ET SME Summit Ludhiana: More support and holistic policy needed to boost MSMEs, say stakeholders

At the ET SME Summit in Ludhiana, stakeholders emphasised the need for enhanced support and robust policies to strengthen micro-, small-, and medium-sized enterprises (MSMEs) in the region. Held on February 7, 2025, the summit brought together industry leaders, SME associations, and small business owners to encourage collaboration, address challenges, and shape the future of regional entrepreneurship.
This summit is part of a nationwide series of events designed to connect local MSMEs, policymakers, industry experts, and stakeholders, ultimately helping small businesses discover new opportunities, solve problems, share knowledge, and network to boost their growth.

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The summit commenced with a keynote address by Sanjeev Chawla, Additional Development Commissioner, MSME-DFO, Ludhiana. Chawla provided valuable insights regarding the government's strategies to support small and medium businesses (SMEs) and emphasised initiatives designed to promote their growth. He also discussed government assistance and initiatives tailored to foster MSMEs in Punjab, highlighting the sector's potential for growth both at the state and national levels.

Chawla noted that the contribution of MSMEs to India's gross domestic product (GDP) lags behind other countries, stressing the need for strategic technology adoption rather than blind automation. He advocated for a calibrated approach in labour-intensive sectors, underscoring the importance of thoughtful decision-making in the MSME sector. Chawla discussed the growth potential of MSMEs both in the state and country. “Our MSMEs’ contribution to GDP is not as large as in other countries. If we have to survive in the MSME sector, we have to go for appropriate tech, not blind automation. We need to take a calibrated approach to labour-intensive sectors,” Chawla said.


This followed an engaging fireside chat with Arpita Sen, General Manager of ECGC Limited, who discussed the role of the government-affiliated organisation in empowering MSMEs regarding exports. “We have a basket of products for our exporters to cover the export credit risk. We believe that one size doesn't fit all. MSMEs contribute 41% to India’s exports. This is something, as a stakeholder in the industry, we have a responsibility to support them,” she said.

Thereafter, association heads, entrepreneurs, and industry leaders came together for a panel discussion on ‘New needs, fresh opportunities: The industrial policy for today’s Punjab.’

Ashwani Kumar, President of the Federation of Indian Export Organisations (FIEO), supported measures announced in the Union Budget 2025-26 to promote MSMEs. “The Budget increased the investment and turnover limits for MSMEs, making benefits available to more MSMEs. These are some welcome initiatives as far as exporters are concerned,” said Kumar.

Gurmeet Singh Kular, President of the Federation of Industrial & Commercial Organisation (FICO), shared mixed views on the recent Union Budget announcements. While he welcomed some of the Budget 2025 proposals, he was disappointed regarding the suspension of the Credit Link Capital Subsidy Scheme (CLCSS), which was designed to support MSMEs in upgrading their technology. “While some of the measures in the Budget are praiseworthy, there is a need to do much more on the ground to support MSMEs,” said Kular.

Upkar Singh, President of the Chamber of Industrial & Commercial Undertakings (CICU), highlighted that Ludhiana is predominantly home to small-scale industries, each with unique credit and operational requirements that necessitate customised solutions. “No single policy can be applied to all MSMEs in the state, as each one has its own requirements,” explained Singh.

“Furthermore, there is a need to increase focus on research. Globally, research institutes conduct research and industries commercialise the findings. However, Singh noted that there isn’t a similar ecosystem in place here.

Regarding the change in the MSME definition, Badish Jindal, President of the Federation of Punjab Small Industries Associations (FOPSIA), said that this adjustment would disproportionately benefit just 1% of MSMEs with higher turnovers, who are set to receive 95% of the benefits. “In India, 67% of MSMEs report a turnover of less than Rs 10 lakh, while 99% have a turnover below Rs 1 crore. The increase in the definition of MSME turnover from Rs 250 crore to Rs 500 crore shows the intention of the government to give benefits to the corporates,” Jindal said.

Varun Gupta, Regional Head-North RO, BSE India, joined the stage for an exclusive IPO Masterclass. Gupta highlighted how SMEs can use BSE’s platform to raise capital for their growth. Gupta's insightful masterclass focused on assisting MSMEs with their IPO process. “We broadly provide a platform to the companies to raise capital for expansion, acquisitions, and working capital requirements and help the interested investors meet the companies,” said Gupta, who also took the time to address and respond to various queries and concerns raised by the companies in attendance.

Sunil Gandhi, Chief Regional Manager of Ludhiana RO, The New India Assurance, shared valuable insights during a fireside chat on the topic ‘Safeguarding Success: The Essential Role of Business Insurance for MSME Resilience and Growth.’ He stressed the significance of prioritising insurance, highlighting its crucial role in protecting businesses from unexpected challenges and uncertainties.

“As far as MSMEs are concerned, there is a lack of knowledge of insurance. People are unaware of this in India. Most businesses give insurance a low priority. Only 15% of businesses have adequate insurance coverage. The rest remains uninsured. We call this gap a ‘missing middle,’ but we have already started working on it,” said Gandhi.

The Ludhiana SME Summit provided a dynamic platform for small businesses and industry leaders to converge, collaborate, and explore new avenues for growth. The event facilitated valuable networking opportunities, empowering SMEs to discover fresh prospects, forge meaningful connections, and propel their businesses forward.

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