Empowering MSMEs with News & Insights

India not in favour of MSE forum in WTO because of concerns over labour issues: KK Jalan

Updated: Mar 24, 2017 06:04:21am
image

India not in favour of MSE forum in WTO because of concerns over labour issues: KK Jalan

Chennai, Mar 24 (KNN) India is not in favour of a MSE forum in the World Trade Organization (WTO) because of concerns over labour issues, KK Jalan, Secretary, Ministry of MSME has said adding India is concerned on the possibility of labour issues becoming a non tariff barrier to markets.

While addressing a seminar on role of MSMEs in enhancing Indo-US trade organised recently by the Indo American Chamber of Commerce and the FIEO, Jalan said the government is looking beyond the criterion of capital employed to better define MSME sector for growth.

At present, the micro, small and medium enterprises (MSMEs) are defined on the basis of different slabs of investments ranging from Rs 10 lakh to over Rs 5 crore.

Now the government is planning to include parameters such as employment generation and turnover in defining the MSMEs keeping in mind the sector is second largest employment generator in the country.

The role of MSMEs in employment generation is being increasingly recognised. It is second only to agriculture in generating jobs, he said.

“In the WTO, for instance, developed countries are keen on bringing in a MSE forum in the context of the potential of the sector for job generation. While this is a welcome step, India is concerned on the possibility of labour issues becoming a non tariff barrier to markets,” he said.

The major challenges facing the sector are credit flow, technology development, skilled human resource, regulatory compliance and affirmative action. The US can help Indian MSMEs in all these issues.

India can be a cost effective base for US MSME production emulating the automobile sector. An Indo-US forum for MSMEs would benefit mutual cooperation, he opined.

India’s public procurement policy which mandates 20 per cent from MSME sector is a part of affirmative action. The US has a well established system and “we are adopting some of those practices,” he said.

With the shift to GST around the corner, compliance cost is a major concern of the MSMEs as it does not distinguish between large and small companies. The authorities have recognised the issue and are addressing it.

COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *