6  BIS central bankers’ speeches  (viii)  Infrastructure  To ensure competitiveness of the MSEs, it is essential that the availability of infrastructure, technology and skilled manpower are in tune with the global trends. MSEs are either located in industrial estates set up many decades ago, or have come up in an unorganized manner in rural areas.
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.