The Ministry of micro, small and medium-sized enterprises (MSMEs) is contemplating increasing the corpus towards innovation several times, to INR 2,500 crore, reports The Hindu Business Line.
This would help the MSME sector produce more innovative products, thereby increasing global competitiveness of the sector. The announcement was made by RK Mathur, Secretary, MSME, at the sidelines of the FICCI MSME Summit 2012 at New Delhi recently.
Presently, a corpus of INR100 crore is provided by the Ministry to MSMEs for innovation, annually. The sum is largely used for the setting up of testing centres and R&D facilities.
Mathur stated that innovation among SMEs is crucial for growth as well as employment generation. Considering that MSMEs contribute nearly 45 percent of India’s total industrial production, this move will significantly help in the overall growth of the country. Mathur also added that there is an urgent need to convert low-end industrial estates into high-end ones, which later need to be converted to world-class.
Ashwani Kumar, Minister of State for Planning, Science and Technology and Earth Sciences, also spoke at the event. He stated that India needs to focus on innovation if it wishes to achieve a competitive edge in the global market. “The centre of economic activity has shifted from the West to Asia. By the ability of MSMEs to absorb innovation, India could continue to stay at the same (prime) level,” he added.