The state of infrastructure, including power, water, roads, etc. in such areas is inadequate and unreliable. Further, the MSE sector in India, with some exceptions, is characterized by low technology levels, which acts as a handicap in the emerging global market. Technological upgradation of the units would help in enhancing capacity and increase supplies which would also help to combat inflation.
Need for marketing, research etc. is also critical. The Prime Minister’s Task Force on MSMEs recommended several measures having a bearing on the functioning of MSMEs, viz., credit, marketing, labour, exit policy, infrastructure/technology/skill development and taxation.