'Small industries should adapt to changes'

In the WTO era the small and medium industries should adapt to the changing scenario if they want to survive and grow, state industries minister Anil Patel said in Ahmedabad on Friday.

Speaking at a meeting organised by the Gujarat Chamber of Commerce and Industry and Small Industrial Development Bank of India (Sidbi), Patel said that small industries need to acquaint themselves with the changed world order of trade and must study the various agreements under WTO and their possible impact on the industries.

"Small and medium industries will need to make structural adjustments in their working. Small units will not be able to work in isolation as trade is become increasingly global. They will have to work in tandem with international trade rules," Anil Patel said.

Citing the example of China, the minister said that goods produced there are cheaper because of a stiff competition in the manufacturing sector.

Indian manufacturers will have to cut costs in order to meet competition from abroad, he felt.

He said that there was a need to change the definition of small industries and added that the central government was considering the proposal to change the investment limit for small industries from the existing Rs 1 crore to Rs 3 crore.

Shreya Pandya , GCCI president said that government should take steps that will benefit the small scale sector.

He said that the government should abolish octroi in municipal corporation limits, reduce power rates, increase excise exemptions and spread benefits of technology funds to other sectors as well.

Pandya added that there are 32 lakh small scale units in the country, contributing to 40 per cent of the total production.

As many as 18 million persons are employed in this sector. The small scale sector has a 36 per cent share in exports.