A functioning private sector is crucial for promoting sustainable economic growth and poverty mitigation in India. As growth proceeds, private companies become the main source of employment and livelihood support for the majority of workers and their dependents and have the potential to contribute to socially and regionally inclusive development. However, pervasive poverty, social inequality and increasing environmental degradation suggest that uncontrolled economic growth alone will not lead to sustainable development.

In order to achieve responsible competitiveness conducive to inclusive growth, stable political framework conditions, a positive investment climate, functioning markets and institutions and an intensive public-private dialogue are of essence. The concept of private-sector promotion is therefore based on a systematic competitiveness approach, which is implemented at the micro, meso and macro level.

Vision – Making India an economically vibrant region with a high standard of living for all individuals.

Mission – To promote India’s economic growth and mitigate poverty by generating employment opportunities, boosting innovation, driving competitiveness and facilitating entrepreneurship, through collaboration between public and private sector.

The Private Sector Development programme currently runs four bilateral projects and two global projects:

Bilateral Projects:

  • Indo-German Programme for Vocational Education and Training (IGVET),
  • Programme for Modernization and Innovation in MSMEs in India (MSME INNO),
  • Economic Empowerment of Women Entrepreneurs and Start-Ups by Women (WEE),
  • Programme for Responsible Enterprise Finance (REF).

Global Projects:

  • Global Project for Quality Infrastructure (GPQI-India),
  • Alliance for Integrity (Afln).

GERMAN INTERNATIONAL COOPERATION

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is a global service provider in the field of international cooperation for sustainable development and international education work. GIZ has over 50 years of experience in a wide variety of areas, including economic development and employment, energy and the environment, and peace and security. As a public-benefit federal enterprise , GIZ supports the German Government – in particular the Federal Ministry for Economic Cooperation and Development (BMZ) – and many public and private sector clients in around 120 countries in achieving their objectives in international cooperation. With this aim, GIZ works together with its partners to develop effective solutions that offer people better prospects and sustainably improve their living conditions.

PROGRAMME FOR MODERNISATION AND INNOVATION PROMOTION IN MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES IN INDIA (MSME INNO)

Our Work

Skills-Development

Skills Development

Innovation-in-MSMEs

Innovation in MSMEs

Empowering-Women-Entrepreneurs-

Empowering Women Entrepreneurs

Standards-and-Product-Safety

Standards and Product Safety

Strengthen the innovation ecosystem for the MSMEs to make them more competitive and sustainable by promoting modernisation and adopting green innovations.

The Micro, Small and Medium-sized Enterprises (MSMEs) sector in India contributes significantly to employment, industrial output, and exports. And bringing in innovation is a key to drive their growth. It is central for sustainability, growth & competitiveness in the context of ever-changing market dynamics. Currently the sector faces several challenges such as lack of innovation-enabling support in key areas of technology transfer, innovation management etc., there is a disconnect amongst the actors (industry and specifically, small enterprises, research institutions, buyers, technology suppliers etc.) and there is a pressure to implement more environmentally sustainable production processes.

In order to address the existing challenges, MSME INNO promotes the active involvement of the Government, academia and business member organizations to improve the innovation capacity and sustainability of MSMEs and strengthen its long-term competitiveness.

The Result: The MSMEs would have access to modern techniques, and environmentally friendly inclusive innovations that will help to create new economic opportunities for the MSME sector. This would help them lead in the market place to stand as a large employer or producer of the country and contribute to the GDP or exports.

ECONOMIC EMPOWERMENT OF WOMEN ENTREPRENEURS AND START-UPS BY WOMEN

The Economic Empowerment of Women Entrepreneurs and Start-Ups by Women project aims to improve the overall framework conditions for women-led businesses in India and encourage women to become entrepreneurs and existing women-led enterprises to grow. Under the name Her&Now, the project pilots an incubation and acceleration programme, that equips India women to start new businesses and grow their existing businesses in Northeast region, Rajasthan and Telangana with three local partners:

Dhriiti

Dhriiti (Northeast region):

Set up in 2004, Dhriiti works with women, youth and communities in economic crisis and partners with Government, corporate bodies, multilateral agencies and civil society organizations to build a favourable ecosystem for entrepreneurship across India.
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Startup Oasis (Rajasthan)

Set up in 2013, a joint initiative of the Centre for Innovation, Incubation and Entrepreneurship (CIIE) at the Indian Institute of Management, Ahmedabad and Rajasthan State Industrial Development and Investment Corporation (RIICO), Rajsthan’s premiere industrial promotion organisation. As an incubator, Startup Oasis catalyses India’s regional startup ecosystems to foster innovation and entrepreneurship for socio-economic development.
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WE Hub (Telangana)

An incubator set up in 2018 by the Government of Telangana to promote women entrepreneurship by way of ecosystem building, government support, and incubation.

