The domestic Micro, Small and Medium Enterprises (MSME) sector, which account for about 45 per cent of manufacturing and a third of exports, is in dire need of mentoring, funding and marketing support to sustain.
The sector, which greatly helped India stand up to the challenges of global slowdown, is facing tough times due to increased competition, especially emanating from China.
The participants in a national MSME convention here last evening said the sector over the last 60 years had contributed greatly in production, employment generation, exports and general economic development of the country.
There are an estimated 28 million MSMEs in India employing 66 million people and contributing an eighth to the Gross Domestic Product (GDP). However, only about 6 per cent of the units are registered, while 95 per cent of them are micro enterprises.
The convention was organised by Indian Industries Association (IIA) and ex President of India Bharat Ratna A P J Abdul Kalam was the chief guest.
In his keynote, Kalam said the MSMEs should capitalise on its two biggest strengths – location and scale independent. He stressed the revival of 85,000 sick units in the country. The export from MSMEs needed to be doubled in the next five years, if the country has to become a developed economy, he said.
“Today, the sector is facing several hurdles including cost of production, technology, cheap imports and global competition,” National Small Industries Corporation Chairman H P Kumar said.