New Delhi: The future growth trajectory of India's economy depends on how inclusively micro enterprises are enabled to adopt, adapt, scale, and integrate into domestic and global value chains, said Dr V Anantha Nageswaran, India's Chief Economic Advisor on Tuesday.
While addressing the session on “Powering the Future: India’s Micro Enterprises” during the CII Annual Business Summit 2026 in New Delhi, CEA said that while artificial intelligence (AI) and automation are transforming the workforce, human judgment remains indispensable in decision-making, creativity, and adaptability.
He said micro enterprises, often led by skilled individuals, serve as vital sources of human capital for large firms. Their agility, hands-on expertise, and entrepreneurial mindset can complement corporate structures, CEA said adding that large organisations can enhance innovation and resilience by investing in skills and fostering partnerships with micro enterprises.
He further maintained that investing in trade skills is crucial for micro enterprises to integrate into global value chains (GVCs).
With ITIs undergoing revitalization, micro enterprises can collectively pool resources and adopt these institutions to scale operations, enhance capabilities, and improve competitiveness, he added.
This collaborative approach not only leverages upgraded training infrastructure but also fosters innovation and resilience, enabling small players to access larger markets, he added.
"Secondly, skill development, combined with streamlined regulations in a simple, transparent and trust-based environment, positions micro enterprises to thrive amid global shifts like deglobalization and supply chain disruptions. Smart regulation, which envisions a conducive regulatory architecture, would provide the requisite bandwidth to micro enterprises to prosper. The government’s focus on deregulation should be viewed in this context," CEA added.
He further highlighted the importance of timely payments and healthier commercial practices by large industries, noting that delayed receivables often constrain working capital cycles for smaller businesses.
Ensuring timely payments to MSMEs across supply chains, he said, would not only improve liquidity but would also facilitate their integration in the global value chain.
Later in the day, addressing the session on “Fractured Global Economy, Shifting Faultlines: Geopolitics, Geoeconomics and the Emerging Economy Imperative,” Nageswaran, articulated the view that the global economy is experiencing a profound shift driven by four structural changes: geo-economic fragmentation, technology bifurcation, the energy transition premium, and the permanent repricing of geopolitical risk.
The West Asia crisis has significantly aggravated these divisions, acting as a "live balance-of-payments stress test" for India rather than a temporary shock. straining India’s balance of payments, he said.
For India, the West Asia crisis has been considerably disruptive considering that 87% of the country’s crude oil is imported, nearly 60% of LPG imports come from the Gulf region, while 38% of India’s yearly remittances are received from Gulf countries.
He suggested a strategic rethinking of fiscal consolidation and infrastructure investment amidst shifting global dynamics.
The CEA also maintained that advanced economies may not necessarily facilitate India’s rise without resistance. Hence India's strategic ascent hinges on long-term structural reforms, technological self-reliance, and resilient supply chains—areas that cannot be deferred.
India’s response has been to diversify its footprint in multiple geographies as exemplified by the nine recent trade agreements which signal proactive engagement. These agreements should be implemented on the ground and regulatory challenges should be narrowed, based on shared interest, he added.
Sustained progress requires that India should press ahead on reforms including fiscal consolidation, infrastructure investment and continuation of existing reforms, he said.
Ends.
Comments (0)
Be the first to comment!