According to the IFC, informal firms are estimated to account for around 74% of all MSMEs in the world, and about 77% of all MSMEs are based in developing countries. Indian MSMEs, given their sheer size and spread, can play a significant role in strengthening the idea of inclusive and sustainable industrial development (ISID) as propagated by the UN, believes René Van Berkel, Officer in Charge/UNIDO Representative (designate), India. "With a focus on enhancing manufacturing for the future, UNIDO stands for strengthening factories, which besides producing quality products are addressing the challenges faced by humanity. The idea of sustainability has economic, social and environmental considerations and in UN's bid towards meeting various sustainable development goals (SDGs), we envision a big contribution by Indian MSMEs," Berkel said in the backdrop of soon-to-be celebrated UN MSME Day (scheduled on June 27). Highlighting the disparity that exists in terms of technology adoption, awareness and acceptance levels with regard to the very idea of inclusive development across the MSME spectrum, he added that due to lack of awareness, many Indian MSMEs carry a negative perception that the whole idea of sustainability could hurt their business interest - - which certainly is not the case. "There exist challenges in reaching out to MSMEs that remain reluctant to try out new production models and methods. However, a majority of businesses are at the initial stage of adopting environmental responsibility -- which is a welcome sign," he said. The UN, which calls micro small and medium enterprises, the "first responders to societal needs", will celebrate MSME Day on 27th June. Its specialised agency UNIDO, mandated to promote industrial development, inclusive globalisation and environmental sustainability, believes that Indian MSME landscape, characterised by a large informal base, poses many unique challenges. "For long, Indian MSMEs preferred jugaad economics (low-cost indigenous solutions) in many of their processes, but certainly, going for a cheaper option is not always in their self-interest," added the representative of the UN agency, besides advocating for capacity building programmes for MSME entrepreneurs to bring them in sync with a holistic idea of efficiency, sustainability and inclusiveness. According to the International Finance Corporation (IFC), informal firms are estimated to account for around 74% of all MSMEs in the world, and about 77% of all MSMEs are based in developing countries. Although MSMEs generate new jobs, they face many challenges in day-to-day operations. Financing constraints are also magnified for informal firms, which tend to be small in size, and although often less productive than formal enterprises, contribute significantly to economic activity and employment, says the UN.