Vadodara, Sep 29 : Chief Minister Bhupendra Patel said on Sunday that MSMEs are the backbone of Gujarat's economy and play a crucial role in India's development.

Patel, while addressing a regional conference organised by Laghu Udyog Bharati in Vadodara, reiterated the government's commitment to providing global platforms for MSMEs (Micro, Small, and Medium Enterprises) to compete internationally and foster innovation.

The CM underlined the importance of collective efforts in realising Prime Minister Narendra Modi's vision of a developed India through 'Sabka Saath, Sabka Vikas, Sabka Vishwas, and Sabka Prayas.'

He credited PM Modi's leadership for the transformative changes in India's manufacturing sector, which have opened new opportunities for growth and development across industries.

In his address, Patel celebrated the 10-year milestone of the "Make in India" initiative, which has positioned India as a manufacturing and innovation hub. He highlighted key achievements, including India's emergence as the world's second-largest mobile phone manufacturer and advancements in sectors such as space, semiconductors, and electric vehicles.

Patel stressed the need for MSMEs to adopt cutting-edge technologies to boost productivity and efficiency. He acknowledged Laghu Udyog Bharati's efforts in supporting small enterprises and encouraged continued work to promote innovation in alignment with national priorities such as 'Zero Defect, Zero Effect.'

He assured the industry that Gujarat remains the most favoured destination for investments due to its progressive policies and ease of doing business.

Reaffirming the state government's commitment to resolving the challenges faced by MSMEs, Patel urged small businesses to leverage government policies for growth. He expressed optimism about the future of MSMEs, predicting that new opportunities for startups and industries will emerge, helping India on its path to becoming the world's third-largest economy.

Ghanshyambhai Oza, National President of Laghu Udyog Bharati, highlighted that MSMEs contribute approximately 35 per cent to India's GDP. He praised the organisation's expansion, from 50 entrepreneurs in 1994 to over 55,000 across 490 districts today, and acknowledged its critical role in driving industrial growth.

In August 2024, Gujarat crossed the 20 lakh mark in Udyam MSME registrations, making it the fifth state in the country in terms of total registrations. The states ahead of Gujarat are Maharashtra, Tamil Nadu, Uttar Pradesh and Rajasthan.

Out of the 20 lakh registered units, Gujarat accounts for 19.10 lakh micro enterprises, 81,841 small units, and 8,460 medium units. Notably, Gujarat ranks second after Maharashtra in the number of medium enterprises.

Despite this achievement, experts suggest that the actual number of MSME units in Gujarat may be much higher. Many units do not register with Udyam for various reasons, indicating that the state's true MSME potential might be underrepresented.

/IANS