New Delhi, June 6 (KNN) The Department of Industrial Policy & Promotion (DIPP) is formulating a “Future Ready Industrial Policy” for which six groups including one on  “Manufacturing and MSME Contribution” have been formed.

For this, DIPP held its first meeting in the national capital on Monday to seek inputs from representatives from MSME bodies. AS & DC MSME SN Tripathi is the coordinator of the group.

One of the key issues that are being considered to be addressed by the new policy is integrating Indian MSMEs with global value chain and build global brands.

Improving competitiveness of MSMEs is another illustrative area around which the discussions were held. The group suggested points on what policy measures are required to provide MSMEs access to long term capital,  alternate funding and how can MSMEs be made part of the formal lending system based on  credit history mechanism.

Suggestions are sought on which manufacturing clusters should be formed and where and what are the key enablers for it.

Also, manufacturing for Industry 4.0- hardware and software was high on agenda during the discussion.

Industry body FISME, Federation of Indian Micro and Small & Medium Enterprises, is also a member of the group.

Making key suggestions, Anil Bhardwaj, Secretary General, FISME, said if MSMEs are expected to create jobs, MSME Ministry and DCMSME office has to be empowered both politically and institutionally.

He said there is a need for WTO Cell with research capabilities to influence FTAs, Competition Commission, Public Procurement Cell and Defence Cell.

He pointed that with the rise of WTO, almost 75 per cent of the global trade is increasingly routed through Global Value Chains.

The GVCs, he said requires a complete change of paradigm in which focus from ‘product’ export  to export of ‘tasks’ and ‘activities’ needs to be given. It requires imports to be predictable, friction less and competitive

Making suggestions on interventions for manufacturing, Bhardwaj stressed on improving finance to the MSME sector through an institutional mechanism for providing long term finance at low cost (substitute of SFCs); cooperatives & small banks; low cost of funds for MSMEs.

He said there is a need for dedicated SME funds; Bond market for MSME receivables; Facility for providing low cost non-fund based limits; Export Credit Facility for MSMEs.

Highlighting the importance of affordable industrial & commercial space, FISME had put up the idea of plug & play and flatted factories along DMIC and in all major clusters.

Calling for liberal support for access to Technical expertise, FISME Secretary General said Technology support in select horizontal areas like Automation, Packaging, Standards is the need of the hour.

Further, easing labour compliance costs: bringing cost of social security  to not more than 10% for MSMEs, war on reducing ‘cost of doing business’, doing away with unnecessary cost like Cost Accountant, compulsory CSR etc  were other key suggestions made by the industry body. (KNN Bureau)