ASSOCHAM National Dialogue Series India Affirmative Action: Future of SC/ ST Entrepreneurs: Mitigating Risks & Challenges and Strategies Way Forward

India's socioeconomic growth potential has influence of the country's distinctive caste-based system and pose obstacles to inclusiveness. Leveraging economic and competitive benefits of demographic dividend in India is not fully attainable if an anti-competitive exclusion to any segment of society from the market economy is not eliminated. This has reference to representation of SC and ST owners in the MSME sector during 2018-19 which was merely at 12.45 percent and 4.10 percent, respectively.

Inclusion and competitiveness are inextricably linked with economic progress and development. During the Pre-Covid- 19 phase, SC and ST entrepreneurs were striving to obtain access and participate in the growth of country by contributing with their higher active role especially in the non-traditional-service sector and by setting up start-ups with the support of institutional sources of credit and various schemes of Government of India. The Covid-19 has impacted such entrepreneurial spirit of ST and ST promoters distinctively, as several such business dreamers lost their hopes mid-way or before their enterprises could have taken-off to operations. The capital investments made on knowledge enhancements and for procurement of resources has been unproductively foregone in several cases and perceived outcome of inclusiveness has been adversely hit by the pandemic.

ASSOCHAM during several interfaces with government has already initiated the advocacy for 4% reservation for procurement from SC/ST entrepreneurs in Public Procurement Policy. Further, towards exploring fresh opportunities and overcoming challenges, there is an urgent need for concerted efforts to ensure that SC/ST entrepreneurs get their due share of concessions and revival incentives alongside project funding and MSME sector benefits available under various schemes. This will be enabling and empowering marginalised and deprived segment of society which pertains to definition of affirmative action to uplift not only their socio-economic status but also their much-needed key role and participation in the businesses will increase in country's overall growth prospects.

In view of above, ASSOCHAM is organising a national dialogue series on "India Affirmative Action: Future of SC/ ST Entrepreneurs- Mitigating Risks & Challenges and Strategies Way Forward" on Friday, 25th February 2022.