Tuesday, 20 September 2016

MSME secretary urges small companies to focus on substituting imports


Monday delivering the inaugural address at the FICCI-MSME's sixth annual MSME Summit on the theme 'Propelling MSME Growth: Ways & Means', KK Jalan, the MSME secretary said:

• Government was also planning to identify 25-30 sub-sectors in MSMEs and focus on these sectors for raising productivity and enhancing the overall landscape of MSMEs.

• He urged the MSMEs in the country to update the details of their enterprises on the MSME data bank. He added that the updated data would be used for evolving parameters for the growth of MSMEs in the country.

• He said that there was a need to carry out research in this area as it has been seen that SME credit by banks was going down. There was a need to carry out academic work in the space to understand the challenges and issues of the sector.

• He suggested that for MSMEs, a dedicated financing institute could be established like private sector NBFCs. He suggested floating of separate NBFCs for assisting micro enterprises. _"I would shy away from having some SIDBI-like institution or some state institution in this because state institutions have their own problems. Therefore, let them be in the private sector," _ he said.


• Ancillary industries contribute about 50-60% of MSME manufacturing and should be focused on, Jalan said. Substitution of imports can be a major propeller of growth of SMEs, MSME secretary K K Jalan said, singling out toys manufacturing as an example.

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