Making Small, and Medium Enterprises Globally Competitive

Paper Details 

Paper Code: RP-VBCL-34-2025

Category: Research Paper

Date of Publication: April 20, 2025

Citation: Ms. Anusha C Koti, “Making Small, and Medium Enterprises Globally Competitive", 2, AIJVBCL, 489, 489-508 (2025).

Author Details: Ms. Anusha C Koti, Assistant Professor of Law, KLE Law College - Bengaluru

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ABSTRACT

Small and Medium enterprises (“SMEs”) are vital contributors to the industrial growth and development of the Indian economy. The importance of this sector has increased as it is sharply emerging as a manufacturing hub for the world. Global pressures for green and sustainable initiatives in the supply chain from national and international organizations create an urgency for SMEs to switch to Green Supply Chain Management (“GSCM”) from conventional manufacturing. GSCM minimizes waste and pollution, leading to financial gains and a better image if implemented correctly. Although the research in this area of GSCM implementation in SMEs has grown in recent times the literature has yet to furnish an accepted explanation for why green practices are to be manifested in supply chain management of SMEs and what are the internal and external pressures faced during such transition to GSCM. This paper shall address those questions and analyze the drawbacks of the initiatives taken by the government of India to support the transition to GSCM. The paper enhances the knowledge of the reader by explaining how this inclusion of GSCM in SMEs can contribute to achieving SDGs. Finally, the paper shall conclude by suggesting a way forward to be taken by the government to help the SMEs in complete transition to GSCM practices.

Keywords: Green Supply Chain Management, Small and Medium Enterprises, Government Initiatives, Sustainable Development Goals.

INTRODUCTION

The Micro, Small, and Medium Enterprises (“MSME”) emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. In India, Small and Medium Enterprises (“SMEs”) are classified as a part of MSMEs. The paper refers only to manufacturing and production SMEs and its definition shall remain as provided in The Micro, Small and Medium Enterprises Development Act, 2006.SMEs are major drivers of economic development by fostering entrepreneurship and generating large employment opportunities at comparatively lower capital costs next to agriculture[1]. They act as ancillary units to large industries and contribute significantly to the industrial development in India. The SMEs are expanding their reach to various sectors of the economy, producing a diverse range of products and services to meet the demands of domestic and global markets. They remained robust at 11.2% from 2001 to 2019[2] and contributed significantly to economic growth by participating in exports of the country. While their contribution to the economy of the country is huge the share in the total exports remains low, due to challenging global demand and strong competition.

One such global demand has been witnessed ever since 1992 when the sustainability word was first coined at the Earth Summit in Rio. Over the last two decades, the sustainability concept has gained relevance across the world’s business enterprises. Many enterprises are adopting environmental initiatives as an integral part of their business, and integrating various green innovations into their overall company strategy[3]. These organizations have realized that if sustainability needs to be achieved, green initiatives must be encompassed in the entire stretch of the operations of a company and include suppliers, customers, and all other business partners in the greening process[4]. Since then, several initiatives have been taken, like Environmental management systems, cleaner production, Responsible Manufacturing, and Green Supply Chain Management (“GSCM”). The latter approach seems more comprehensive than all the former initiatives as it encompasses the entire operations of the company and involves all the stakeholders. This approach goes beyond the factory walls to extend the sustainability benefits to the communities surrounding them[5]. Therefore, many enterprises in the global market are taking steps towards transitioning their supply chain to green supply chain management.

All these environmental initiatives have created competition in the global market because the priorities of the customers are now more leaning towards environmentally sustainable production processes. Due to this, multinational companies prefer to have a business relationship with industries that function environmentally friendly in the market system. Further, GSCM practices in India have generally been more popular with large companies. However, SMEs who are the backbone of the manufacturing industry in India contributing 45%[6] of Indian exports will face significant challenges in transitioning to green supply chain management because of lack of awareness and lack of financial capacity to undertake such transition.

