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MSMEs need clear rules and policies to become competitive

New Delhi, Apr 2 (KNN) Special Commissioner of Industries, NCT Delhi, Rajiv Kale today said the rules and policies governing micro, small and medium enterprises (MSMEs) which are sketchy at present should be defined for the sector to grow and gain competitiveness.

“The time had come to move from regulatory legislation to a progressive mindset,” he said during a FICCI-Confederation of Micro, Small and Medium Enterprises (CMSME) seminar on 'MSME Prosperity' held here.

The seminar was organised with a view to empower the country’s MSMEs and build their competitiveness.

Kale urged that the State Level Advisory Board to expand its scope and focus on a wide range of issues; pointing to the need to introduce the provision of constituting sub-committees under the MSMED Act.

On ease of doing business, Kale said that it was very difficult for the prospective entrepreneurs to enter the business. He suggested that FICCI should walk with the prospective entrepreneurs and experience the journey with them and understand what impacts and hinders their progress.

FICCI-CMSME President and Hindustan Tin Works Private Limited MD Sanjay Bhatia said that they needed to work towards removing the bottlenecks inhibiting the growth of MSMEs so as to enable the sector to respond effectively to challenges. Providing a favourable ecosystem, he said was a necessary part of enabling growth of MSME sector. This in turn required reliable partners who could provide these enterprises with requisite help in scaling up their business and making them competitive for entry into the global value chain.

Also speaking on the occasion, Zonal General Manager-NCR, National Small Industries Corporation (NSIC), Jasbir Singh,highlighted the initiatives undertaken by NSIC. “One of the most important initiatives was that as a nodal agency, NSIC operates a Single Point Registration Scheme under the Government Purchase Programme, wherein the registered Small Scale Industries (SSI) units get purchase preference in government purchase programme, exemption from payment of Earnest Money Deposit and other such benefits,” he said.

Offering his remarks, Vice-President, FICCI CMSME and Founder and CEO, Power2 SME, R Narayan said that the role of the MSME sector as a development partner of Government in India faces fundamental challenges, including insufficient infrastructure and inadequate access to power and financing.

Furthermore, the sector was largely dominated by informal sector. It was imperative for government-led sector development programmes to give a high priority to the development of MSMEs, and promote entrepreneurship and ownership of enterprises, especially among first generation entrepreneurs, he said.