Confederation of Indian Industry (CII), in association with IIM Kolkata, IIT Chennai and Japanese consultant Shobi Shiba would be launching a visionary Small and Medium Enterprise (SME) programme this year with the goal of creating a model visionary SME in the country.
Speaking on the sidelines of an interactive seminar organised by CII on ‘Alternative Avenues to SME financing’, Ramesh Datla, chairman of the CII National MSME Council, said “The three year long visionary SME program was identified under CII's 10 point agenda this year”.
Around 10-15 SMEs across the country would be identified and compared to global benchmarks.
The gap identified would then be addressed by the industry with CII help.
The aim would be to raise Indian SMEs to global standards by creating model SMEs.
By September-end, the 15 SMEs would be identified and the programme rolled out tentatively.
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Speaking on the issue of SME financing, Datla highlighted the emergence of risk capital funds and equity funds for SME financing compared to conventional borrowing, adding that there is a need to create more alternative SME financing techniques for sustainable double digit growth.
In order give this sector the necessary thrust, CII placed several other proposals to the ministry of Micro and Medium Enterprises and Finance ministry.
It said an SME exchange with appropriate framework was needed, besides primary and secondary markets for SME, simplification of NRI investment policy and the Foreign Exchange Management Act, implementation of the MSMED Act and lobbying for the enactment of Limited Liability Partnership Act (LLP Act).
He emphasised the need for increased FDI participation in SME sector through removal of the 24 per cent cap on FDI investment in companies according to present policy.
CII forwarded these proposals to respective ministries last year and was awaiting a response, said Datla.
CII would soon launch a website for all SME related issues this fiscal.