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Making Indian MSMEs globally competitive
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Bikky Khosla | 14 Oct, 2014
A new report, "The new wave Indian MSME: An action agenda for growth", by CII-KPMG released last week says that India will emerge as one of the leading global economies over the next decade and to make the country's micro, small and medium enterprise (MSME) sector backbone of this economy, we need to make these firms globally competitive. The report comes with some valuable suggestions which I would like to share here with you.
Some important recommendations made in regard to infrastructure include 25% land reservation for MSMEs at all industrial corridors; development of national, regional infrastructure and industry specific clusters equipped with facilities like tool rooms, B2B access and e-platforms; promotion of IT development in MSME clusters and emphasis on cloud computing; improvement of road, rail and air connectivity, and promotion of industry-academia collaboration for R&D and technology support.
On regulatory reform, the study voices for a single comprehensive MSME law for the whole country. In addition, it also suggests the introduction of effective policies to help MSMEs deal with two lingering problems -- delayed payment and difficult exit. There are two other important steps the report mention about: development of a National procurement policy for public and private enterprises for specified areas in each sector, and introduction of direct and indirect tax benefits for micro, small and medium enterprises in various ranges and for different periods.
On funding, the report talks about incentivizing debt funding and investments by high-net-worth individuals and funds in MSME segment. For making MSME lending attractive to banks, a number of steps, including separate sub limit for sub sector for MSME for funding, rationalized interest rate for credit rated firms, low-cost credit scheme for micro firms and start-ups, etc. are put forward. In addition, the report also suggests a scheme that can ensure speedy financial assistance for exporting SMEs to scale up operations.
For utilization of the Rs 10,000 cr MSME development fund and the Rs 200 cr MSME technology fund announced in the Budget, the report suggests, among other measures, creation of fund facilitation centers with linkage of industry associations, equity funds, banks, MSME, etc while for skill development it suggests -- besides upgradation of skill development institutions and promotion of entrepreneurship and innovation -- different types of sops, such as on generating additional employment and for employing women and special categories.
I invite your opinions on these suggestions. What more do you think the government should do to make our MSMEs globally competitive?
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Industry-academia collaboration on paper
Harish S Rao, Head- R | Wed Oct 29 04:09:25 2014
The point " promotion of industry-academia collaboration for R&D and technology support" have been seen in many documents but is there a procedural plan in achieving this.
Compared to many European & Japanese set-up, our universities and industry do NOT have a platform for mutual benefit.
R&D professionals MUST be able to tie-up with universities for providing training and Universities must tie-up with industries for R&D projects/internship. Vocational training schools are a must for skill development.
For delayed payment and not getting prope incentives
Rupali | Wed Oct 22 06:04:14 2014
I would like to tell u that it is really one of the step that government is going to take but there should be strict rule against delayed payment employers and government should bring rule for increasing incentives after particular period with result of employee performance.
Survival of MSMEs
VT Vijayaraaghavan | Mon Oct 20 11:49:32 2014
Of late it is seen that in any field especially in the Auto Sector, MNCs are setting up shops which has the following setbacks to the Indian promoters:
1. A level playing field is not there for the Indian Players in the terms of Finance, cost of Funds.
2. Because of the technological advantage they have , they are able to bring in the latest products into the market.
3. The OEMs prefer their Tier 1 suppliers ,who are already supplying them abroad , thereby the Indian industries will loose out in the business over a period of time.
4. The MNCs bring in one unit of money which gets multiplied several times when invested here.
To over come this, we have to bring in the Colloboration route with major share by the Indian Company.
Please treat this as a very urgent and pressing issue for the MSMEs.
Non-acceptance of MSMEs certificate by R.R.Dadar(w) Branch , DENA BANK
Mukesh Kumar Aanand | Thu Oct 16 09:27:55 2014
R.R.Dadar(w)Branch, Dena Bank don't accept & sanction collateral free 100 lacs loan under Credit Guarantee Fund Trust Scheme & MSMEs in 12 yrs. old current account, only give unnecessary queries about this . What will I do for it. I contacted all the higher authorities, did n't get positive reply till now. I have submitted my Credit Facilities Appl. vide Ref. No. PII/PC-CC/0129/2014 dt. 30/.07/2014 , after lodged my complain in Department of Financial Services(Banking Division) Reg. No. DEABD/E/2014/03206 dt. 05/07/2014 and already complaint in Banking Ombudsman against misguided banking advice of Mr. J.S.Nijasure (chief manager) & his Zonal Office. They act only harassmental activities by un wanted, subjectless queries.I have already lodged complain to G.M , CMD Dena Bank, but no any satisfied action. Most of official of R.R.Dadar(w), Dena Bank & Z.O (Herniman Circle)..... Imperial International, Mumbai (imperial_intl@yahoo.com) Mob: 9870732921
Remove paperwork
harish todi | Thu Oct 16 01:05:03 2014
One simple and effective way to make MSMEs really competitive is to remove paperwork required by them. Laws for them should be so simple that they would not required to hire multiple employees or consultants for anything but their core business. This is possible and theoretically the correct way to do business. Currently we keep records and trunk loads of paperwork for ages, whereas all this is historical data which is never required. We need to file only minimum required documents at source, pay fees and taxes at defined points and move on. This will reduce a great non productive burden from organisations and government bodies increasing our competitiveness at a profit to both business and the state.
