Small units defer boycott of India investor meet | SupportBiz

News

Small units defer boycott of India investor meet

 
Small industrial units in Karnataka, among those Indian states whose annual growth rate is lower than the country’s GDP growth rate, have decided to defer their boycott of the biennial global investors’ meet held in Bangalore following chief minister D V Sadananda Gowda’s assurance that a key demand will be met, according to an industry body.

“The chief minister has assured that the abolition (of trade licensing for small industrial units) will take place,” said Prakash N Raikar, the president of the Karnataka Small Scale Industries Association, an industry lobby.

A trade licensing waiver and a reduction in property tax across urban zones within the state were two demands put forth by the Karnataka Small Scale Industries Association about a month ago, according to a Hindu Business Line report.

“For an industry which is already under the jurisdiction of multiple acts such as pollution control, Factories Act, Shops and Establishment Act, ESI, PF Act which are of statutory nature, trade license is an added burden to the small entrepreneur which dilutes its attention from the productive angle proving detrimental to the growth of the industries,” Raikar was quoted as saying in the report.

Industrialists in the state are also questioning the government's ability to bring in investments into the manufacturing sector, and along with it jobs, via events such as the global investors' meet -- the unavailability of land and poor industrial infrastructure prevented most projects, planned during the first edition of the investors’ meet, from breaking ground,  reports The Economic Times.

Karnataka houses small to large factories, such as the ones belonging to the Tata group or Toyota Kirloskar Motors. But it suffers from its “continuing dependence on export earnings from the information technology and bio-technology sectors, which in turn is heavily influenced by global economic cues,” said chief minister Gowda in a recent interview to the Times of India.

The state’s IT exports grew 50 percent in the 2011-12 financial year to 1.3 lakh crore rupees, according to government data.