Modernised SSIs key to Gujarat's growth: Anil Patel

The minister of state for industries and mines Anil Patel said small-scale industries in Surat and the south Gujarat region would have to play an important role if the state has to achieve an annual growth rate of 10.2 per cent.

Patel was speaking at a small-scale industries conference organised by the Southern Gujarat Chamber of Commerce and Industry and the Federation of Indian Chambers of Commerce and Industry.

The minister said, "The Planning Commission has set a target growth rate of 8 per cent for the country till 2020, but the targeted growth rate for Gujarat has been set at 10.2 per cent. Small-scale industries of Surat will play a crucial role in determining whether we can achieve this growth rate."

Patel said, "The number of small-scale industries in Gujarat has doubled in the last decade. These industries contribute 18 per cent to capital investments and 14 per cent to the industrial production of the state. The state government wants speedy development of small-scale industries, which will be possible only by technology upgradation."

Patel advised industrialists to spend a part of their profit in research and development, diversification and modernisation as this is the only way industries can move ahead.

The minister said the state government was preparing a resolution for cluster development and technology upgradation of small scale industries which would be announced shortly.

G S P Sinha, co-chairman, FICCI small and medium enterprises committee, New Delhi, said, "Small and medium enterprises play an important role in any developed or developing economy and India is no exception. There are 33 lakh small-scale industries in the country that produce goods worth Rs 6,45,496 crore and provide employment to 186 lakh people. These industries contribute around 35 per cent to the country's total exports."

"This is an era of globalisation and industries will face stiff competition, especially in the post-WTO period.

"There will be a lot of challenges, but this will also provide several opportunities and we need to be ready for this," Sinha said.

The conference was attended by over 500 local industrialists and businessmen who raised issues such as abolition of CENVAT and the need to curb increasing instances of textile firms going defunct.

In response, the industries minister assured the businessmen that the government would take all possible steps in the interest of the local industry.