‘Small-scale industry needs a facelift’

The small-scale industry should technologically upgrade itself in order to compete with the world market, the industry leaders said here on Friday. In a seminar jointly organised by the Confederation of Indian Industry and the Small Industries Development Bank of India, former CII chairman Gaurav Nanavati said the mindset of the small scale industry should be changed to compete with the global economy.

He said the previous governments used to support the small sector in terms of subsidy. But the governments were compelled to curtail it with the liberalisation of the economy in 1991. He said that SSIs should improve the quality of the product by upgrading the technology and improving its quality.

Stressing on competitiveness, Mr Nanavati said the World Trade Organisation may benefit India but at the same time it may create problems too for the SSI units. Hence, the SSIs should be ready to face these challenges, he said.

While delivering the keynote address, Sidbi (western regional office) chief general manager P.R. Das said the SSIs play a major role in the Indian economy as their number exceeds 31 lakh in the country. Their share in the total production is 40 per cent whereas it’s contribution in the total export is 35 per cent. Mr Das said a high quality of the product is necessary. He said one of the major problems is that the SSI has failed to upgrade its technology.

Giving information about various Sidbi schemes for the SSIs, Mr Das said it has formed a national venture of Rs l00 crores with the assistance of science and technology department. The contribution of Sidbi is RS 40 crores in this venture, he said.

Explaining the modus operandi of Sidbi, Mr Das said it gives direct and indirect finance through the primary lending institutions like banks and financial institutions.

Apart from the export finance, the organisation has market finance and micro finance schemes, he said.

Deputy general manager (international finance department) N.K. Prasad explained the different export finance schemes of Sidbi. He said the Sidbi has a new scheme for the preshipment credit in foreign currency and the export bill financing.

The main aim of this scheme is to give internationally competitive rates of interest to export by the SSIs.

Tell us what do you think about this article?

Compiled from local news media