dblogonew02.gif (3810 bytes) Need to check out original corporate information? Visit www.prdomain.com  
a division of The Information Company Private Limited
information is money
home | advertise | partnership | site map
 
 
  finance > banks > Exim Bank


SME development requires cross-cutting strategy: EXIM Bank
Our Corporate Bureau
21 November 2005


Mumbai: Exim Bank's latest study titled Export Performance of Small and Medium Enterprises in India finds that SME development requires cross-cutting strategies that touch upon many areas, such as conducive policies, simplified legal and regulatory framework, good governance, abundant and accessible finance, suitable infrastructure, entrepreneurial skill development, and competitive environment.

The study was released by minister of small scale industries Mahavir Prasad, at the third Commonwealth-India small business competitiveness development programme, in New Delhi yesterday, who presented the first copy to George Saibel, director, special advisory servicesd, Commonwealth secretariat.

T C Venkat Subramanian, chairman and managing director, Export-Import Bank of India said that SME competitiveness could be enhanced through networking and sharing of experiences from successful firms. The networking could be done by way of transfer of technology, joint ventures, marketing arrangements, or even outsourcing. Such networking approach enables SMEs to overcome many of the limitations of size, efficiency and quality, he added.

The study analysed 12 SSI intensive sectors — engineering goods, chemicals and allied products, basic chemicals and pharmaceutical products, plastic products, leather products, processed food products, marine products, woolen garments and knitwear, sports goods, readymade garments, rayon and synthetic products, and processed tobacco and bidi.

The study noted that while these sectors have improved their cumulative share in India's total exports (from 51.6 per cent in 1991-92 to 55.5 per cent in 2002-03), the export share of SSI units in these sectors have come down from 58.4 per cent in 1991-92 to 52.4 per cent in 2002-03. The study remarked that this could be a result of liberalisation, which could have facilitated more and more SSI units to increase their capital investment in order to emerge as global players.

The study reviewed the performance of medium enterprises using two definitions, viz., based on capital investment (between Rs1 to Rs10 crore), as defined by the Reserve Bank of India, and based on sales turnover of units up to Rs75 crore. The analysis revealed that sectors like food and beverages, chemicals, auto-components, machinery, electronics, metals, castings and forgings have witnessed increasing export orientation trend over the last decade.

The study suggested that small and medium scale enterprises could be defined as one entity for policy purposes, with the objective of facilitating higher investment and thereby encouraging the technology upgradation. The study added that SMEs should be encouraged to work in cluster environment ensuring complementarities, common send this article to a friend activities, collective goods and institutional stability. This strategy requires sector specific actions, aimed at increasing the competitiveness of the clusters, promoting networks and cooperation amongst firms.

Google
 
Web www.domain-b.com
www.prdomain.com
 

 

This site is best viewed with an 800 x 600 monitor resolution    |    Copyright © 1999-2005 The Information Company Private Limited. All rights reserved.

SME development requires cross-cutting strategy: EXIM Bank