Pune: The 6th edition of the Asia Economic Dialogue (AED) 2025, co-hosted by the Ministry of External Affairs (MEA) and Pune International Centre (PIC), successfully concluded in Pune on Saturday (February 22). The three-day international conference, themed ‘Economic Resilience and Resurgence in an Era of Fragmentation’, brought together more than 40 industry leaders, policymakers, and academicians from nine countries, including Australia, Japan, Germany, and South Africa.

A key highlight of the final day was a session titled ‘Unlocking Growth Potential by Empowering MSMEs’, chaired by Prashant Girbane, Hon. General Secretary of PIC and Director General of MCCIA. The session featured distinguished panelists:

• S C L Das (Secretary, MSME, India – Virtual Participation)

• Ateesh Kumar Singh (Joint Secretary, MSME, India)

• Tomo Kawane (Senior Researcher, Keio University, Japan)

• Reinhold von Ungern-Sternberg (Director, International Markets, BVMW, Germany)

Key Takeaways: MSMEs Driving Economic Growth

1. MSMEs: India’s Second Economic Engine

Speaking virtually, S C L Das underscored the crucial role of Micro, Small, and Medium Enterprises (MSMEs) in India’s economic framework. He noted that MSMEs contribute significantly to the five E’s – Economy, Employment, Exports, Empowerment, and Environment. He highlighted that MSMEs account for 45% of India’s total exports and are key to employment generation, sustainability, and women’s entrepreneurship.

However, MSMEs continue to face structural challenges, including limited access to credit, technology, and skilled labor. Addressing these, the formalisation drive launched in July 2020 has registered over 60 million MSMEs, with a target of 80 million by 2025. Notably, women-led enterprises now constitute 39% of the total registered MSMEs, reflecting a significant rise in female entrepreneurship.

2. Strengthening MSMEs Through Formalisation and Policy Support

Ateesh Kumar Singh emphasized that formalisation is critical for MSMEs to access financing and global markets. He outlined several government initiatives, including:

• The Jan Vishwas Bill (2024) – decriminalizing minor compliance violations to ease business operations.

• Emergency Credit Line Guarantee Scheme – providing liquidity support.

• RAMP Initiative (Raising and Accelerating MSME Performance) – focusing on upskilling and promoting technological advancements.

3. Indo-Japanese Collaboration: Leveraging India’s Young Workforce

Ms. Tomo Kawane addressed the challenges faced by Japanese SMEs due to an aging workforce and succession issues. She noted that collaboration with India could offer solutions, particularly through its young and innovation-driven workforce. She also pointed out that Japan can learn from India’s ‘sewa’ (selfless service) and ‘jugaad’ (frugal innovation) culture to enhance business adaptability.

4. India-Germany Partnership in MSMEs

Reinhold von Ungern-Sternberg highlighted that MSMEs form the backbone of Germany’s economy, contributing 50% to the country’s GDP and employing 60% of its workforce. He stressed that Indo-German partnerships in the MSME sector could strengthen workforce stability, corporate identity, and shared business values.

Summing up the session, Prashant Girbane reiterated that resilient economies depend on resilient MSMEs. He emphasized that increased investment and policy support are key to unlocking the full potential of the MSME sector, which remains a critical driver of economic growth, job creation, and global collaboration.