Odisha MSMEs: A Thriving Ecosystem with MSME Odisha Portal

Published By: Tata nexarc | Published On: 14th June 2024 | 5 min read

Table of contents:

An Overview

The Odisha government launched the MSME Odisha Portal (msme.odisha.gov.in) in June 2023, aiming to streamline processes and empower MSMEs in the state. The MSME Odisha Portal reflects the government's commitment to fostering a more supportive and efficient ecosystem for MSMEs. Here are some key reasons for launching the portal:

Reducing Delays: As per a 2023 report by the MSME Department, Odisha, delays in application processing were a major concern for entrepreneurs. The online portal aims to address this by streamlining procedures.

Increasing Transparency: A 2024 survey by the Federation of Odisha Micro and Small Enterprises (FOMSE) indicated a need for improved communication regarding government schemes. The portal addresses this by providing clear and accessible information.

Promoting Ease of Doing Business: The online platform aligns with the government's broader initiative to improve the ease of doing business in Odisha, making it more attractive for entrepreneurs.

Benefits for MSMEs:

• Reduced Time and Costs: The online application process saves time and travel expenses associated with traditional paper-based applications.
• Improved Efficiency: Faster processing times through the portal contribute to quicker access to government support.
• Enhanced Transparency: Easy access to information and application status updates empowers informed decision-making for entrepreneurs.
• Knowledge Sharing: The resource hub on the portal provides valuable guidance and support for MSMEs in various aspects of business operations.
• Simplified Application Process: Entrepreneurs can apply for various government schemes, subsidies, and financial assistance programs directly through the portal. This eliminates the need for physical paperwork and reduces processing times.
• Transparency and Accessibility: The portal provides clear information on all MSME-related initiatives, eligibility criteria, and application procedures. This transparency fosters ease of doing business and empowers informed decision-making.
• Online Tracking System: Applicants can track the status of their applications submitted through the portal, ensuring greater transparency and accountability.
• Resource Hub: The portal serves as a one-stop resource center for MSMEs, offering downloadable forms, notifications on upcoming events, and informative articles related to finance, marketing, and legal compliance.

Source: msme.odisha.gov.in

From traditional handicrafts to modern IT services, the state's industrial landscape is vibrant and dynamic. The government's proactive approach in providing infrastructure, financial support, and skill development programs has further fuelled the growth of MSMEs in the region. Additionally, the government regularly releases Odisha tenders for various projects and services like PMGSY tenders for rural development and PWD tenders for urban developments, creating lucrative opportunities for MSMEs to participate in and contribute to the state's development.

Key Industries Driving MSME Success in Odisha

Food Processing: Odisha's fertile land, abundant water resources, and rich marine life have made it a haven for food processing industries. MSMEs engaged in seafood processing, fruit and vegetable preservation, dairy products, and confectionery have found immense success in the state. The government's focus on promoting food parks and cold storage facilities has further strengthened this sector.

Textiles & Apparel: Odisha has a long-standing tradition of textile weaving and handloom artisanry. The state's handloom clusters produce exquisite sarees, fabrics, and other textile products that are in high demand both domestically and internationally. MSMEs in this sector have the potential to thrive by leveraging traditional skills, modern technology, and e-commerce platforms.

Manufacturing: Odisha's industrial landscape is expanding rapidly, with manufacturing clusters emerging across the state. MSMEs involved in metal fabrication, auto components, plastics, electronics, and other manufacturing activities are finding ample opportunities to grow. The government's policies aimed at promoting manufacturing, such as the "Make in Odisha" initiative, have attracted significant investments and created a favourable environment for MSMEs.

Tourism & Hospitality: Odisha's rich cultural heritage, ancient temples, pristine beaches, and wildlife sanctuaries attract many tourists each year. MSMEs in the tourism and hospitality sector, including hotels, resorts, tour operators, and local handicraft businesses, are thriving by catering to this growing demand. The government's focus on promoting tourism has further boosted this sector.

Government Initiatives Boosting Odisha's MSMEs

The Odisha government has implemented several initiatives to foster MSME growth in the state:

Startup Odisha: This initiative provides a comprehensive ecosystem for startups, including incubation support, mentorship, funding, and market access. MSMEs with innovative ideas and scalable business models can benefit greatly from this program. Startups in Odisha have greatly benefited from these initiatives.

MSME Development Policy 2022: This policy outlines various measures to support MSMEs, including financial assistance, tax incentives, simplification of regulations, and infrastructure development. It aims to create a conducive environment for MSMEs to thrive.

Skill Development Programs: Odisha is investing heavily in skill development programs to create a skilled workforce for MSMEs. These programs equip individuals with the necessary skills to find employment in various sectors, contributing to the overall growth of the MSME ecosystem.

Financial Assistance and Subsidies

The Odisha government offers various financial assistance schemes and subsidies to MSMEs. These include:

Odisha State Financial Corporation (OSFC): Provides term loans and working capital loans to MSMEs.

National Small Industries Corporation (NSIC): Offers credit support and marketing assistance to MSMEs.

District Industries Centres (DICs): Provide guidance and support to MSMEs at the district level.

Additionally, MSMEs can leverage the services of Tata nexarc, a digital platform that connects businesses with buyers, suppliers, and help MSMEs in government e-tendering processes. Tata nexarc facilitates access to a wide range of resources, including raw materials, financing options, and market opportunities, empowering MSMEs to overcome challenges and achieve sustainable growth.

Future Prospects and Opportunities

The future looks bright for MSMEs in Odisha. The state's focus on industrialization, infrastructure development, and skill enhancement is expected to create a conducive environment for businesses to thrive.

Moreover, the government's commitment to promoting exports and attracting foreign investment will open up new markets for MSMEs. In the capital, tenders in Bhubaneshwar can easily attract suitable vendor and aspiring businessmen due to its popularity.

Conclusion

Odisha is a land of immense opportunities for MSMEs. With a diverse range of sectors, supportive government policies, and a growing entrepreneurial ecosystem, the state is poised for rapid economic growth. By leveraging available resources, adopting innovative technologies, and exploring emerging markets, MSMEs can carve a niche for themselves and contribute to Odisha's economic transformation.

Frequently Asked Questions (FAQs)

Q: What are the top industries for MSMEs in Odisha?

Key industries include agriculture and food processing, handicrafts, textiles, IT, chemicals, pharmaceuticals, and mining.

Q: How can MSMEs in Odisha benefit from government schemes?

The government offers financial assistance, subsidies, and skill development programs tailored to support MSMEs.

Q: How can I apply for MSME tenders in Odisha on Tata nexarc?

Visit Tata nexarc, navigate to the tender section, and follow the step-by-step application guide provided.

Q: What challenges do MSMEs face in Odisha?

Common challenges include limited access to finance, inadequate infrastructure, and skill gaps among the workforces.

Q: What is the future outlook for MSMEs in Odisha?

The future looks promising with increased government support, technological adoption, and emerging market opportunities.