The Small and Medium Enterprises (SMEs) need 'money and credit' that can enable them to invest in new products, new technologies and new markets, said Arun Maira, Member, Planning Commission on Tuesday.

"To invest in something new, they (SMEs) need money and credit to do so. On the money side, there are two things. One is the SME exchange, which enables them to get small amount of money. The other is the credit growth from the banking sector to the SMEs that enable companies to invest in new products, new technology and new markets," he said on the sidelines of a launch of 'Millennium Alliance: India-US Innovation Partnership for Global Development', organized by Ficci in New Delhi.

Further, he told SME Times that the government is working to strengthen the tool rooms, promote skill development and facilitate technological development among SMEs in India.  

"We have got the tool room that we are strengthening across the country. We are helping companies to get their technological inputs through their production processes which they cannot get otherwise. Skill development again is in clusters where there is the participation of the local industries. The schemes are being strengthened," he added.

He suggested that SMEs should be able to develop a business plan of their own and also be able to manage the risks associated with it. In case, SMEs are not able to do so they will die out soon.

"We are putting a great thrust on the growth of entrepreneurship in the SME sector," Maira said.

"We find that the effective mechanism for enabling many small businesses to have access economically to inputs, credits, technology and the tool rooms," he further added. 

During the launch of Millennium Alliance, he also mentioned to formulate rules for the management of Intellectual Property, patents and innovation for public good.

"India and the US need to dance together in step to meet the needs of the poor and spread goodness for all those who have been bypassed by innovations globally," he said.

There is a need to question the premise that if you don't have patents, you won't have innovations, he said and added that "if things have to be done differently and faster for the poor, we have to re-invent the wheel."

In fact, Nancy J. Powell, US Ambassador to India, said, "With this partnership, we hope to foster generations of innovative thinkers and leaders who will contribute to improving the lives of people everywhere."

"The progress both our nations have made in the last six decades is a testament to our strong partnership.  We hope to add a new chapter to that partnership, as we work together to confront some of the greatest development challenges of our time."

On the Millennium Alliance, she added, "It will leverage Indian creativity, expertise and resources to support and scale innovative solutions to development problems that will benefit populations across India and the world."

"The Alliance will provide innovators with essential resources such as seed funding, business incubation services, networking opportunities and technical assistance and will facilitate their access to equity, debt and other capital," Powell added.