Further, taking green initiatives in the supply chain of SMEs is crucial as they form the ancillary units of the industry in India and often carry on manufacturing without adhering to cleaner production approaches. The result of thisis the production of solid effluents, liquid waste, and hazardous emissions causing pollution in the environment. Also, the SMEs due to the lack of supporting facilities tend to follow the short routes in waste management of the effluents and disposeof them to the environment without neutralizing.

With the review of the literature explaining the implementation of GSCM amongst SMEs in different parts of the world, the understanding drawn is the driving forces, obstacles and barriers faced are not uniform everywhere, and the extent of the implementation would be specific to the region or the industry of SMEs. But none of the books or articles delved deeply into the need and challenges faced in the implementation of GSCM in Indian SMEs, and connecting this implementation to the achievement of the Sustainable Development Goals (“SDGs”) which is addressed in the current paper.

The purpose of this paper is to investigate the implementation of GSCM in Indian SMEs and to identify the challenges faced by them. Additionally, it aims to analyse the initiatives taken by the government to facilitate the transition to GSCM and examine how this transition can contribute to achieving SDGs in the country. The paper will follow an exploratory research methodology and use secondary sources such as books, academic journals, government reports, and authentic websites. The paper is structured in three parts: firstly, the definition of GSCM and the need for its implementation in SMEs; further analysisof the challenges in its implementation; secondly, the government initiatives in transition to GSCM; and thirdly exploring the SDGs that can be achieved by this transition; and lastly, suggestions to be inculcated within the government policies to facilitate such transition.

GREEN SUPPLY CHAIN MANAGEMENT IN SMES.

GSCM is an environmentally friendly approach and a great business value driver as it contributes to the higher profits of the businesses[7]. The scope of GSCM ranges from reactive monitoring of the general environment management programs to proactive practices implemented through various R’s which stands for Reduce, Re-use, Rework, Recycle, Reclaim, Reverse logistics, etc.[8], GSCM is a “process of using environmentally friendly inputs and transforming these inputs into outputs that can be reclaimed and re-used at the end of their life cycle thus, creating a sustainable supply chain.”[9] The definition highlights the major activities such as green operations, green design, green manufacturing, reverse logistics[10], and waste management. GSCM consists of three phases which are the inbound logistics phase, outbound logistics phase, and reverse logistics phase[11]. Inbound logistics means green sourcing or green purchasing; outbound logistics includes green packaging, labelling, or green delivery; and reverse logistics includes recycling the end products. GSCM is “integrating environmental thinking into supply chain management, including product design, material sourcing, and selection, manufacturing processes, delivery of the final product to the consumers as well as end-of-life management of the product after its useful life.”[12] The way GSCM is defined is different in all these definitions but its roots lie in both environment management and supply chain management. Thus, merely adding the ‘green’ component to all the operations of the supply chain management from procurement of raw materials to the re-use of end products will  address GSCM.

The GSCM on one side would help the enterprises contribute towards sustainability for their operations. On the other hand, it would directly imply that greening should be done from the base level of the industry i.e., right from the SMEs. But before considering the transition to GSCM at the SME level, it is important to answer Apart from Competing in The Global Market Is There Any Need to Implement GSCM in the SME in India? The SMEs contributing 70% of all industrial pollution and causing harm to the environment in various formsclearly show the requirement of transition to GSCM[13].

The SMEs are notable Green House Gas (“GHG”) emitters due to the high use of fuels and other resources that are non-biodegradable and difficult to regulate. MSMEs consume about 25% of the total energy consumed by the industrial sector in India and out of this energy consumed 15% is electricity and 85% is thermal energy consumption[14]. And estimated energy consumption of the sector by 2030 is expected to be equivalent to above 72 million metric tonnes of CO2. These emissions are further leading to aggravating the effects of climate change which is a major global concern today.

Apart from carbon emissions, the SMEs are the greatest waste generator in the current era. Improper disposal of industrial waste from SMEs especially textiles, Leather, and Metal industries which include chemicals, and packaging materials, can contaminate soil, water bodies, and the environment. On the other hand, the inadequate management of hazardous waste like paints, batteries, and medical equipment can pose significant risks to human health and are termed as hazardous waste.Further, the overexploitation of natural resources like wood, minerals, and agricultural products can harm ecosystems and deplete resources for future generations.

