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MSME definition needs to be refined to enhance global competency – CII President

MSMEs  contribute to 95% of the enterprises in the country with 40% of the total international exports. To improve its capacity and competency, it needs to interact with the international  supply chain. With this as the background, the Confederation of Indian Industry organised the 15th Global SME Business Summit with the theme “Building Partnerships through Global Value Chains” on 19th December, in New Delhi

President CII and Vice Chairman Bharti Enterprises Mr. Rakesh Bharati Mittal urged the government to facilitate timely payments. As of February 2018, there has been a change in the definition of MSMEs, from investment amount to turnover. Mr. Mittal suggested for  expedition of the acceptance of the new definition of Micro, Small and Medium enterprises with further refinement in order to be competent to the global market and standards.

Shri Giriraj Singh, Hon’ble Minister for MSME, speaking at the 15th Global SME Business Summit said that the Government of India has taken many initiatives to eliminate the hindrances and ease the developmental ecosystem of MSMEs. This is to encourage the Micro, Small and Medium Enterprises to compete in the domestic as well as international markets. Mandatory procurement by PSUs have increased from 20% to 25% and there is  3% reservation for women. He added that technology is the key aspect to drive this sector globally, and said government has set up tech-centers around the country. In addition, 141 cluster development programs have been conducted to train artisans and manufacturers.

Dr. Arun Kumar Panda, Secretary MoMSME said that according to 2015-2016 data, there are around 63 million enterprises in India, of which majority are micro and small segments. He urged foreign business companies exploring the Indian market to add to their global value chain and visit the Udyog Aadhaar Portal,  where they would be able to identify and integrate MSMEs in their supply chain. Keeping in mind the aspect of global competency Dr. Panda emphasised on the necessity to comply to international standards. “The government has started the ZED Certification Scheme (zero manufacturing defect and zero environmental impact ) that guarantees the resultant product being of high quality”. This would elevate Indian MSMEs to a platform favourable for competing globally. Technology plays an important role in influencing quality of product, towards which, 20 large and 100 small technology-centres (with expertise in both block chain and artificial intelligence) have been established across the country and 15 more are under construction.

Shri Suresh Prabhu, Hon’ble Minister of Commerce and Industry and Civil Aviation hoped that the 15th Global SME Business Summit which is specifically focusing on Global Value Chains, comes up with some key action points and operations. He said, “The dynamics in the ecosystem of global business has changed as outsourcing has become a part of manufacturing. This has enabled firms to focus on their own unique skill and build strong international linkages.” He informed that the  MoCI is working on a new Industry Policy as well as developing packages to  address the issue of delayed payments and product development. In addition, the Ministry has identified 15 different locations around the world for trade promotion services. The minister mentioned that several policies are underway such as a new Industry Policy which will be announced shortly. The MoCI has identified 15 different locations all over the world for trade promotion services. This will also help in facilitating compliance to international standards.

Mr. Shreekant Somany, Chairman CII National MSME Council and Chairman & MD, Somany Ceramics Limited, addressed the delegates and said that India is open to become a global hub for markets we seek strength of itself. He emphasised that effective functioning of SMEs is key to the success of large enterprises and vice-versa and expected that operational outcomes come out of the summit.

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