Global partnerships key to MSME growth: Govt

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SME Times News Bureau | 01 Nov, 2012
For the growth and development of micro, small and medium enterprises (MSMEs), global partnerships is the key, Joint Secretary, Ministry of MSME, C K Mishra said on Wednesday.

"The Indian MSMEs should look to enter into partnerships with companies around the world as well as strive to become a part of the global value chain. A culture of innovation and the effort to acclimatize in a global business environment will greatly help the enterprises to globalise their activities and grow," said Mishra, while addressing the valedictory session of the India Global Summit on MSMEs 2012, organised by Confederation of Indian Industry (CII) in New Delhi on Wednesday in association with the Ministry of MSME, Government of India.

Stating that finance and technology are most crucial for the overall development of the sector, Mishra said the SMEs would do well to explore global partnerships. He added that global companies will also benefit by sourcing from Indian companies, especially in areas like defence and aerospace, pharma, ICT, agro-processing, among others.

He stressed that the large and small sectors need to share a symbiotic relationship.

The MSME sector has failed to occupy the centre-stage of the planning process or industry although its contribution to India's GDP growth is widely acknowledged. Often this is attributed to the Government and industry's focus on large enterprises. However, the reasons may be different and need careful consideration. The large enterprises would indeed contribute to the growth of the MSME sector.

Mishra urged the enterprises to collaborate much more among themselves and explore ways to establish forward and backward linkages. He added that the Government should create a suitable ecosystem for the enterprises to excel.

Referring to some of the recent policy initiatives such as the public procurement policy and defence offsets which will help the MSMEs in a major way, Mishra said that while the demand side is addressed, due attention is required on the supply side. He underlined the urgent need to build a robust database of the suppliers which can serve as vital inputs for demand management.

Earlier, Deep Kapuria, Chairman, CII National MSME Council & Chairman, Hitech Gears Ltd, said in his welcome remarks that the challenge lies in growing the micro enterprises to the level of medium enterprises and of creating an environment for the medium enterprises to become large entities.

Kapuria expressed hope that the Reserve Bank of India's recent move to set up a special committee to address the huge gap in the financing of MSME sector will yield significant results in the future.

He also highlighted the need for Indian MSMEs to partner global enterprises in a mutually beneficial manner.

Kapuria said that the MSME growth is contributing to India's inclusive growth process but due attention is required on the sustainability issues. The sustainability issues will also open up new business opportunities for the sector, he observed.