In the changing scenario,
stakeholders need to infuse sustainability dimensions into international
trade and business dimensions into the ‘Green Economy’. Achieving this
strategy will help build the role and voice of Micro, Small and Medium
Enterprises (MSMEs) of developing countries into the formulation of
national and global policies for trade development.
In the arena of developing
green business ethics in India, we need to analyse the four critical
elements and ponder upon the possible solutions. These four elements are
economic growth, environmental resources, jobs and trade dynamics.
As far as Indian economic
growth is concerned, we all know that India’s annual per capita income
is significantly low and growing at an equally slow pace. Only a few
products that the poorer sections buy are made by the organised
industrial sector. Sustained economic growth will necessitate a growing
demand for products, and the creation of such demands will require
opening up of new, lower income markets. This production cannot be
realised if MSMEs are not mainstreamed and integrated with both trade
development and economic growth.
Thereby, India needs to produce more goods and services for basic needs
and must generate broader-based purchasing power to buy these goods and
services.
Some environmental concerns and
the resource utilisation patterns need to be confronted; otherwise it
may be too late to recover from the loss. Over the past fifty years,
India’s forest cover has declined steadily. Transportation fuels account
for half of India’s imports, which is mostly consumed by urban
pollution. Water scarcity is now a major constraint in industry,
agriculture and households. Millions of villagers move each year to
inhuman city slums for their so-called improved prospects.
India needs to use a sustainable technology based
on renewables and eco-efficiency and then build up stronger, viable
production systems at the local level.
The employment generation is
getting worse. To close the employment gap by 2015 will require
approximately two million jobs every year. Growth of rural off-farm
employment is slowing down sharply. The capital cost of creating a job
in a large industry is huge and under the present threat of slow down,
the attitude of industry is going to be more cautious. Large industries
can only generate fewer jobs. MSMEs account for more than two-third of
the existing jobs but in an unsustainable manner.
India needs to have greater investment in
decentralised mini enterprises that use sustainable technology – to
create livelihoods and generate products for the local market.
The MSME sector constitutes
~34% of all national manufacturing exports, but the lack of credit is
hampering further growth in the sector. Development of green trade and
services is not consolidated and access to markets is not yet
channelised. Standardisation certifications and quality control measures
need to be strengthened for green MSMEs. Currently, there are no quality
benchmarks for green businesses.
Alternate avenues of financing these MSMEs need to be developed. It has
to be aligned with other sectors and advantageous environment for these
MSMEs need to be nurtured. Green benchmarks to be institutionalised for
penetration in global markets.
In addition to activating
effective national and international partnerships in the green business
arena, there is a growing need to combine learning, expertise sharing,
interactive dialogue, networking, policy advocacy and business matching.
Therefore, the green menu for strengthening MSME sector is to: