Asia Economic Dialogue 2025 Concludes in Pune, Focuses on Economic Resilience Amid Global Fragmentation

Pune, 22nd February 2025: The Asia Economic Dialogue 2025, the annual geoeconomics conference organised jointly by the Ministry of External Affairs (MEA) and Pune International Centre (PIC), concluded in Pune on Saturday, February 22, 2025.

Themed ‘Economic Resilience and Resurgence in an Era of Fragmentation’, this was the 6th edition of the AED jointly organised by the MEA and PIC. The 3-day international conference brought together more than 40 speakers including academicians, policymakers, and industry experts from nine countries — Australia, Egypt, Indonesia, Japan, Nepal, the Netherlands, Singapore, South Africa, and Sri Lanka.

On Day 3, the session on ‘Unlocking Growth Potential by Empowering MSMEs’, chaired by Prashant Girbane, Hon. General Secretary, PIC; Director General, Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), highlighted the important role MSMEs play in driving national economies. The panellists were Ateesh Kumar Singh, Joint Secretary, Ministry of Micro, Small and Medium Enterprises (MSME), Government of India; Reinhold von Ungern-Sternberg, Director, International Markets, BVMW; Tomo Kawane, Senior Researcher, Keio University, Japan; and S C L Das (online), Secretary, MSME.

Ateesh Kumar Singh said formalisation is key for MSMEs to access credit and financing; government schemes and incentives; and export markets. On government initiatives to boost MSMEs, he listed steps to facilitate ease of doing business; simplifying regulations such as through the Jan Vishwas Bill (2024) decriminalising minor compliance violations; Emergency Credit Line Guarantee Scheme; and Raising and Accelerating MSME Performance through capacity building (upskilling); making govt. programmes more accessible; and encouraging adoption of latest tech and best practices.

S C L Das explored the pivotal role of MSMEs in the context of globalisation, noting that while globalisation is evolving amidst trends of de-globalisation and localisation, interdependence and cooperation remain essential. He emphasised that COVID-19 highlighted global interdependence, demonstrating how local crises can have worldwide impacts. Also, climate change and sustainability challenges require global collective action, emphasising the need for resilient MSMEs. After agriculture, MSMEs are the second engine of growth, contributing significantly to 5 E’s — economy, employment, exports, empowerment, and environment. MSMEs account for 45% of India’s total exports, serve as major job creators, empower marginalised communities and women entrepreneurs, and promote sustainability and energy efficiency.

However, MSMEs face several challenges, including limited access to credit and finance, modern technology, markets, and workforce development. To facilitate their integration into the digital economy, the formalisation drive, launched in July 2020, has led to the registration of over 60 million MSMEs, with a target of 80 million by the end of 2025. Notably, women-owned MSMEs now comprise 39% of registered businesses, underscoring their increasing role in entrepreneurship. The 2025 budget has further incentivised MSMEs by raising turnover and investment criteria by 2–2.5 times, encouraging both investment and expansion.

Prashant Girbane said MSMEs are a critical part of India’s economy, contributing significantly to employment, exports, and GDP growth, with the turnover threshold increasing from ₹250 crore to ₹500 crore as per the Union Budget 2025. The total number of MSMEs in India are estimated to be from 60 million to 200 million companies. Girbane stressed that for countries to be more resilient and resurgent, their economies need to be more resilient and resurgent. To achieve resilience, he pointed out, recognising the vital contributions of MSMEs is essential.

Speaking about Japanese MSMEs, Tomo Kawane said aging population and succession issues were problems faced by SMEs in Japan and therefore SMEs may merge with large companies. She said India’s emerging economy could provide a solution and Japan can benefit from India’s youth workforce and innovation mindset, adding that business delegations are increasing visits to India. She said Japan can also learn from India’s concepts of ‘sewa’ and ‘jugaad’ and tap into young talent from beyond IITs and IIMs.

Giving an overview of the German MSME sector, Reinhold said MSMEs were the backbone of the German economy contributing to 50% of Germany’s GDP and employing 60% of the German workforce. On the potential for India-Germany collaboration, he said German MSMEs investing in India can contribute by promoting corporate identity and workforce stability; encouraging skilled workforce development; and strengthening India-Germany business ties through shared MSME values.

Experts call for sustainable use of ocean resources
Oceans should be seen as development spaces: Dr. Manasi Singh
India strengthening maritime partnerships: Puneet Agrawal
90% of challenges, resources, opportunities lie under water: Dr Arnab Das
Need transparent regulatory frameworks to boost Blue Economy: Greg Johannes & Subhashini Abeysinghe

The last session at the MEA-PIC AED 2025 — ‘Blue Economy in India’s Extended Neighbourhood’ (Day 3) — underscored the importance of a sustainable approach to ocean resources management, marine health, biodiversity, and social inclusion, aligning with the UN Decade on Ocean Science for Sustainable Development (2021-2030). Chaired by Dr. Manasi Singh, Asst Professor, School of National Security Studies, Central University of Gujarat (CUG), the session had as panellists Subhashini Abeysinghe, Research Director, Verité Research, Sri Lanka; Puneet Agrawal, Addl Secretary (Indian Ocean Region), MEA, Govt of India; Dr. (Cdr.) Arnab Das, Founder and Director, Maritime Research Centre (MRC), Pune; and Greg Johannes, Chair, Blue Economy Cooperative Research, Australia.

Dr. Manasi Singh stressed that any discourse on blue economy needs to go past the business-as-usual model, which tends to see oceans and seas as extractive spaces. Oceans must be seen as development space where we integrate marine health, biodiversity conservation, livelihood protection, and social inclusion into our economic modelling and decision-making processes.

Puneet Agrawal said India is strengthening maritime partnerships by enhancing domain awareness, providing assets for effective monitoring, and supporting the sustainable development of marine resources while addressing traditional and non-traditional challenges. He highlighted India’s Blue Diplomacy, referencing Prime Minister Modi’s SAGAR Vision (2015) and India’s role in capacity building through initiatives like the International Solar Alliance and the Colombo Security Conclave. Dr Arnab Das said the Earth is 75% water; 70% marine, and 5% fresh water, and 90 percentage of challenges, resources, and opportunities lie below the surface of the water. He discussed the importance of underwater domain awareness, emphasising the role of AI and digital transformation in addressing challenges like deep-sea mining and illegal fishing. He called for localised solutions tailored to India’s tropical waters.

The session also addressed financing and governance challenges, with Greg Johannes and Subhashini Abeysinghe stressing the need for transparent regulatory frameworks to attract investment in blue economy projects. Mr. Greg Johannes said the ocean is already very crowded and there’s a very complex web of users out there.

So, accommodating the aspirations of existing players while creating space and opportunity for new players is challenging, particularly when you think about the interests and activities beyond national jurisdictions. Noting that 85% of Australia’s population lives near the ocean, he discussed offshore wind potential to replace Australia’s electricity grid and emphasised the importance of regulatory frameworks for sustainable seafood production and renewable energy.

Subhashini Abeysinghe said that in a region where the geopolitical contestations are intensifying, ports are increasingly viewed as dual purpose, where they can be used for military purposes, and not just commercial purposes. She outlined Sri Lanka’s challenges and opportunities, particularly in maritime tourism, fisheries, and offshore energy. She stressed the need for international collaboration to address issues like illegal, unreported, and unregulated (IUU) fishing and harness offshore wind and oil reserves in the Gulf of Mannar.

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Over three days, AED 2025 addressed the complexities of economic fragmentation and discussed actionable pathways for resilience and resurgence. Through nuanced discussions on the challenges and opportunities, the conference aims to empower nations, industries, and individuals to navigate the evolving geoeconomic landscape.
Among the pivotal geoeconomic topics explored at AED 2025 were Artificial Intelligence (AI), Cyber Security, African Transformation, Blue Economy, the International Monetary System, Micro, Small and Medium Enterprises (MSMEs), and Climate Change.

The conference featured Fireside Chats and sessions on ‘Re-imagining Leadership in the Era of AI and Automation’; ‘African Transformation: From Aid to Investment’; ‘Survival Before Sustainability: An Agenda for this Decade’; ‘Collaboration on Cyber Resilience: An Economic Imperative’; ‘International Monetary System: Challenges and Reforms’; ‘Unlocking Growth Potential by Empowering MSMEs’; and ‘Blue Economy in India’s Extended Neighbourhood’.