The above data clearly show that some of the SMEs in this 21st century are still using outdated technologies and processes, resulting in higher energy intensity, higher waste generation, and depletion of natural resources[15].Waste and transport are the main areas where the SMEs impact the environment and to control this their initiatives must be focused on neutralizing hazardous waste before discharging, reducing waste generation, sustainable packaging, andrecycling, lastly, they should also aim to reduce fuel and energy use, adopt environmentally friendly distribution[16]. Waste minimization should be half done during the production and operational processing, and the remaining part should be subsequently treated, stored, and reused in supply chain management[17]. All the practices mentioned above are part of the GSCM. Therefore, the investment ingreeningthe supply chain management can be resource-saving, waste-eliminating, and productivity-improving. But this transition is not smooth, especially for SMEs in India which are mostly unorganised and informal.

This unorganized and informal nature of SMEs which are heterogeneous groups with different organizational forms, ranging from proprietorship to corporate pushes them to face various challenges to transition to GSCM. Before knowing the challenges faced in the transition, the following figures shall display the traditional supply chain (figure 1) and the transitioned green supply chain (figure 2). The details of the figure explain the long chain of changes to be made in the traditional supply chain to get into the GSCM at every stage of the management. Figure 2 represents the traditional supply chain links as solid lines, and the links corresponding to the extended supply chain as dashed lines. The W’s enclosed by diamonds represent waste (or disposed) materials.

FIGURE 1: Traditional Supply Chain

Source: Beamon B, (1999)[18]

FIGURE 2: Green Supply Chain Management

Source: Beamon B, (1999)

The figure depicts that one of the basic challenges of SMEs ismoving away from the age-old traditional supply chain practice they follow. SMEs exhibit a lower level of awareness and implementation of initiatives to enhance environmental performance and efficiency[19].SMEs being the smaller businesses due to a lack of expertise in the environmental initiatives taking place around them fail to be aware of the changing trends in both domestic and global markets. It has been observed that SMEs show less dedication toward ongoing benchmarking activity due to a lack of resources, a lack of proper understanding regarding the usefulness of benchmarking activity, high costs and time involved in doing those processes[20]. The GSCM being a recent development has a lot of technicalities and understandings to be done before the implementation, technological proportionality should be maintained throughout the supply chainfromprocurement of environmentally friendly raw materials for production by maintaining adequate quantity and quality requirements to the recycling of the end-product post-consumer usage in the environmentally friendly manner. Further, the process also requires technological skills to be developed by the human resources working in the SMEs to look at the proper functioning of the supply chain. However, due to the non-availability of the training, the workers will resist new techniques and sometimes due to the lower bargaining power the SMEs have limited control over the supplier's sustainable practices making it difficult to ensure the green standards.

Another challenge that SMEs can face is the logistics of the supply chain. The main aim of the logistics in the GSCM is to minimize transportation emissions and fuel consumption but the implementation of this strategy and relying on green transportation for moving goods might be challenging for the smaller feet. Further, 95% of the total logistics costs go into the recycling[21]. The practice of Reverse logistics specifically requires the setting up of efficient systems for collecting and processing post-consumer waste, tracking, and monitoring the flow of goods within the supply chain, and creating proper infrastructural space for the same is a difficult task for SMEs.

Another significant challenge faced by SMEs in India is the financial constraint, which is the greatest asset of every innovation and advancement. Despite the significant contributions to the economy the SMEs face certain constraints like availability of adequate and timely credit, high cost of credit, and collateral requirement, etc.[22]., High upfront costs in implementing GSCM often require investments in new technologies, training, infrastructure, and logistics, which can strain tight budgets. SMEs might have difficulty in accessing and securing loans or grants specifically for green initiatives due to perceived risks or lack of awareness. Additionally, only 16% of SMEs are financed through formal banking systems, and the credit gap for SMEs in India is estimated to be about USD 240 billion (about INR 16.66 trillion) in 2020[23]. An already existing finance gap lends itself to hindering the sector’s transition to GSCM.

