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Walter D’Souza, convener, Federation of Indian Export Organisations (FIEO) Committee on Agro Exports and Agri Export Zones, recently said that Small and Medium Enterprises (SMEs) needed a comprehensive programme for improving technology and better access to credit.
Inaugurating an SME workshop on ‘Growth opportunities for exporters’ organised by the FIEO and ICICI, Mr. D’Souza said that to sustain growth it was essential to lower the cost of manufacturing and improve the quality of products. Rising transaction costs and lack of infrastructure were affecting the prospects for higher exports.
Small businesses lack access to capital and money markets. Investors are unwilling to invest in proprietorships, partnerships or unlisted companies as the risk perception about small businesses is high.
In India, many small manufacturing enterprises do not have access to adequate bank finance and only about 16 per cent of the total bank credit finds its way to the sector.
Despite being a priority sector for lending, small manufacturing enterprises get just about 8 percent of their annual turnover as working capital requirement, as against the normative requirement of 20 percent.
M. Balagangadharan, Regional Joint Director of Foreign Trade, spoke on the role of foreign trade policy in promoting exports by SMEs.
Money Management Consultants Ltd
New Delhi, India
Free Member, Joined :05/11/2007
No of Topics Posted : 113
Reply/Comments : 14
In current conditions until SME have volumes and wherewithall to acheive these volumes it is not going to be easy to survive.
The concept of SME should be to rapidly expand into large scale manufacturing once the hibernation period is over.To remain forever a SME is akin to committing harakiri.A SME status in current conditions is only to learn and perfect the assimilated skills and bloom to face large scale manufacture.
It is important that the Govt. and Banks give priority status and concessional finance and if needbe subsidies and tax holidays to such enterprise.
Hey: have you forgotten to note that MNCs like big auto makers are now invading the SME service sector like Packaging.Check out with Hyundai,Samsung and their club.Ask them to do something tech oriented and export oriented.Dont bite at everything.
High time our Govt. tells them to do what they came here to do.
Shiva
Free Member, Joined :04/19/2006
No of Topics Posted : 0
Reply/Comments : 2
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