a) The micro, small & medium enterprises (MSME) leadership in the country needs to promote a culture of knowledge sharing and collaboration and reduce the dependence on subsidies and entitlements. Stating this at the inaugural session of the 9th India Global Summit on MSMEs 2012 organised by the Confederation of Indian Industry (CII) in association with the Ministry of Micro, Small & Medium Enterprises, Government of India, in New Delhi on 30-31 October, 2012, Mr Arun Maira, Member, Planning Commission, Government of India, said that the core focus should be on growing the small enterprises into medium enterprises, and paving the way for the medium enterprises to become large enterprises. Effective collaborations among the MSMEs will result in a “united voice” which the clusters can enable, he said.
b) Industry associations have a key role in articulating the growth strategy for the MSME sector. Reflecting on this, Mr Vivek Rae, Secretary, Ministry of Micro, Small & Medium Enterprises, Government of India, said the MSME sector needs to chalk out its own growth strategy which will become a key reference point for appropriate policy interventions. Advocating a bottom-up approach, Mr Rae said this articulation should begin at the cluster level and move up to the state and national levels.
He pointed out that the MSME sector has maintained steady growth in times of global economic distress which is evidenced by the increase in per capita employment in the sector over the last one decade, significant decline in industrial sickness and increase in the filing of MoUs.
Mr Rae observed that as 95 percent of the MSMEs are micro enterprises, it is important for the Government and national industry associations to have greater clarity on who the target groups are for the various initiatives and programmes. “A focused, segmented approach is needed,” he said in this regard.
Stating that the Government has taken several key policy steps in recent times to augment the MSME growth prospects, he made a special mention of the public procurement policy and the defence offset policy as being major growth drivers for the sector. He added that enterprises that leverage the business opportunities that stem from the defence offset obligations, by way of procurements and investments, will become the “icons of India Inc.”
He stated that the offset obligations are expected to create estimated business opportunities valued at $15-20 billion for MSMEs over the next decade. He also made a special mention of aerospace and internal security as key areas where these opportunities will grow significantly.
Further, underlining the importance of the ongoing global summit, he said the event offers the participants the opportunity to share knowledge with regard to mandatory procurements, issue of delayed payments and best practices with respect to the definition of MSMEs.
c) Mr Deep Kapuria, Chairman, CII National MSME Council and Chairman, Hitech Gears Ltd, said in his welcome remarks that CII is creating an institutional mechanism to support groups of 25 small enterprises to graduate to the level of medium enterprises, and help 25 medium enterprises to grow into large enterprises. He drew the attention of the MSME ministry to this initiative and said Government support is key to its success.
Referring to the defence offset policy, he said the industry would also need Government support for effective deployment of the schemes and for building an eco-system within which the MSMEs can leverage the new growth opportunities.
d) Mr John Herhalt, Partner, KPMG Canada, said that governments could support MSME growth by enhancing the legal and regulatory frameworks, finance and capital access, and market access for the enterprises.
e) Mr Ramesh Datla, Chairman, CII Committee on IPR and Immediate Past Chairman, CII National MSME Council and Managing Director, ELICO Ltd, said in his concluding remarks that the MSMEs and large enterprises should look to create greater economic interdependence. This will also help alleviate problems like delayed payments that many MSMEs face.
He said the summit is a crucial step in the direction of building strong collaborations between Indian and global MSMEs. He also referred the MSME Mart and the Procurement Meet at the summit as important initiatives that support the collaborative efforts.
A CII-KPMG report on ‘Growth of MSMEs: Opportunities & Challenges’ was also released on the occasion. The summit drew the participation of delegates from 39 countries around the globe. The deliberations at the event are focused on areas such as technology, innovation, IPRs, credit, finance, ICT, defence, food processing and sustainability.
Confederation of Indian Industry (CII), in association with the Ministry of Micro, Small and Medium Enterprises, Government of India, organised the India Global Summit on MSMEs on 30 - 31 October 2012 at New Delhi.
Opportunities presented by the globalization and the entwined, simultaneous pressure to innovate, opens for the MSMEs, new arenas to engage in what we may call are “global innovation” activities so as to gain, retain, and further strengthen the competitive position. To provide a sustainable focus on the future development and growth of the MSMEs across the Globe, the discussions during the summit revolved around – “Growth of MSMEs: Opportunities & Challenges” – the theme for the India Global Summit on MSMEs.
The summit was an ideal platform to deliberate upon the relevant SME interventions in areas such as, Sustainable Development, Credit & Institutional Finance, Technology, Innovation & IPRs ,Risk Capital, Venture Capital & Private Equity funding , Defence Offsets, Food Processing and Information Technology etc., among others. The other highlights of the summit was the MSME Mart, Investor Meet & Procurement Meet.
You will get access to following Knowledge Resources by subscribing to the Digital
Library of this event.