Hyderabad: CII in partnership with Government of Telangana organised MSME summit to discuss on the business Opportunities for MSMEs and Strengthening International Linkages.
Speaking at the Inaugural Session of the MSME Summit organised by CII Telangana today, Jayesh Ranjan, IAS, Principal Secretary, Industries & Commerce and ITE&C departments, Government of Telangana urged to MSME’s to keep pace with the technological changes. He mentioned that while some of the SME’s companies are global players with best technologies and processes in place, there are others who need to adopt and imbibe the technology to remain relevant.
Elaborating about the Telangana government’s efforts to support MSMEs, Ranjan mentioned that the Telangana Industrial Health Clinic Ltd., (TIHCL), which was launched earlier this year, has been created to support the revival and growth of MSMEs in the state. The TIHL conducts diagnostic studies and also addresses issues like access to credit, delayed payments, market linkages etc. To support the MSMEs facing the issue of delayed payment, TIHCL is about to unveil a product on Bill discounting. This product will help MSMEs to solve working capital issues and help them in operational continuity. Highlighting the need for the MSMEs to be viable, Mr Rajan pointed out that MSMEs should not factor subsidy in their business plan.
The Government of Telangana has set up sub centers of the MSME Facilitation Council in three districts to support in MSME industries in the districts. Mr Ranjan also mentioned about the MSME Pakhwada, a fortnight long session where a group of experts visits districts and update industries about the various Government initiatives and Schemes and how they could benefit from them. He appealed the MSME companies to make use of the sessions.
Another initiative that could help MSMEs to be competitive is the Cluster approach; wherein an anchor industry will support SMEs around their facilities. He mentioned that the Government would be pleased to support many such clusters in Telangana.
Ms Katherine B. Hadda, Consul General of the United States of America, Hyderabad in her Special Address mentioned that both India & US share very fruitful trade relations. In the last decade the trade between the two countries has grown substantially. The governments of both the countries recognize and appreciate the role played by the MSMEs in fostering economic development.
Highlighting the role played by SMEs in US economy, Ms Hadda mentioned that in The United States there are more than 30 Million SMEs and they generate more than 50 % of the GDP of the country. In India too around 45% of GDP is from the MSMEs. Despite the difference in scales, the challenges faced by the SMEs in both the countries are similar like availability of finance, market linkages etc.
The Commercial Service Department of the United States had been created to support the SMEs establish market linkages with the other countries of the world. It also provides market intelligence and due diligence. The Commercial Service Department has been working with counterparts in India to develop policies and practices that can further improve the ease of doing business so as to better support SMEs. Stressing on the need for SMEs to be competitive, Ms Hadda mentioned that Innovators must ensure that their Intellectual Property is protected and focus on improving their supply Chain management.
Delivering his address at the Inaugural Session, V Ramesh, General Manager, State Bank of India elaborated about the various schemes of the SBI like MUDRA Scheme, CGTMSE which provides loans from 10 Lakhs to 2 crores without collaterals to support MSMEs. There are also various tailor made schemes available for the SME industries.
Highlighting the various innovative methods adopted by the bank to support SMEs, Mr Ramesh mentioned that SBI is setting up the Incub Outlet in Hyderabad. It is an incubation center to support startups. This center will support startups with legal and financial assistance. Another initiative rolled up by SBI is to support FinTech Start-ups by providing space and financial support. SBI will provide upto 200 crores seed money to support such entrepreneurs.
In his theme address, Mr AVS Reddy, Convenor, CII Telangana MSME & International Linkages Panel & Managing Director, Appidi Technologies Pvt Ltd highlighted some of the inspiring statistics of India’s MSME sector. The sector is the second highest employment generator in the country after the Agri sector and contributes to about 40% of the country’s exports. He emphasized on the fact that the success of MSMEs is key to the growth of the nation.
Mentioning about the challenges faced by the MSME industries, Mr Reddy spoke about the need of technological up-gradation, availability of funding and market linkage opportunities. Speaking about the need for the SMEs to compete in global market, Mr Reddy said, “In spite of Government’s strong focus on SMEs and exports, only less than 1% of total 65 Million Indian SMEs currently participates in Global Trade which is far less than the figures of other countries. Technology is the biggest enabler and will help the SMEs to be competitive in domestic and international market.
Delivering his Welcome address, Mr D Raju, Vice Chairman, CII Telangana & Managing Director, Kirby Building Systems India Pvt Ltd mentioned that the MSME sector is expected to play a significant role in the emergence of Indian economy. It can nurture and support the development of new age entrepreneurs who have the potential to create global competitive businesses from India. Make in India with Zero Defect and Zero Effect is the biggest and significant opportunity for the MSME sector. At the same time the SME sector should leverage the Digital India revolution.
Speaking about the Conference Mr Raju mentioned that the Daylong Conference will bring together the experts to deliberate on effective models & strategies of technology up-gradation and digital marketing, discuss on the issues and challenges faced by MSMES; Create awareness about the opportunities present in international markets and defence and aerospace sectors.
Mr K Srinivas, Managing Director, Eqic Dies & Moulds Engineers delivered the concluding remarks. The Conference was attended by over 170 delegates representing Industry, Academia, Startups among others. (NSS)