Therefore, the absence of an adequate and timely supply of bank finance, limited knowledge, low-quality inputs, and non-availability of technology are the main problems faced by SMEs in India[24]. Thus, the reasons for the reluctance to establish a green supply chain approach can broadly be classified into three folds: lack of appropriate information on regulation and methods, which shall remain the main disincentive, followed by the complexity of implementing such a strategy, and the lack of return on investments being made in the sector of GSCM due to unawareness[25].

The challenges mentioned are hindering the growth and expansion of SMEs towards the adoption of GSCM practices. Due to all these reasons the Indian SMEs exhibit relatively slow progress in the global market demands because customers today are more aware of environmental issues and will question every product theypurchase and want to buy the environmentally harmless products over the fancy products thatcause damage to the environment. Examples of such choices are, Jute carry bags, Biodegradable Paper, Bamboo and wheat straws, Areca Plam leaf plates, and recycling initiatives in the clothing sectors like H&M (where the consumers are given certain discounts on providing old used clothes), etc., Apart from the customer demands at national level, India is becoming an important provider of the products for markets in different countries and a good participator in the global value chain of the textile and food processing industry. India is playing both as a supplier of products and as a business partner to many global organizations. Therefore, to be acceptable to and welcome in these global markets and to be competitive simultaneously these SMEs need to demonstrate their efforts in green initiatives in the supply chain management.

A study indicated that organizations adopting GSCM in the Southeast Asian Region ultimately have enhanced both competitiveness and economic performance[26]. An empirical study in the SMEs of Chennai, concludes that green sourcing and green production can result in high economic performance, as the customers are fine with green initiatives taken by the SMEs[27]. Recently, Arbhu Enterprises, manufacturers of areca plates had a successful story of making areca plates from the fallen leaves of the Areca palm tree, which are eco-friendly alternatives to plastic plates and have gained worldwide popularity as they shipped 20 million areca plates to businesses in the US and UK since inception. The company shipped 5 million plates in FY23. And their revenue stood at Rs. 7.5 crore in FY23, which was Rs. 35 Lakh in 2019-20[28]. These examples show that green initiatives in SMEs will surely increase global competition and economic growth. However, thepotential of SMEs for transition to GSCM can be enhanced by government initiatives.

ANALYZING THE GOVERNMENT INITIATIVES FOR GSCM

The SMEs of the country possess the resources, capabilities, power, and access required to reverse the global environmental problems. Being a major part of the industry in India they must publicly accept their responsibility towards environmental degradation and society and perform a leading role in addressing the environmental crises. Considering this aspect, the Indian government by recognizing the potential impact caused by SMEs on the environment has taken up several initiatives and support to GSCM. Some of them are:

National Clean Technology Innovation Programme (NCTIP) 2015, being part of the Global Cleantech Innovation Programme led to the creation of a platform to promote clean technology innovations and competitiveness of SMEs and business models. The goal of this platform was to conduct annual cleantech business competitions and establish an accelerator across selected SME clusters covering four clean energy sectors: energy efficiency, renewable energy, waste-to-energy, and water efficiency. Each startup involved received training, mentoring, and promotion, and was put in contact with potential investors, customers, and partners through participation in the program. The project conducted four annual innovations and received 700 applications, out of which only 84 SMEs qualified and benefitted from the program’s support[29]. In continuation of this, a scheme for Financing and Facilitation of Micro and Small Industries (SFMSI) offers grants and subsidies for adopting clean technologies and green practices in supply chains.

Micro & Small Enterprises Cluster Development Programme (MSE-CDP) Scheme 2019[30], to support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills, quality, market access, etc., to create infrastructural facilities, and set up common facility centers. The infrastructural facilities shall mainly include the development of land, roads, drainage, power distribution, etc.

