Strengthening the Role of MSMEs in Generating Sustainable Employment for Skilled Youth in India

Prayas Juvenile Aid Centre Society, in collaboration with India Habitat Centre, organised a multi-stakeholder discussion on “Strengthening the Role of MSMEs in Generating Sustainable Employment for Skilled Youth in India” at India Habitat Centre, New Delhi. The discussion brought together representatives from government, industry, financial institutions, and civil society to explore how MSMEs can better support jobs and livelihoods for youth.

Setting the Context

Setting the context, Mr. Amod K. Kanth, Founder & Mentor, Prayas, shared that MSMEs play an important role in generating employment across both rural and urban areas. He highlighted the need to better connect skilling with industry so that training leads to real job opportunities, and also pointed to the role of civil society in supporting youth into employment and entrepreneurship.

Government Perspectives

Mr. R.K. Rai, Additional Development Commissioner, Ministry of MSME, spoke about simplified registration through platforms like Udyam, which helps businesses access schemes, finance, and market opportunities. He also noted that awareness at the grassroots level still needs improvement.

Industry Insights

Ms. Jaya Awasthi, Head & Principal – COE on Skills & Livelihood, CII, highlighted the need for better support systems for MSMEs, including mentorship, clearer communication, and stronger connections with industry to attract and retain young talent.

Connecting skilling with industry is not optional — it is the foundation of meaningful employment for youth.

Key Challenges & Way Forward

The discussion also touched on challenges like access to finance, skill gaps, and low awareness of schemes, along with the need to support entrepreneurship and improve coordination across stakeholders.

Conclusion

Overall, the session highlighted the importance of practical steps, better awareness, and continued collaboration to improve employment opportunities for youth. Participants agreed on moving forward with stronger linkages between skilling programmes, MSME ecosystems, and financial institutions to create sustainable livelihood pathways for skilled youth across India.