Ecosystem has unchanged for the SMEs: KASSIA

Bengaluru, July 16 (KNN) The ecosystem in which the Small and Medium Enterprises are working has more or less unchanged, said A. Padmanabha, President of Karnataka Small Scale Industries Association (KASSIA).

He was addressing the media persons here.

He further said the Micro and Small Industry continues to face serious challenges in the context of globalization with India opening up to the world.  The nature of competition and the complexities of doing business has become more challenging.

“We have been thrown into the arena of the global markets, the ground from which we operate remains extremely shaky.  There is no level playing field when it comes to competing with our peers from the rest of the world who happen to be from better managed economies,  backed by  world class infrastructure, finance and operating conditions”, he added.

Talking about the schemes formulated by the state and central governments, he said that there are of course many schemes that the Governments both Central and State have formulated for the benefit of SMEs.  However the problem remains one of implementation with most of the schemes remaining on paper without reaching the intended target or the beneficiaries.‎

Demanding a separate industrial policy for the SMEs in the state, Padmanabha said considering the issues at stake and  in the interest of survival of the SMEs,  is firmly  of the view that  SMEs require a separate industrial policy in the State and a special dispensation considering the issues affecting the sector and the complexities and challenges faced by the sector in an open and globalised economy.   

Commenting on skilled labour issues, he pointed that the SMEs are hampered due to lack of skilled labour. 

President said that red tapism and regulatory interference of the government authorities in the functioning of micro and small enterprises is highly demoralizing to this sector. (KNN Bureau)