Procurement and Marketing Support (PMS) Scheme, 2019[31], the scheme is eligible for the MSEs which are registered at the Udyog Aadhaar Memorandum (UAM) Portal and aims to promote new market access initiatives like organizing / participation in National / International Trade Fairs / Exhibitions / MSME Export, etc. held across the country and to create awareness and educate the MSMEs about the importance/ methods/ process of marketing, latest packaging technology, import-export policy and procedure, etc.,

MSME Champions Scheme, 2020[32], is a Holistic Approach to unify, synergize, and converge various schemes and interventions with a single purpose. It has 6 components of the erstwhile Technology Upgradation Scheme for 5 years i.e. 2021-26. The end objective of this scheme is to pick up clusters and enterprises and modernize their processes, reduce wastage, sharpen business competitiveness, and facilitate their national and global reach. The 6 components are waste reduction, support for Design improvement, building awareness of Intellectual property rights, Zero Defect Zero Effect Scheme, digital empowerment of MSME, and promoting the adoption of the latest technologies in manufacturing MSMEs.

A.    MSME Sustainable ZED certification scheme[33], encourages promotion of Zero Defect Zero Effect practices amongst MSMEs. All MSMEs registered with the UDYAM registration portal will be eligible to participate in MSME ZED certification and avail benefits. This includes manufacturing quality products using the latest technology and tools, enhancing competitiveness, and enabling exports. Through the journey of ZED certification, MSMEs can reduce wastages sustainably, increase productivity, enhance environmental consciousness, save energy, and optimize the usage of natural resources. The ZED certification aims to enhance the competitiveness of an MSME by assessment, modification through guidance, and managerial and technological intervention. The key benefits of the scheme are subsidy on the cost of ZED certification, financial assistance in the Testing/Quality/Product certification process, and technological upgradation of up to Rs. 3 lakhs for all ZED-certified MSMEs.

Panchamrit Scheme under India’s Climate Action Plan, 2021[34], helps India in low emissions growth pathways. It consists of five nectar elements called Panchamrit. They are Reaching 500 GW of Non-fossil energy capacity by 2030, 50% of its energy requirements from renewable energy by 2030, Reduction of total projected carbon emissions by one billion tonnes from now to 2030, Reduction of the carbon intensity of the economy by 45% by 2030, over 2005 levels, and achieving the target of net zero emissions by 2070. The announcement to intensify India’s climate action has the potential to bring investment and new technologies to support the country’s transition to a clean and climate-resilient economy.

Extended Producer's Responsibility on Plastic Packaging, 2016[35], is the guidelines provided under the Plastic Management Rules, 2016. The Guidelines provide a framework to strengthen the economy of packaging promote the development of new alternatives to plastics, and provide further steps for moving towards sustainablepackaging by businesses. The reuse of rigid plastic packaging material has been mandated in the guidelines to reduce the use of fresh plastic material for packaging.

Waste Management Technologies Program, 2016[36], aligned with the “Swachh Bharat Mission” of the Government. One of the objectives is to develop waste management technologies that can be adopted in SMEs to improve their productivity and global competitiveness.

Ethanol Blending Program, 2003[37], for blending ethanol in petrol which is a blended motor fuel containing ethyl alcohol that is at least 99% pure, derived from agricultural products, and blended exclusively with gasoline. The objective of the program is to reduce import dependence, providing a boost to the domestic agricultural sector and associated environmental benefits.

Apart from the ZED certification scheme, all the other schemes are working as periphery in transitioning the supply chain management to GSCM. Because they are merely supporting the SMEs by providing financial assistance to green initiatives, improving technological skill development through various training programs, marketing support, etc., but not particularly creating awareness about GSCM practices. All the schemes being eligible to the registered SMEs under the UAM portal is the greatest drawback[38] to the unregistered SMEs. The ZED certification scheme named a sustainable scheme includes major parts of the assistance for transition to GSCM but falls short of including the initial funding to be done to SMEs to start such a transition, and technological assistance to be given especially at the Reverse logistics stage. Further, the rules related to plastic packaging, waste management, and ethanol blending are essential in the GSCM but do not exclusively discuss the funding for the GSCM transition. To conclude, no rules, guidelines, or schemes exclusively assist SMEs in the transition to GSCM, which is vital for global competition and achieving the SDGs.

