New Delhi: With the central government looking make India into a manufacturing hub, it might be a good news for the Indian MSME and Madhav Lal, Secretary, Ministry of MSME, also felt the same as he discussed the intent of the Government and Ministry lead Indian MSMEs on a high growth path.
After highlighting the role played by MSMEs in the economic landscape of the country, he spoke about the dual role that the Ministry of MSME plays in assisting MSMEs in terms of providing them with a supportive framework through policy advocacy and by bringing about institutional reforms in areas of policy vacuum including taxation reform, regulatory systems’ reforms, finance provisioning reforms, etc.
He also shed light on the recent initiatives of the Prime Minister of India, Narendra Modi, for support to MSMEs. "The most significant measures include the Make in India initiative, Skill India for skill development, Digital India for ICT interventions, etc. He also made a mention of the announcements in the Union Budget 2014-15 for the provision of a Rs 10,000 crore venture capital fund and a Rs 200 crore technology centres fund, accreditation of enterprises in this sector, virtual clusters, online filing of EM I and II, incubation centres, etc. These initiatives make it clear that the government is focused on supporting the MSMEs," he said.
He illustrated the need for identifying important verticals within this sector with differing interests with regards to government’s policy interventions and highlighted the merits of adopting a focused approach to benefit these verticals. Madhav Lal inaugurated the 11th edition of Global SME Business Summit 2014 today in New Delhi.
R C Bhargava, Chairman, Maruti Suzuki India Limited disclosed the role played by MSMEs in assisting Maruti Suzuki in its journey to become the biggest car manufacturing company.
He spoke about the diversity of opportunities evolving in the auto components sector for MSMEs. He discussed the role played by Maruti in cluster development, skill formation, etc.
He also added that, to make the PM’s call to grow manufacturing a reality different rules and incentives need to be devised for MSME’s working as vendors to modern manufacturing. A capital investment based criteria is inappropriate and in fact creates a disincentive to improving technology, productivity, quality and reducing costs. He said that industry will not become competitive if this persists.
This applies not only to auto but aerospace, capital goods, power generating and transmission equipment, consumer durables and so on. The entire package of incentives should lead to enhancing competitiveness of manufacturing, and upgrade of all aspects of their work, commented Bhargava.
The report “The New Wave Indian MSME: An Action Agenda for Growth” was released by Madhav Lal at the Session. This report suggests an alternative framework for the definition of MSMEs. This report outlines relevant recommendations for an opportunity framework built around five growth enabling pillars comprising: infrastructure, regulatory framework, funding, performance incentives and skill India.
Patricia Hewitt, Chair, UK India Business Council, emphasized on building a healthy India UK SME partnership. She explained that through improvements in factors like gaining access to networks and contactsthe small and medium enterprises of both countries can be enabled to explore and expand their businesses in each other's domain.