Government schemes for SMEs fail to click: FICCI study

The government's initiatives aimed at alleviating the hardships of the small and medium enterprises (SMEs) seems to have floundered with around 94 per cent of the small and medium enterprises in the export sector having been 'severely to moderately' hit by the economic downturn, a survey by the Federation of Indian Chambers of Commerce and Industry showed.

Around 5 per cent of the respondents said they have not been affected by the downturn.

The participating companies reported that their major losses are from the US and European markets. They say they are now struggling to find new markets for their products.

A survey of 116 small and medium units conducted by FICCI has thrown up the findings about the state of the SMEs in the slowdown.

The survey suggests that units are showing some resilience at the firm level with hopes of recovery, although their one-point demand is for better financial accommodation by banks at lower interest rates.

The survey has found that the interest subvention announced for SME exporters has failed to reach the intended beneficiaries at the ground level.

The survey points out that knowledge among the SMEs about the incentive schemes launched by the government,  remains limited and an action programme to better communicate government initiatives is the need of the hour.