MSMEs survey: 61% say govt skill and talent programs ‘ineffective’, 88% agree govt spend pushes capex plan, finds report | Company Business News

A majority of the Micro, Small and Medium Enterprises (MSMEs) surveyed in a Cushman & Wakefield report on the sector, felt that skilling and talent programmes run by the government are ineffective for them, ANI reported.

As many as 71 per cent of manufacturing MSMEs, felt that government-run skill-training programmes haven’t helped them. Overall, 61 per cent of MSMEs said the initiatives had not reached them, and 39 per cent affirmed that they had received benefits, the report added.

All companies surveyed had less than 500 employees.

Infra spending impact on capex plans: 88% agree

Apart from various skilling schemes, the government has earmarked ₹2,500 crore for 12 sector-specific plug-and-play parks to speed plan setup, slash capex, help SMEs and attract Foreign Direct Investments (FDI).

What measures can bridge gap?

“India must address deep-rooted cost and capacity gaps — especially in logistics, integrated facilities, and MSME productivity,” according to Gautam Saraf, Executive MD, Mumbai & New Business, Cushman & Wakefield.

The report noted that challenges persist for the MSME sector. High logistics costs, low warehousing capacity (0.2 sq. ft. per urban resident vs. 47.3 in the US), minimal domestic value addition (17 per cent vs. China’s 25 per cent), and skill gaps, especially in MSMEs, threaten long-term competitiveness.

“Plug-and-play industrial parks, multimodal logistics networks, and improved land aggregation frameworks are not just enablers; they are essential levers for converting policy momentum into production-ready outcomes,” Saraf added.