Register to Subscribe



Home arrow News arrow FYI arrow FICCI recommends strategy for SME development
FICCI recommends strategy for SME development Print E-mail
Written by Arjun   
Tuesday, 26 June 2007

 FICCI has recommended a five-point strategy to boost development of SMEs through the cluster-based approach.

These points are technology and quality upgrade, low-cost financing, linkages between Indian and overseas SME clusters, marketing and export promotion and training, and skills upgrade.

 New Delhi :  Indian small and medium enterprises (SMEs) are poised for growth like never before and, in order to upgrade their quality further, a cluster-based approach is the best solution, says a leading industry chamber.

Cluster approach for the development of SMEs would push them towards a higher growth trajectory, said research conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI).

SMEs have not been able to achieve desirable results due to lack of an institutional synergy, scarcity of committed NGOs and industry associations and lack of good consultants and service providers, it said. The body has suggested five different ways in which SMEs can achieve their target and developmental goals.

 According to FICCI, Indian SMEs can compete with international standards if certain technological issues can be addressed such as arranging consultancy services on a continuous basis and provision of financial and other inputs to bridge the gap.

 Involvement of the private sector also needs to facilitated in the various developmental programmes of the SMEs. 

  It further said cluster profiling and risk assessment needed to be extended to more clusters. The availability of finances at a reasonable cost is the core issue in the context of modernisation of SMEs and more so in the clusters.

 'The high cost of funding is a major constraint for SMEs and inhibits them to make investments for technology upgradation. Therefore, the government needs to make available low-cost funds for effecting modernisation of clusters,' FICCI said.

 Among its five-point strategy for the SME development, FICCI has also suggested a cluster-to-cluster cooperation that would enable them in strengthening their exports through the supply of goods and components to overseas counterpart clusters where the factors of production are favourable to Indian conditions.

 FICCI has also asked the SMEs to focus on networking for gaining access to new markets and information on new products and technologies, which may be difficult for them to achieve on their own.

 It has also suggested large-scale participation by SMEs in business delegations and trade fairs to gather market intelligence.

 SMEs also face huge manpower crunch in terms of attracting the best of talent in the market and providing them with quality training. But in a cluster-based strategy it is easier to impart training, the study said. 

 
More recent
Earlier on
< Prev   Next >

Sponsors

Mazak - The world's largest machine tool builder
JYOTI - India's most dynamic machine builder
TaeguTec - Cost effective tooling solutions
Advertisement

<< SHARE

Social

AD

Subscribe

Subscribe to MACHINIST by Email

Search

 
RSS 1.0
© 2014 MACHINIST
This site is best viewed with Firefox 2.0 or higher at a minimum screen resolution of 1024x768