Technology used by MSMEs generally a major cause of poor competitiveness: Giriraj Singh

New Delhi, May 6 (KNN) The technology used by MSME is generally a major cause of poor competitiveness as many MSME units are using outdated/conventional technologies owing to lack of sufficient finance, lack of access to modern technology, absence of in-house research & development etc, said Minister of State for MSME Giriraj Singh.

In a written reply to the Parliament, the Minister said there is an urgent need to develop appropriate technologies for various manufacturing processes to bring down cost which is a major factor in global competitiveness. 

To give a fillip to the development of modern technology, Ministry of MSME has established 18 Technology Centres (Tool Rooms and Technology Development Centres) spread across the country.

It has also started Technology Centre Systems Programme (TCSP) for setting up of 15 new Technology Centres (TCs) and up-gradation of existing TCs for technological support to MSMEs. 

In order to enhance the global competitiveness of the Indian Micro, Small and Medium Enterprises (MSMEs) sector, the MSME Ministry is implementing Credit Linked Capital Subsidy Scheme (CLCSS) under which MSE units are given 15% capital subsidy on institutional credit up to Rs. 1 crore to acquire approved machinery/technology, he said.

Assistance under National Manufacturing Competitiveness Programme (NMCP) is also being provided to encourage MSEs through different components like Technology and Quality Up-gradation Programme (TEQUP), Design Clinic Scheme, Lean Manufacturing Competitiveness Scheme, Quality Management System & Quality Technology Tools (QMS/QTT) Schemes and Intellectual Property Rights (IPR) Scheme etc.