By Krutika Kshirsagar
The Ministry of Micro, Small and Medium Enterprises (MSMEs) is expected to send a Rs 5,500-crore ‘India Inclusive Innovation Fund’ proposal to the Cabinet soon, with a view to encourage R&D activities in these units. This is a case in point of making the best of innovation. This proposal shall definitely help in garnering employment opportunities across the length and breadth of the country through innovative enterprises. We can never afford to ignore these industries. With the advent of the enterprising and dynamic economy in 1951 and the subsequent industrial policy, the government earmarked a special role for the small-scale and medium scale industries in the Indian economy. Proper measures were adopted and a framework put into place to fortify and safeguard these precincts and predominantly, the small-scale industries from 1951 to 1991, till the nation adopted a policy of liberalization and globalization.
Small and Medium Enterprises (SMEs) have played an important role in Indias economic growth. With over 30 million units, SMEs accounted for 17 per cent of the countrys GDP in 2011. However, the major impediment in the expansion of SMEs is the unavailability of adequate and timely funds to finance their growth plans. Measures proposed by the government would ensure availability of adequate funds to MSMEs to power their growth. Small Industries Development Bank of India (SIDBI), the countrys apex development bank has been targeting an increased amount of funds to the microfinance institutions. To overcome the prevailing power crisis, Coimbatore SIDCO Industrial Estate Manufacturers’ Welfare Association (COSIEMA) has decided to join hands with Gas Authority of India Ltd (GAIL) for supply of gas through bullets and pipelines to individual units for power production. Also, the Ministry is planning to hold discussions with banks to increase monetary flow to this sector. Innovation needs to be encouraged and this can be done only by ensuring timely flow of credit, promotional and marketing guidance and tackling the issues strategically.
SIDBI has been funding innovative projects and has recently pledged support to a Delhi-based print solutions company Printland, which wants to expand solutions in the international market. Talking about international competitiveness, it is important that products and services be priced at levels competitive with those of other countries. The evolution of overall competitiveness of a country over time is influenced by macro-economic and micro economic factors. The entire supply chain has to be managed efficiently in order to price the commodities and services aggressively. Another parameter to be considered is the exchange rate. The falling dollar will affect the competitiveness of the SMEs too. Thus, these are in no way an under-developed lot. They too face export related concerns and sufficient reforms are required in this arena.
An important lesson can be learnt from the opening of the first UK-India Business Centre in Gurgaon to help British companies, especially SMEs to enter the Indian market. The purpose of this centre, as Lord Stephen Green, trade and investment minister mentioned, is to help UKs small and medium sized businesses to work more intimately with developed businesses in India and help them get the most out of the Indian market.
The turf of agriculture in India would flourish copiously if they are supported through research and development. International initiatives provide interesting insights into the developments happening around the world. A Bangalore-based start up named Barrix Agro Sciences has fostered pheromone-based pest control traps which have helped the farmers in increasing their returns. The problems faced by farmers like washing away of pesticides and high costs have been solved by this enterprising solution. The pheromones developed by Barrix are artificially synthesised smelling agents that attract pests. Instead of eating the crops, the pests are attracted to the pheromones in the traps.
It needs to be appreciated how the chrysalis of the small and medium businesses in India presents opportunities to the other sectors. Indian software companies have been engaged in providing cutting-edge technologies to these eager industries. IT giants like Infosys, Wipro and TCS that boast of a repertoire of world-class clients have been targeting millions of these status seekers. These start ups are going online, thus creating a wide base for the IT companies to tap into.
The supply chain from the MSMEs to the markets requires a revamp. The middle men must be eliminated in order to provide a direct link between labourers and lucrative markets. Artisans are an essential part of our economy, with the unofficial national estimate being a staggering two crore. A start up, Caravan Craft Retail, under the aegis of National Skill Development Corporation has committed itself to building a sustainable model to train artisans in India. More initiatives in this direction are the need of the hour. Caravan is creating fancy products using the time-honoured skill sets of the artisans to cater to customised needs of consumers across the globe.
No matter how much ever we talk about entrepreneurship, it is organisations like these and the people behind their promotion that actually do justice to the real essence of entrepreneurship.
After completing B.Tech from Institute of Chemical Technology (UDCT), the author is currently pursuing MBA in Energy and Infrastructure from School of Petroleum Management, PDPU. She has been working as a co-ordinator of CII-Young Indian for the last one year. Her strengths are good analytical ability, proficiency in public speaking, good writing, oratory and communication skills, zest and determination to explore new ideas and working in unison with various groups as a group member as well as a leader.