Empowering MSMEs with News & Insights

MSMEs have low global presence: survey

Updated: May 13, 2013 03:08:54pm
image
New Delhi, May 13 (KNN)  Micro, small and medium enterprises have very low international presence with only 39 per cent of the total respondents surveyed exporting to other countries or having operations in other countries, said an assessment by FICCI and accounting firm Grant Thornton.
 
“The survey results based on responses from over 100 MSMEs shows that only 39 per cent of the respondents were exporting to other countries or had operations in other countries besides India. There were also respondents who were only outsourcing some of their work to other countries, whereas a majority of them did not have any international presence,” said the survey.
 
However it said that Indian industry at large has been able to invest in the right channels like distribution networks, product development through research and development and new technologies to be able to exploit opportunities offered by the global value chain.
 
The survey called the present scenario an appropriate time for companies looking for expansion.
 
“With an increasing intent of Indian industries to look at expansion opportunities in the near future and availability of skill and capital with them, it presents to them an ideal time for greater participation into the global value chain and contribute to the value addition activities being carried out in the value chains,” it said.
 
The survey titled ‘Integrating MSMEs with the global value chain’ pointed to the fact that industries were being hindered by a variety of factors, the primary factor being difficulty in establishing contacts with global players.
 
Meanwhile, Indian organizations, felt that the compliance procedures of global organisations were too stringent and economically non-viable for them.
 
The study called for a greater role of the government, as regulatory compliances and availability of finance have been identified as the primary constraint being faced by the Indian industry.
 
“Only 31 per cent of the respondents believed that the government was playing a key role in enhancing competitiveness in their business areas, highlighting the need for the government to introduce policies and procedures to address this gap to foster further growth,” it said.
 
Despite the lacuna what encourages global players to partner with Indian organisations, products and services offered by Indian organisations to their global partners have been rated very highly by the global players.
 
Indian organisations also fare very well on the ethical trading practices parameter which is increasingly gaining importance in the international trade arena.
 
The sector contributes 36 per cent of the total value of exports of the country and employs over 80 million people. The contribution of the MSME sector to the output of the country is 40 per cent and to the GDP is over 8 per cent. (KNN)

COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *