Archive · 29 Jun 2025
MSMEs Unhappy with Govt. Skills Programs, Report Says
Many small factories in India, called MSMEs, say that the government's programs to teach workers new skills haven't helped them.
Most of these factories also haven't even heard of the programs.
However, government spending on better roads and factories has helped some of these factories.
The problem is that it is still expensive to move things around.
Also, these factories are not as productive as larger ones.
The government hopes that by building better roads and factories, and by improving worker skills, things can improve for small businesses and the economy.
71% of manufacturing MSMEs report government skill training programs are unhelpful.
61% of MSMEs say they haven't been reached by government skill initiatives.
88% of MSMEs have been influenced by government infrastructure spending in their capex plans.
93% of respondents see better efficiency with modern parks and corridors.
High logistics costs, low warehousing capacity, and skill gaps are key challenges.
- Who
- Manufacturing MSMEs, government, Cushman & Wakefield.
- What
- MSMEs report limited effectiveness of government skill training programs, despite infrastructure improvements.
- When
- Report released in June 2025, analyzing current conditions.
- Where
- India
- Why
- To assess the effectiveness of government initiatives and identify challenges to manufacturing.
MSMEs' Perspective
Government's Perspective
Program Effectiveness vs. Infrastructure Impact
MSMEs' Perspective
Government skill programs are largely ineffective for MSMEs.
Government's Perspective
Government investment in infrastructure improves efficiency.
- MSMEs reporting unhelpful skill programs
- 71%
- MSMEs untouched by skill initiatives
- 61%
- MSMEs influenced by infrastructure spending
- 88%
- MSME contribution to sector output
- 40%
- Worker productivity gap
- 14% (relative to large plants)
- Domestic value addition
- 17%