“The day is not far when India will be the hub of industrial manufacturing, and the world will be looking towards us.” These words of Hon. PM Narendra Modi (15 August 2024) stayed with me at the MSME Adhiveshan in Goa, organised by Laghu Udyog Bharati. At the programme, Director CSIR–NIIST, Dr. C. Anandharamakrishnan, spoke about how CSIR (Council of Scientific and Industrial Research) can help power the next phase of growth for MSMEs. What I appreciated was the practicality. The focus was not on complex theory but on solutions that can be implemented on the ground.
India’s manufacturing base is already significant. Manufacturing contributes about 17% to India’s GDP, accounts for 17.5% of industrial production, and provides employment to over 273 million people. The manufacturing ecosystem is broad—chemicals and materials, electronics and energy, agri-food and biotech, heavy engineering and automobiles, textiles, and healthcare all contribute in different ways. This breadth is a strength, but it also means we need multiple “tools” to improve productivity, reduce waste, upgrade quality, and keep costs under control.
And then there are MSMEs—2.32 crore of them across the country—creating jobs, building supply chains, and supporting exports. The real question is: how do we equip them to compete in a world where markets are demanding not just quality and price, but also responsible production?
A key idea discussed was the direction in which manufacturing is headed. We have moved from traditional manufacturing to ‘Lean’ manufacturing (which focuses on cutting waste), and we are now steadily moving towards green, sustainable manufacturing. In simple words, “lean” is about reducing waste—waste of material, time, movement, inventory, or effort. “Green” is about environmentally responsible processes, anchored in the basics of reduce- reuse- recycle. “Sustainable” goes a step further: it builds long-term competitiveness while keeping resources, people’s health and safety, and the environment in mind.
This shift is not optional. India’s energy consumption growth is projected at 129% between 2015 and 2035—the highest among major economies—and India is also the world’s fourth-largest emitter of carbon dioxide. Globally, the objective highlighted is to limit warming to ideally 1.5°C, with 2°C as the maximum threshold. For MSMEs, these are not distant numbers. They will show up as real expectations—from customers, global buyers, lenders, and even within supply chains—around energy use, waste management, and carbon footprint.
So where do MSMEs begin? They begin with access—access to practical science that can be adopted, adapted and scaled. That is exactly where CSIR becomes relevant.
One strong example shared was second-generation (2G) ethanol under the Biomass-to-Fuel programme (Pradhan Mantri JI-VAN Yojana). The core idea is simple: convert biomass into fuel. What makes it important is that it demonstrates the “how” in a real facility—showing steps like pretreatment, fermentation and distillation, along with careful water management through recycling and minimal discharge. For MSMEs, the lesson is encouraging: clean fuel solutions can be built around Indian conditions, and industry can participate through supply, fabrication, services, and local innovations around the value chain.
Another powerful concept presented is the CSIR–NIIST Hydrogen Valley Innovation Cluster. It shows an integrated ecosystem—from renewable inputs and electrolysis to ammonia production and storage, to hydrogen-powered public transport. It also links this to green ammonia and green urea for agriculture, and points to the movement of ammonia via Vizhinjam Port. The takeaway for me was the “systems approach”. A green transition doesn’t happen in silos. It happens when energy, transport, industry and agriculture move together.
Sustainability is not only about big plants and large infrastructure. It is also about everyday spaces—how we handle waste and how we keep the air cleaner. One example given to quote was an NIIST biodigester at Thiruvananthapuram International Airport converting food waste into bioenergy, and the airport being recognised for a zero-waste-to-landfill milestone. Alongside were self-powered environmental sensors and air-quality monitors designed to work even with indoor light. These may appear like small interventions, but they represent a very important point: when technology becomes practical and easy to deploy, sustainability becomes doable—at homes, campuses, hospitals, airports, and workplaces.
