competitiveness. MSMEs contribute to Indian exports by almost 50 percent and provide employment to crores of people, which is crucial for a growing economy like India. MSMEs could also gain from green credits as India’s carbon market evolves. Though MSMEs are not come under the ambit of SEBI’s BRSR, or corporate social responsibility regulation, they should become future-ready.

Ranjeet Mehta, CEO & Secretary General, PHDCCI, stressed on the entrepreneurial prowess of Indian startups, proposing the creation of sustainability parks as similar to Taiwan’s plastic ecoparks and PHDCCI's role in leading these green initiatives for MSMEs. Sustainability is the core of economic development. With over 65 million MSMEs and a rapidly growing startup ecosystem, India’s entrepreneurial spirit is leading the way towards a sustainable future, he added.

To support the green growth of MSMEs, a green vertical has been launched by SIDBI to support MSMEs’ sustainable practices. SIDBI has come up with 4E (End to End Energy Efficiency) and green financing to support the greening of the MSME ecosystem.

Ashok Kumar, Deputy Director General, Bureau of Energy Efficiency (BEE), Ministry of Power, announced a new initiative to support MSMEs transition to green energy. The Government of India has given in-principle approval for a Rs 1,000 crore fund, which will provide interest subvention for MSMEs taking loans to adopt green energy projects. This initiative will complement BEE’s work, which has already demonstrated 50 energy conservation projects and developed sector-specific guidelines for MSMEs.

Jeevaraj Pillai, Director, Sustainability, UFlex Limited, said that it is desirable for MSMEs to integrate corporate social responsibility into business strategies.

The summit was attended by key industry leaders and policymakers, featuring stalls showcasing sustainable solutions, reinforcing MSMEs' critical role in driving green growth and emerging technologies and showcasing best practices in sustainability.