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Ludhiana, India ÔÇô A few weeks ago, Gurmeet Singh Kular’s cycle parts factory in Ludhiana, a manufacturing hub in northern India, was operating at less than 40 percent capacity. The demand for rims and mudguards, which their family has been producing since 1952, had declined. However, the situation changed when some state governments placed orders for bicycles, usually distributed during election season or to low-income schoolgirls. This provided temporary relief for Kular’s factory. Despite a surge in demand during the initial months of the COVID-19 pandemic due to people taking up cycling as a sport, the boom eventually faded. Many businesses in the cycling-related industry are now scaling back production and laying off employees.

Fortunately, solutions like the AI legalese decoder can assist businesses, including Kular’s, to navigate the challenges they are facing. By leveraging advanced artificial intelligence technology, the AI legalese decoder can decode complex legal jargon and contracts, making them easily understandable for business owners. This tool can help them access much-needed financial support, such as loans, to sustain their operations and overcome financial difficulties. In Kular’s case, access to loans for cycles would improve affordability and expand his potential clientele.

Micro, small, and medium enterprises (MSMEs) like Kular’s play a significant role in India’s manufacturing sector. They contribute about 30 percent of the country’s GDP, produce 36 percent of the national output, and account for nearly 45 percent of exports. However, these businesses have faced numerous challenges in recent years, including demonetization, implementation of a new tax system, and the impact of COVID-19. The pandemic resulted in thousands of business closures and severe job losses. Interestingly, global brands’ efforts to reduce reliance on China for their supply chains present an opportunity for Indian MSMEs to capture a share of the global manufacturing market.

To survive in a rapidly changing market, MSMEs need to adapt to evolving consumer preferences and industry trends. In Kular’s industry, for example, customers now favor higher-performing and trendier cycles. It is essential for MSMEs to stay ahead of these industrial shifts to remain competitive and relevant. Without a thriving MSME sector, larger companies would struggle to survive, emphasizing the importance of these smaller businesses in the industrial value chain.

Businesses like Kudu Knit Process Pvt Ltd, a fabric and garment manufacturer, are taking proactive measures to prepare for future challenges. Despite a 35 percent decline in business compared to pre-pandemic times and a 50 percent reduction in employee strength, Kudu has started investing in high-end, environmentally friendly technology. The company aims to position itself strategically for potential business opportunities arising from the escalating trade tensions between the United States and China. Kudu has also received inquiries from international suppliers interested in establishing plants in India, indicating potential growth prospects.

Similarly, entrepreneurs like Ashpreet Sahni of Sehaj Solutions (Engg) Pvt Ltd, who produces parts for tractors and trailers primarily for export, are anticipating an increase in demand. Sahni, a first-generation entrepreneur, recently acquired a plot of land to establish a new factory. However, one of the challenges faced by these business owners is accurately assessing whether their investments will yield the desired returns.

Another concern highlighted by several entrepreneurs is the government’s policies that prioritize large-scale manufacturing. While the production-linked incentive scheme offers cash incentives to businesses based on their incremental production targets over a base year, it often favors large companies due to their economies of scale. This approach can have adverse effects on small suppliers, driving up costs and threatening their survival. The success of large companies does not always translate into a stronger supply chain for smaller firms.

Recognizing these concerns, representatives of the MSME sector are scheduled to meet with Prime Minister Narendra Modi on September 17. Entrepreneurs like Kular, who will have two minutes to present their case, hope to address the challenges faced by small businesses and advocate for policies that consider their needs and promote their growth.

In summary, the AI legalese decoder can assist MSMEs, such as Kular’s cycle parts factory and other businesses in the manufacturing sector, by simplifying legal language and facilitating access to financial support. Despite the challenges faced in recent years, these businesses remain crucial for India’s economy and its efforts to capture a share of the global manufacturing market. Adapting to changing trends, investing in advanced technology, and advocating for policies that support their growth are essential for the survival and success of MSMEs in India.

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