Her&Now Film Campaign

The project is commissioning the production of four original high-quality, cinematic short films on the topic of women entrepreneurship: two fiction short films, one non-fiction short film and one animated short film. Reputed and well-established Indian filmmakers are encouraged to submit their film ideas until 14th of October 2019 to get the chance of receiving a production grant worth up to 20 lacs to tell an authentic story about the journey of a woman entrepreneur.

Incubation Programme

A seven-month program for women from tier II and III cities, who want to set up their enterprise. The program will offer critical business-skill modules, self-improvement learnings, and mentoring.

Who Can Apply

  • Any woman entrepreneur who wants to set up a for-profit enterprise in the relevant region
  • Any woman entrepreneur who has been running an informal enterprise/is part of a group enterprise and now wants to start up on her own
  • In case of a jointly-run enterprise, the woman founder will have equal participation in day-to-day running of the enterprise
  • Willingness to register their enterprise as part of the programme
  • nformal operations / pilot operations

Acceleration Programme

A six-month program to help women-led enterprises from tier II and III cities scale up, with critical learning on building teams, fundraising, leadership, and other customised sessions.

Who can apply

  • Any for-profit woman-led enterprise (registered legal entity) that has been in existence for at least one year in the region
  • In case of a jointly-run enterprise, the woman founder will have majority stake and at least equal participation in day-to-day operations

RESPONSIBLE ENTERPRISE FINANCING – PHASE I

Strengthen the innovation ecosystem for the MSMEs to make them more competitive and sustainable by promoting modernisation and adopting green innovations.

Access to finance often is the bottleneck for the growth of MSMEs. Therefore, banks and other financial institutions play an important role as providers of financial services. They can also nurture the right kind of growth (clean and resource efficient) by providing the right incentives for MSME to integrate environmental, social and governance concerns (i.e. ESG factors) into their business. Additionally, they can provide capital to develop socially responsible products, processes and business models. However, a major challenge remains in terms of capacity building and development of products and instruments, to transform the sector to better serve MSMEs needs.

The project Responsible Enterprise Finance focused on the financial sector act as a lever aimed to set MSMEs on more resource efficient growth path, thus becoming drivers of innovation in priority sectors of government. For this banks, venture capital funds and service providers such as incubators were key intermediaries. The project was completed in 2016 resulting in a significant impact.

The Result: Numerous representatives of the banking sector and the Indian Banks’ Association have established thematic working groups where they draw up voluntary guidelines for greater sustainability in the banking sector and approve action plans. In the area of risk capital for social enterprises, the programme has helped to set up a virtual incubation platform (www.startupwave.co) for social enterprises and start-ups. To date, more than 350 enterprises have used the platform. The programme has also helped set up the impact fund performance measuring and reporting tool PRISM, which allows fund to assess the impact of their fund as well as portfolio companies (www.prismforimpact.com). The tool has been tested and used by 9 funds.

APPROACH

Responsible Banking:

Strengthen the capacities of banks to integrate ESG concerns, and to offer corresponding products by development of broad level policy guidelines for banks defining the business areas to be covered, manner of integration in existing processes and systems and allocation of responsibilities in the banks.

Responsible Investment

Support mainstream investors to integrate ESG concerns. Financial institutions would minimise environmental footprint in internal operations by investing in environmentally friendly products and support inclusive and equitable human and social development.

Impact Investment

Strengthen impact investors and incubators that provide finance and services to social impact businesses. This would enable easy access to risk capital for start-ups and social enterprises that offer innovative solutions for lower income populations.

KEY ACHIEVEMENTS AND INITIATIVES SO FAR...

  • Developed a framework and toolkit for ESG risk assessment for the lending process in banks.
  • 120+ MSMEs gained access to responsible finance schemes.
  • The proportion of investments in the fields of energy efficiency and women entrepreneurs increased by 106 % and 1180 %, respectively.
  • 23 banks and other financial institutions covering 65 % of the MSME market have developed and adopted National Voluntary Guidelines for responsible banking.

Contact Us

Address

B 5/1, Safdarjung Enclave, New Delhi – 110029, India

Phone

+91 11 49 49 53 53,
+91 11 49 49 53 91

Email

privatesector.india@giz.de,

Website

www.giz.de

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