ACHIEVING SPECIFIC SDGS

The GSCM combines two important developmental strategies, specifically productivity improvement and environmental protection. Productivity provides the framework for continuous improvement while environmental protection provides the foundation for SDGs. The transition to GSCM potentially contributes to the achievement of several SDGs. Some of them are:

SDG 1: No Poverty

Poverty can refer to the condition of the individual, group, or collective situation of the community. The first step in the GSCM is the procurement of sustainable raw materials, sourcing the raw materials locally, and building partnerships with small-scale producers who produce organic materialsthat can empower local communities, enhance value creation, and contribute to their economic growth. The study in Indonesia found that GSCM practices will reduce poverty and empower people[39].

SDG 3: Good Health and Well-Being

GSCM reduces exposure to pollutants and minimizes the use and release of hazardous substances throughout the supply chain. This reduces air and water pollution, exposure to harmful chemicals, and the risk of associated diseases like cancer, respiratory illnesses, and waterborne diseases. This positively helps in achieving SDG target 3.9 by significantly reducing the number of deaths and illnesses from hazardous substances and pollutants.

SDG 6: Clean and water sanitation

GSCM implementing sustainable waste management and responsible disposal of industrial waste by incorporating reverse logistics can contribute to improvement in water quality by reducing pollution, eliminating dumping, and minimizing the release of hazardous chemicals into water bodies, and achieving SDG target 6.3

SDG 7: Affordable and Clean Energy

GSCM integrating renewable energy sources like solar or wind power within supply chains can lead to decreased reliance on fossil fuels and reduced greenhouse gas emissions. And by adopting energy-efficient technologies can minimize energy consumption.

SDG 8: Decent work and economic growth

Incorporating GSCM in SMEs can increase green jobs in areas like waste management, recycling, and sustainable agriculture, providing income and livelihood opportunities for previously marginalized communities and contributing to their economic growth. Further, the GSCM principles often involve promoting safe and healthy working environments for employees across the chain, aligning with decent work practices. Therefore, GSCM helps in achieving SDG targets 8.3, 8.5, and 8.6.

SDG 10: Reduced Inequality (10.2)

The GSCM in the SMEs will encourage collaboration with small-scale producers and local communities, enabling them to participate actively in the supply chain and capture a great share of the value generated. This empowers marginalized groups and reduces economic disparities. GSCM supports the development of local infrastructure and skills, benefiting local communities beyond immediate suppliers, creating broader socioeconomic development, and reducing regional inequalities. Including GSCM in SMEs makes them globally competitive, reducing inequality in choosing SMEs between countries.

SDG 11: Sustainable Cities and Communities (11.6)

The logistics stage in the GSCM promotes fuel-efficient vehicles, ethanol-blended fuel usage, and optimized delivery routes to minimize CO2emissions and air pollution within the city. Practices such as green warehousing, rooftop gardening, etc can improve the quality of air by absorbing the pollutants. Further, sustainable packaging and design directly minimize waste generation and facilitate recycling while improving municipal waste management. Thus, by fostering collaboration, innovation, and responsible practices within urban supply chains, GSCM can help build cleaner, healthier, and more resilient cities for the future.

SDG 12: Responsible consumption and production

The implementation of GSCM in SMEs highly contributes to the achievement of SDG 12, because the baseline of GSCM is working on the responsible usage and consumption of the materials and production as required. The concepts of Sustainable management and efficient use of natural resources (12.2) and substantial reduction in waste generation through prevention, reduction, recycling, and reuse (12.5) have a close affinity to GSCM at the Reverse logistics stage. Thus, GSCM has the potential to reduce the overall environmental footprint of products manufactured.

Apart from these, SDGs 9, 13, and 14 are also indirectly achieved by implementing the GSCM in SMEs by contributing to green innovational technology, reducing climate change, and reducing pollutants and waste entering water bodies. Therefore, the transition to SMEs will have a greater contribution to achieving the SDGs.