On the topic of air quality, the message was easy to understand: solutions are being developed and tested in real settings to improve indoor air and reduce harmful pollutants. The emphasis was on real-world performance, not lab-only claims. This matters because it creates a pathway for MSMEs to participate—not only as users of technology, but also as manufacturers and service providers who can assemble systems, supply components, install units, and maintain them across multiple sites such as schools, offices and semi-indoor public spaces.
The discussion also reminded us that sustainability is equally about food and health. The food industry is described as growing at 10%, with a market size of 800 billion, and 98% of the industry belonging to MSMEs. With lakhs of small food processing enterprises—many unorganised and unregistered—the need for technical, financial and market support is real. This is an area where MSMEs can grow rapidly, but only if they upgrade quality, shelf life, safety, and nutrition.
Two examples stood out. One was fortifying rice kernels using protein, fibre and micronutrients—linked to concerns like anaemia and rising diabetes—so nutrition improves without changing everyday eating habits. Another was the concept of “designer hollow salt”, which improves the perception of saltiness while reducing sodium, with up to 86% reduction noted. These ideas show how innovation can meet people where they are: in everyday kitchens, daily meals and familiar staples. For MSMEs, such ready research can open up new product lines, better branding, and stronger acceptance in health-conscious markets.
In environmental solutions, CSIR’s footprint across 37 cities is significant because it signals reach and capability. The examples mentioned include municipal solid waste treatment and “waste to wealth” biodegradable products made from agro residues. There are also solutions for biomedical waste, sewage and faecal sludge treatment, and modular onsite wastewater treatment technologies that can recover clean water, bioenergy and manure. This is where sustainability becomes local and immediate—cleaner neighbourhoods and healthier workplaces, with practical models that can be replicated.
And finally, packaging—because packaging is where sustainability becomes visible to every consumer. Packaging is described as the fifth-largest sector in the Indian economy, and the scale of plastic waste is striking: an estimated 15,000 multilayered packs are purchased and dumped every minute. This is not just an environmental problem; it is also a business problem, because regulations, consumer preference and global buyers are shifting towards safer and greener packaging.
CSIR’s work here includes alternatives to PET bottles and single-use plastics, including 100% bio-compostable bottles (including the lid) that can compost in about six months. There is also mention of improved coatings for paper cups to reduce sticking and enable reuse. Packaging security—such as QR codes and inks to prevent tampering—was highlighted too, which is increasingly important in fast-moving markets. For MSMEs, packaging innovation can be a clear competitive advantage: it builds brand trust, supports compliance, and helps products stand out in both domestic and global markets.
When I step back and connect all these threads, one message becomes clear: the future will reward industries that can grow without growing waste. MSMEs are the real delivery vehicles of that future. With access to science and technology—whether in clean fuels, hydrogen ecosystems, waste-to-energy, cleaner air, food innovation, wastewater treatment, or sustainable packaging—MSMEs can move faster, take smarter risks, and build products that the world increasingly wants.
The future of the Indian economy will be spearheaded by MSMEs. With strong marketing and Govt support through initiatives like Make in India, and the larger idea of Viksit Bharat@ 2047—with a focus on innovation, sustainability and entrepreneurship—the Indian MSMEs can propel India to become the “World’s Workshop”.
About Author:
Pallavi Salgaocar is a Chartered Accountant and Finance Director of Geno Pharmaceuticals Pvt Ltd. A first-generation entrepreneur, she founded Goa’s bakery chain Desserts N More, operating through self-run outlets, franchisees, express counters, and supermarkets, and is also the author of the cookbook Desserts First.
She serves as the Goa State President of Laghu Udyog Bharati (a national MSME industry association) and is on the Managing Committee of GCCI (Goa Chamber of Commerce & Industry). An IICA-certified independent director, she is also a Goldman Sachs 10,000 Women alumna, has completed Stanford’s Innovation & Entrepreneurship Professional Certificate, and writes regularly as a columnist, with multiple recognitions as a woman entrepreneur and community leader.
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