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Re: Remove paperwork
jagdish aggarwal | Fri Oct 17 13:58:29 2014
Very true, Indian industry has to face so many hurdles created by govt departments in imports and exports that the industries fails on commitment.Now industries hopes that Modi govt will change the old corrupt systems.
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Indian MSMEs and export - bureaucratic mountains
DR.WOLFGANG BIEDERMANN | Wed Oct 15 20:41:08 2014
I have the experience, that the MSME Indian companies must to move great mountains of bureaucracy for success. The question from Bhushan Ketkar meets the core "When smaller German companies can supply worldwide, why not we" I have repeatedly attempted market related products of small companies from India to import - without success. DR W.Biedermann, Colombia
Industrial growth in under developed districts
Kamalakar Sawant | Wed Oct 15 13:59:25 2014
It is very pertinent to explore possibilities of setting up micro and ssi units in under developed region where no major industries are venturing . The district like Sindhudurg is producing Cashew Nuts, Alphaso Mango, Kokam ( Garcnia Indica ) in abundance. The processing industries is having bright prospects where units and farmers come together and form CLUSTER.Sidhudurg ind association has already prepared projects to the Government which will add to District GDP and create employment. What is needed is political will power and creation of enthusiasm amongst the government officials concerned. Though Government has laid excellent policies to ensure MEME growth what is lacking is implementation of the various schemes especially CLUSTER Movement
MSME Development Fund and MSME Technology Fund
Devindar Singh Sodhi (09867599406) | Wed Oct 15 12:37:15 2014
Sir,
We are an MSME located at Bhivandi - Maharashtra. We are in to manufacturing of ceratain life saving Surgical Products.
We are interested to learn as to what is this MSME Development Fund and MSME Technology Fund and what benefits, as an MSME, we can get of these allocated Funds (Rs. 10000 cr & Rs. 200 cr respectively.
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Re: MSME Development Fund and MSME Technology Fund
Er. Taliwati Longchar | Wed Oct 22 05:37:28 2014
Sir, I have seen practically that MSME Fund SME loan is not working in North Eastern Region except Asom.Other places are not getting the benefits of the very viable loan facilities wherein commercial banks are coming forward to facilities the First generation Entrepreneur in Nagaland. Due to NPA problem in the region all the commercials banks are not taking any risk to give CGTFMSE, SME loan etc. Further During the SLBCC meeting i had discuss the same matter facing the problems by Educated Um employee youths in Nagaland wherein Govt Jobs is very limited which we cannot expanded, Hence only way out is Self-employment for the Young people now-days. Let us do our responsibilities today and clean up the our society from our own kitchen first so that our people will over come one day. we need conviction, determination, Courage,innovation, good leadership to delivery the grass road development to generate our income to live. we need new technology like wheat floor Mill from Chinese technology which is very low investment comparing to other technology, Bricks making, Food processing method, Rubber processing, Sandal wood soap making, Agra oil, which are essentially available in Nagaland.
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Re: MSME Development Fund and MSME Technology Fund
Nagesh Kini | Wed Oct 29 12:56:53 2014
In our country Govt. schemes are very good in paper and plans. But real problem is percolation and implementation on ground level. The real hurdle getting them I pigmentationis beurocracy. From top to bottom every one tries to put a spanner in th the wheels simly because of Mai Bap attitude of the beurocrats. They are not answerable to anybody why the schemes are not implemented. Even some persons try to divide and rule tactics for not getting the scheme implemented or sanctions. This is my personal experience.
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MSMEs in Service Sector
Cdr Ninan P Mathai IN (Retd) | Wed Oct 15 05:40:22 2014
Sir, The editorial, as well as the Government thinking, has only covered the Production facilities. Though not as famous as the Production segment, there is also a Service segment which has not been considered in the reports. These include the logistic sector, including transportation, firms involved in installation and field trials, on land, in ships and submarines and in aircraft etc. These are also MSMEs which need support and funding.
Making Indian MSMEs globally competitive
Adussami | Wed Oct 15 05:34:25 2014
1- Payment must be garanteed within 30 days.
2- Arm twisting by Biger companies and PSU'S taken care.
3- Corruptoin is relevant in both pvt. and government cos.must stop at any cost.
Indian MSME Globally competitive
Bhushan Ketkar | Wed Oct 15 05:14:55 2014
As MSME we need govt. help in forging technological Tie up and Technology transfer in very very economical way (MSME do not have deep pocket to pay fees) Govt shall have funds for such Technology Transfer.
We also wish knowing strength and expertise of other countries in Particular segment, Govt shall take it on Counter Govt level to motivate / force local expert to share information /technology as country to County Association. This will benefit MSME to come out of "local" "small timer" and "Cheap but bellow International STD" STAMP.
When smaller German companies can supply word wide why not we
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