CONCLUSION/WAY FORWARD

In response to the international and environmental targets, irrespective of size or sector there is a need for any organization to have a concurrent improvement in operational and environmental efficiency. One such approach to achieving environmental efficiency is the implementation of GSCM at SMEs, which is about making more efficient use of all resources at every stage of supply chain management and contributing to environmental development. However, transitioning Indian SMEs to GSCM requires multi-pronged efforts from both government and private sector. By overcoming challenges, leveraging government initiatives, and actively pursuing GSCM practices, Indian SMEs can become globally competitive.

This paper identified the obstacles to implementing GSCM in SMEs. It highlighted the limitations of government initiatives aimed at supporting the transition. To fully leverage the benefits of GSCM in Indian SMEs, the government needs to adopt certain changes in the existing policies or make new schemes completely supporting such transition. The suggestions shall include, enhanced awareness and education campaigns about the GSCM benefits and best practices through workshops, and training programs are vital; training programs to address the skill gaps existing in SMEs; encouraging the collaboration between large industries, SMEs, and research institutions to foster knowledge sharing andpractices; simplify the regulatory frameworks and offer the financial assistance at the initial stage of the GSCM transition; establishing the monitoring and evaluation mechanisms to track the progress made by SMEs.  By actively pursuing these strategies, both the government and private sector can work together to create an enabling environment for SMEs to overcome the challenges.

Further, this transition holds immense contribution to a more sustainable and equitable future for India, aligning with the ambitious goals of the SDGs which are established in the paper. Through these efforts, we can pave the way for a greener and more prosperous future for Indian SMEs and the economic growth of the nation.

Future research in this area of GSCM is promoted not only for academics interested in exploring emerging areas in SCM but also for practitioners seeking to find a competitive advantage in the management of their supply chain operations in increasingly challenging and competitive global business markets. Truly measuring the attitudes of managers at global firms and improving the external and internal reliability to meet such an attitude is a multitasker for both developed and developing countries.

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* Assistant Professor of Law, KLE Law College - Bengaluru 

[1]Karthikey Bhardwaj and Manisha Srivastava, ‘A Review of Green Manufacturing in Select Indian SMEs’ (2021) 3 IRJETS 556, 557

[2]The latest data available was 2018-19, hence considered the same.

[3]Jason Joyce Bacallan, ‘Greening the Supply Chain’ (2000) 6 IJBE

[4]Aashima Sharma, Arun Rajan, Richard Jose, and Purba Rao, ‘Applying Structural Equation Modelling for Green Supply Chain in Retail Domain’ (2015) 3 IJBAI 20, 24

[5] Purba Rao, ‘Green Supply Chain Management: A study based on SMEs in India’ (2019) 8 JSCMS 15 

[6] MSME Desk, ‘MSMEs Contributed 45% to India exports as of September’ The Financial Express (India, 12 Dec 2023)https://www.financialexpress.com/business/sme/msmes-contributed-45-to-indias-exports-as-of-september-govt-data/3335902/

[7] Taylor Wilkerson, ‘Can One Green Deliver Another?’ (2005) HBP

[8] Samir Srivastava, ‘Green Supply‐chain Management: A State‐of‐the‐art Literature Review’ (2001) 9 IJMR 53, 54

[9] Anil Dube and R Gawande, ‘Green Supply Chain Management – A literature review’ (2011) IJCA 1

[10] Reverse Logistics is a process where a manufacturer accepts previously shipped products from the point of consumption for possible recycling and re-manufacturing (Dowlatshahi 2000). This helps in remanufacturing and recycling which reduces the costs of making new products (Beamon 335).

[11]cf Rao (n 5) 15-24

[12]R P Mohanty and Anand Prakash, ‘Green supply chain management practices in India: an empirical study’ (2013) Taylor & Francis. 

[13]Shashank Thanki and Jitesh Thakkar, ‘An investigation on lean–green performance of Indian manufacturing SMEs’ (2020) 69 IJPPM 489, 490

[14]‘Financing Low Carbon Transition in India’s MSME Sector: A National Survey in India’, The Energy and Research Institute, 2022.

