PM Modi Advocates Enhanced Focus on MSMEs During G20 Trade Ministers' Summit

Prime Minister Narendra Modi on Thursday called for greater attention to micro, small and medium enterprises (MSMEs) at the G20 Trade and Investment Ministerial in Jaipur.

He said that MSMEs account for 60-70% of employment and contribute 50% to the global gross domestic product (GDP).

Modi stressed the need to empower MSMEs and said that their empowerment would translate to societal empowerment. He also suggested that G20 trade ministers work collectively to ensure equitable competition between large and small sellers in the fast-growing cross-border e-commerce market.

He also emphasized the need to address the problems faced by consumers in fair price discovery and grievance handling mechanisms.

Modi said that India was able to forge a consensus to safeguard the interests of millions of farmers and small businesses at the World Trade Organization (WTO). He also said that the current global challenges, from the pandemic to geopolitical tensions, have tested the world economy.

He said that it is the responsibility of the G20 to rebuild confidence in international trade and investments. He also said that it is important to build resilient and inclusive global value chains that can withstand future shocks.

During the working group meetings that started in March, five priority areas were identified – trade for growth and prosperity, resilient trade and global value chains, integrating MSMEs in world trade, logistics for trade, and WTO reforms.

Empowering MSMEs for Societal Progress:

Addressing the assembled delegates, Modi emphasized the need to accord greater attention to MSMEs, acknowledging their integral role in the global economy. With the capacity to generate 60-70 percent of employment and contribute 50 percent to the worldwide gross domestic product, MSMEs warrant continued support for their empowerment, which directly translates to the advancement of societies.

Ensuring Equitable Competition and Addressing Challenges:

PM Modi urged the G20 trade ministers to collaborate in establishing equitable competition grounds for both large and small-scale sellers. Notably, he highlighted the challenges arising in the rapidly expanding realm of cross-border e-commerce.

Additionally, he stressed the importance of tackling issues faced by consumers in areas such as fair price determination and efficient grievance redressal mechanisms.

India's Role in Global Trade:

Modi proudly noted India's successful efforts in safeguarding the interests of farmers and small businesses through a consensus achieved at the World Trade Organization (WTO).

Amidst prevailing global challenges, ranging from the pandemic to geopolitical tensions, the Prime Minister asserted the G20's responsibility to rebuild confidence in international trade and investments.

Strengthening Global Value Chains:

The Prime Minister expressed the imperative to construct resilient and inclusive global value chains capable of withstanding future shocks. Highlighting India's proposition to formulate a Generic Framework for Mapping Global Value Chains, Modi elaborated on the framework's purpose, aiming to assess vulnerabilities, mitigate risks, and enhance overall resilience.

Priority Areas and Meeting Progress: Throughout the series of working group meetings leading up to the G20 Trade and Investment Ministerial, five priority areas were identified: trade for growth and prosperity, resilient trade and global value chains, MSME integration in world trade, trade logistics, and WTO reforms.

While significant progress has been achieved in these deliberations, uncertainty looms over the issuance of a joint communique due to historical diplomatic tensions between Western nations and Russia, particularly concerning the situation in Ukraine.

Some relevant and latest facts for the above news:

• The G20 Trade and Investment Ministerial was held in Jaipur, India on August 24-25, 2023.

• The meeting was attended by trade ministers from the G20 countries, as well as representatives from the WTO and other international organizations.

• The main agenda items for the meeting were:

  • Promoting trade and investment for growth and prosperity

  • Building resilient and inclusive global value chains

  • Integrating MSMEs in world trade

  • Improving logistics for trade

  • Reforming the WTO

• The meeting concluded with a joint statement in which the ministers committed to working together to address the challenges facing the global economy and to promote trade and investment for the benefit of all.

Here are some additional facts that are relevant to the news article:

• MSMEs are the backbone of the Indian economy, accounting for 60-70% of employment and 50% of GDP.

• India has been a strong advocate for the interests of MSMEs at the WTO and in other international forums.

• The current global challenges, from the pandemic to geopolitical tensions, have had a disproportionate impact on MSMEs.

• It is important for the G20 to work together to ensure that MSMEs have the support they need to weather these challenges and continue to contribute to global growth and prosperity.

Conclusion: Prime Minister Modi's address at the G20 Trade and Investment Ministerial accentuated the indispensability of nurturing MSMEs in global economies.

His call for concerted efforts to foster fair competition, strengthen global value chains, and address emerging challenges resonates as a decisive step toward fostering resilient and inclusive international trade networks.