MEASURES INITIATED TO HELP SSIs BECOME GLOBALLY COMPETITIVE: RUDY
The
government has put in place several measures to help SSIs (small
scale industries) become globally competitive. These include special
focus on areas such as technology upgradation, infrastructure
assistance through cluster approach, timely availability of credit,
adoption of modern management practices, use of electronic infrastructure
and other IT applications to face the emerging challenges of trade
liberalisation. A comprehensive policy package for the development
of SSIs has been announced on 30th August, 2000. The
policy package will enhance the competitiveness of SSIs through
easier access to credit, availability of collateral free composite
loan up to Rs.25 lakh, capital subsidy for technology upgradation
and improved infrastructure. This was stated by Shri Rajiv Pratap
Rudy, Minister of State for Commerce & Industry, in a written
reply in the Lok Sabha today.
Import
restrictions have been removed in line with the economic liberalisation
policy being followed since 1991 and also in accordance with country’s
commitment to multilateral trade regime. While the removal of
QRs have exposed the SSIs to greater competition, there has not
been any surge in import as a consequence of this step. Government
is absolutely determined to ensure through appropriate use of
tariff and other mechanisms, including imposition of anti-dumping
duty, safeguard duties, that imports do not cause any serious
detriment or injury to the domestic industry due to import restrictions
removal. Towards that end, government has increased duties on
a number of items where a surge in imports was noticed or apprehended.
As
reported by the PHD Chamber of Commerce & Industry (PHDCCI),
they have conducted a study entitled "Post-QR Regime: Making Small
Scale Industry WTO-Compatible" in which an 11-point agenda has
been mooted for making the SSIs competitive. The study advises
that the SSIs should: make efforts to match prices of domestic
products with world prices by adopting waste reducing techniques,
making improvements in designs, use of better materials, improved
inventory management etc.; innovate/design new products and upgrade
product quality to ensure that the consumers are not diverted
towards imported products; adopt international/Indian product
standards; ensure better package for domestic and export markets;
ensure compliance with pre-determined delivery schedules; obtain
patents for their products; expand the industrial units vertically
by installing modern machinery rather than starting another small
unit; explore areas for ancillarisation and develop linkages with
other enterprises; restructure management and marketing practices;
look for collaborations and tie-ups with foreign firms, which
will take care of export marketing through their established channels
and provide financial support; and improve productivity of labour.