[15]‘Third Biennial Update Report to the United Nations Framework Convention on Climate Change,’ Ministry of Environment, Forest and Climate Change, Government of India (2021)

[16] Sue Cassells and Kate Lewis, ‘SMEs and environmental responsibility: Do actions reflect attitudes?’ (2011) 18 CSREM 186,189

[17] Gurudas Nulkar, ‘SMEs and environmental performance- A framework for green business strategies’ (2014) 133 ICTMS 130

[18] Benita M. Beamon, ‘Designing the Green Supply Chain’ (1999) 12 LIM 332

[19]Joseph Sarkis and Jereon Dijikshoorn, ‘Relationships between solid waste management performance and environmental practice adoption in Welsh small and medium-sized enterprises (SMEs)’ (2007) 45 IJPR 4989

[20]Inayatullah, Rakesh Narain, and Amar Singh, ‘Supply Chain Management Practices in SMEs of India: Some Managerial Lessons from Large Enterprises’ (2015) 02 IRJET 1176, 1190

[21]cfSrivastava (n 1) 53-80

[22]Abhijeet Biswas, ‘Opportunities and Constraints for Indian MSMEs’ (2015) 2 IJR 273, 274

[23]‘Annual Report 2022-23’, Ministry of Micro, Small and Medium Enterprises, Government of India, 2023.

[24] S Tarakeswara Rao, G Tulasi Rao, and M O Suri Ganesh, ‘Management of Micro-Enterprises: A Study on Performance of Micro-Enterprises in Srikakulam District, Andhra Pradesh’ (2012) 5 IJM

[25]Valentina Carbobe and Valerie Moatti, ‘Greening the Supply Chain: Preliminary Results of a Global Survey’ (2017) 9 Supply Chain Forum, An International Journal 66, 70

[26]Purba Rao and Diane Holt, ‘Do Green Supply Chains lead to Competitiveness and economic performance?’ (2005) 25 IJOPM 898, 900

[27]cf Rao (n 5) 15-24

[28]Anupriya Pandey, ‘How Two Friends Turned-Entrepreneurs Built A Successful Areca Plate Export Business’, SMB Story, https://yourstory.com/smbstory/arbhu-enterprises-two-friends-built-areca-plate-export-business#:~:text=%EF%BB%BFArbhu%20Enterprises%EF%BB%BF%20was,as%20they%20are%20100%25%20biodegradable. (accessed on 17th Jan 2024)

[29]‘Global Cleantech Innovation Programme (GCIP)’ byUnited Nations Industrial Development Programme, India, https://isid4india.org/gcip.php (accessed on 16th Jan 2024) 

[30]‘Schemes for MSMEs’ by Ministry of Micro, Small and Medium Enterprises, Government of India, 2022

[31]Ibid

[32] Ibid

[33] Ibid

[34] ‘India’s Stand at COP-26’: PIB by Ministry of Environment, Forest and Climate change, Government of India, (3 Feb 2021), https://pib.gov.in/PressReleasePage.aspx?PRID=1795071 (accessed on 16th Jan 2024)

[35] ‘Government notifies Guidelines on Extended Producers Responsibility on plastic packaging under Plastic Waste Management Rules, 2016’: PIB by Ministry of Environment, Forest and Climate Change, Government of India (18 Feb 2022), https://pib.gov.in/PressReleasePage.aspx?PRID=1799170 (accessed on 16th Jan 2024)

[36] ‘Waste Management Technologies’ by the Department of Science and Technology, https://dst.gov.in/waste-management-technologies-wmt (accessed on 16th Jan 2024)

[37]‘Ethanol Blending’: PIB, by Ministry of Petroleum & Natural Gas, Government of India, (3 Aug 2023), https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1945427 (accessed on 16th Jan 2024)

[38] This is a drawback because around 96% of the MSMEs in India are unregistered. However, these unregistered MSMEs are not excluded from contributing to the 70% of pollution caused by the country.

[39]Tri Siwi Nugrahani et. al, ‘Green supply chain practices and its impact on community empowerment and poverty reduction in Indonesia’ (2020) 8 Uncertain Supply Chain Management 27