PIB Summaries 03 May 2025

Content:

1. Prime Minister Shri Narendra Modi dedicates Vizhinjam International Seaport in Kerala worth ₹8,800 crore to the nation
2. NITI Aayog Releases Report on “Enhancing Competitiveness of MSMEs in India”

Prime Minister Shri Narendra Modi dedicates Vizhinjam International Seaport in Kerala worth ₹8,800 crore to the nation

Vizhinjam Port: Strategic and Economic Significance

• First dedicated container transshipment port in India; developed at a cost of ₹8,800 crore.
• Located near one of the world’s busiest international sea routes, ensuring strategic maritime advantage.
• Possesses a natural draft of ~20 meters, enabling docking of ultra-large cargo vessels.
• Aims to reduce India’s reliance on foreign transshipment hubs like Colombo, Singapore, and Port Klang.
• Expected to triple transshipment capacity in coming years, aiding in freight cost reduction and foreign exchange savings.

Relevance : GS 2(Infrastructure)

Maritime Sector and Trade Infrastructure

• 75% of India’s transshipment currently occurs at foreign ports — this port is a step toward reversing that trend.
• Will serve as a gateway for international trade, enhancing the global competitiveness of Indian goods.
• Facilitates better logistics performance and contributes to improved trade balance and export efficiency.

Integrated Infrastructure under National Missions

• Developed under the Sagarmala Programme, which aims to:
  • Modernize port infrastructure.
  • Improve port-linked industrialization.
  • Enhance coastal community development.
• Linked with PM-Gati Shakti Master Plan to ensure multi-modal connectivity (rail, road, waterways, air).
• Port infrastructure integrates with national logistics networks for faster turnaround and last-mile connectivity.

Efficiency and Global Ranking

• Turnaround time at major Indian ports has improved by 30% over the past decade.
• India now handles more cargo in less time, boosting overall economic productivity.
• Two Indian ports are now among the top 30 globally, and India has improved in the Logistics Performance Index.

Public-Private Partnership (PPP) and Investment

• Development through PPP model, attracting thousands of crores in private investment.
• Encourages technological innovation and ensures ports are future-ready and globally competitive.

Employment and Industrial Growth

• Will contribute to the creation of a shipbuilding and repair cluster in Kochi.
• Expected to generate thousands of direct and indirect jobs, benefiting local communities.
• Strengthens MSME ecosystem, especially those involved in marine supplies, logistics, and ancillary services.

Maritime Amrit Kaal Vision and Global Corridors

• Port is part of India’s Maritime Amrit Kaal Vision — a long-term strategy for maritime growth.
• Kerala is positioned as a key link in the India-Middle East-Europe Economic Corridor (IMEEC).
• Enhances India’s strategic role in global maritime trade corridors.

Seafarer Reforms and Capacity Building

• Regulatory reforms in the maritime workforce:
  • Number of registered Indian seafarers increased from 1.25 lakh (2014) to 3.25 lakh (2024).
  • India ranks among the top 3 countries for seafarer workforce globally.

Broader Infrastructure Push in Kerala

• State witnessing holistic infrastructure upgrades:
  • Completion of delayed projects like Kollam Bypass and Alappuzha Bypass.
  • Enhanced rail and air connectivity including the induction of Vande Bharat trains.

Coastal Economy and Blue Revolution

• Focus on fishermen welfare under:
  • Pradhan Mantri Matsya Sampada Yojana and Blue Revolution.
  • Modernization of fishing harbours like Ponnani and Puthiyappa.
  • Provision of Kisan Credit Cards to fishermen for improved financial inclusion.

Historical and Civilizational Perspective

• Kerala has historically been a maritime trade hub connecting India with West Asia and Europe.
• Revitalizing port infrastructure echoes India’s ancient maritime glory and cultural outreach.

NITI Aayog Releases Report on “Enhancing Competitiveness of MSMEs in India”

Context and Purpose of the Report

• Released by NITI Aayog in collaboration with the Institute for Competitiveness (IFC).
• Provides a comprehensive blueprint to enhance the competitiveness of Micro, Small and Medium Enterprises (MSMEs) in India.
• Uses firm-level data and Periodic Labour Force Survey (PLFS) to analyse ground-level challenges and opportunities.

Relevance : GS 2(Governance) ,GS 3(Indian Economy)

Focus Areas

• Targets four priority sectors:
  • Textiles and apparel
  • Chemical products
  • Automotive
  • Food processing
• Seeks to address both common structural issues and sector-specific challenges.

Key Challenges Identified

1. Limited access to formal credit
   1. Formal credit access (2020–2024):
      1. Micro & Small Enterprises: ↑ from 14% to 20%
      1. Medium Enterprises: ↑ from 4% to 9%
   1. Still, only 19% of MSME credit demand met by FY21.
   1. Estimated credit gap: ₹80 lakh crore.

• CGTMSE (Credit Guarantee Fund Trust for MSEs)
  • Expanded in recent years but faces implementation constraints.
  • Needs restructuring and institutional collaboration for greater reach.

• Skill Shortages
  • Majority of the MSME workforce lacks formal technical/vocational training.
  • Low productivity and limited scalability.

• Low investment in R&D and innovation
  • Hampers quality improvements and global market access.

• Technology Adoption Barriers
  • Poor electricity supply and digital infrastructure.
  • High cost of implementation and low awareness of tech-support schemes.

• Marketing and Branding Limitations
  • Weak outreach and branding strategies, especially in rural and cluster-based MSMEs.

Policy and Governance Gaps

• Low awareness of central/state schemes.
• Gaps in implementation and data integration.
• Weak stakeholder engagement at grassroots level.

Recommendations by the Report

1. Credit Access
   1. Revamp CGTMSE with more targeted and inclusive financial products.
   1. Improve credit assessment mechanisms using data-driven tools

• Skill Development
  • Strengthen linkages between MSMEs and skilling institutions.
  • Promote industry-specific upskilling, especially for informal workers.

• Technology Modernization
  • Upgrade outdated machinery through cluster-based schemes.
  • Incentivize R&D and tech adoption via state-level grants and subsidies.

• Market Access & Digital Integration
  • Training in digital marketing and e-commerce platforms.
  • Partner with logistics providers to streamline supply chains.
  • Develop direct market linkage platforms for remote regions.

• Policy Revamp
  • Cluster-based, state-level policy frameworks with adaptive design.
  • Emphasize monitoring, data integration, and state capacity building.
  • Special attention to MSMEs in northeast and eastern India for inclusive development.

Significance for India’s Economic Growth

• MSMEs account for ~30% of GDP and 45% of exports.
• Reforms can transform MSMEs into growth engines for:
  • Employment generation
  • Export competitiveness
  • Innovation-led growth