Assocham bats for MSMEs in MP
Updated: Jun 06, 2013 01:46:23pm
Bhopal, Jun 6 (KNN) The Associated Chambers of Commerce (Assocham) has called for urgent government intervention to enhance growth of the micro, small and medium enterprises (MSME) sector in the state.
It has demanded a high-power committee headed by Minister of Commerce and Industry to draft an effective policy to accelerate growth and development process of micro, small and medium scale industries operating in the state.
Further, it released a study titled 'Madhya Pradesh- Enhancing Capacity for Sustainable Growth to mark its '8th SMEs convention,' and presented it to the state industry minister.
"There is an urgent need to evolve an effective strategy comprising various significant aspects like marketing, working capital management, technological upgradation, inter-linkage amid MSMEs, cluster development, skill development, facilitating micro credit, financial inclusion and revival of sick industrial units in wake of rising land prices," Assocham said.
The study pointed out that the MSME sector accounts for about 45 per cent of India's total manufacturing output, about 40 per cent of India's total exports, employing over 70 million people in over 30 million units spread across the country and manufacturing over six thousand products ranging from traditional to high-tech items.
It pointed to the rising input cost of manufacturing, lack of availability of adequate and timely credit, limited access to equity capital, problems relating to storage, designing, packaging and product display, lack of access to global markets and modern technology, inadequate basic infrastructure facilities, dearth of manpower, multiplicity of labour laws and others are certain key challenges faced by the MSME sector.
While suggesting measures to promote and develop marginal MSMEs in Madhya Pradesh (MP), the study recommended the adoption of a consortium approach to solve marketing related problems of the MSME sector; and periodical review of activities to ensure effective financial arrangements for units.
According to the study, there is scope to develop the entrepreneurial culture which could be further improved through specialised training, technical assistance and general consultancy services through professional institutions.
"A cluster development approach should be implemented to ensure sustainable growth of industries and this requires major initiatives to develop ancillaries and voluntary organizations to provide necessary linkages," Assocham said.
Considering the gap between demand and supply of micro credit, the chamber suggested that state government together with leading microfinance companies, non-governmental organizations (NGOs), self-help groups (SHGs) and others should come forward and provide cheaper loans to micro-entrepreneurs. (KNN)
It has demanded a high-power committee headed by Minister of Commerce and Industry to draft an effective policy to accelerate growth and development process of micro, small and medium scale industries operating in the state.
Further, it released a study titled 'Madhya Pradesh- Enhancing Capacity for Sustainable Growth to mark its '8th SMEs convention,' and presented it to the state industry minister.
"There is an urgent need to evolve an effective strategy comprising various significant aspects like marketing, working capital management, technological upgradation, inter-linkage amid MSMEs, cluster development, skill development, facilitating micro credit, financial inclusion and revival of sick industrial units in wake of rising land prices," Assocham said.
The study pointed out that the MSME sector accounts for about 45 per cent of India's total manufacturing output, about 40 per cent of India's total exports, employing over 70 million people in over 30 million units spread across the country and manufacturing over six thousand products ranging from traditional to high-tech items.
It pointed to the rising input cost of manufacturing, lack of availability of adequate and timely credit, limited access to equity capital, problems relating to storage, designing, packaging and product display, lack of access to global markets and modern technology, inadequate basic infrastructure facilities, dearth of manpower, multiplicity of labour laws and others are certain key challenges faced by the MSME sector.
While suggesting measures to promote and develop marginal MSMEs in Madhya Pradesh (MP), the study recommended the adoption of a consortium approach to solve marketing related problems of the MSME sector; and periodical review of activities to ensure effective financial arrangements for units.
According to the study, there is scope to develop the entrepreneurial culture which could be further improved through specialised training, technical assistance and general consultancy services through professional institutions.
"A cluster development approach should be implemented to ensure sustainable growth of industries and this requires major initiatives to develop ancillaries and voluntary organizations to provide necessary linkages," Assocham said.
Considering the gap between demand and supply of micro credit, the chamber suggested that state government together with leading microfinance companies, non-governmental organizations (NGOs), self-help groups (SHGs) and others should come forward and provide cheaper loans to micro-entrepreneurs. (KNN)
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