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Annual Report 2011-12
:: PRESS RELEASES
Exim Bank Study on Micro, Small and Medium Enterprises Released at the Commonwealth Conference on Small Business Competitiveness Development Programme
Release of Exim Bank's publication on "MSMEs and Globalisation: Analysis of Institutional Support Systems in India and in Select Countries" at the hands of His Excellency Dr. A.P.J. Abdul Kalam, Former President of India, at the 9th Commonwealth-India SME Competitiveness Development Programme 2009 held in Bangalore on June 21, 2009.
Exim Bank's study on 'MSMEs and Globalisation' was released at the hands of Dr. A P J Abdul Kalam, Former President of India, at the inaugural function of the Commonwealth-India Small Business Competitiveness Development Programme, at Bangalore on June 21, 2009. The study analyses key features of institutional support systems in India and in select countries to understand the diverse areas of MSME strategies, covering financing, technology development, skill development, and market information, aimed at facilitating the globalisation efforts of MSMEs.
Speaking on the occasion, Mr. T C Venkat Subramanian, Chairman and Managing Director of Exim Bank of India, opined that non-financial parameters and competencies should also be considered while evaluating proposals from Micro, Small and Medium Enterprise (MSME) units. In this context, Mr. Venkat Subramanian highlighted the joint efforts of Exim Bank of India and International Trade Centre, an UN organisation based in Geneva, in developing and implementing an IT based tool 'loan.com', as a pilot project in India, to evaluate the credit proposals of MSMEs.
Analysing the institutional support systems in India and in select countries, the Exim Bank study has observed that there is a tendency of maintaining a 'decentralised arrangement' for development of MSMEs in most of the countries, including India; however, it is essential to promote synergy with regard to institutions and support programmes, in order to achieve desired outcomes. It is also important for MSMEs to become a part of a global network of large companies, especially in the technology oriented sectors; thus, there is a greater role for Government, large corporates including multinational corporations, donor organizations, and other such intermediaries, to inculcate capacity building programmes for MSMEs, and help them in their globalisation efforts.
The study recognizes, based on the approaches adopted in various countries, that MSMEs can achieve high levels of competitiveness if they work in a cluster environment ensuring complementarities, common activities, collective goods and institutional stability. It is also recognised that the business incubation and support network for MSME sector needs to be well-structured, particularly focussing on target sectors and special geographies. One of the neglected, yet crucial, areas is assisting troubled MSMEs to turnaround, and to save them from failures. Business turnaround profession, especially for the MSME sector, may be encouraged through institutional framework in India. Coordinated measures are also required to be formulated, and implemented, to stimulate MSME start-ups, targeting young entrepreneurs, women entrepreneurs, focussing on priority sectors. There is also a need for a focussed institution encouraging R&D activities in MSME sector in a coordinated manner, which may identify thrust areas for research, new areas for technology application, opportunities for commercialization of R&D, and hand-holding of MSMEs in their R&D intensification. Apart from these strategies, the study proposes that the Government may also link up its MSME strategy with the negotiations under Regional Trading Arrangements (RTAs) to enhance cross-country learnings and experiences.
For further information, please contact
Mr. S. Prahalathan,
Research & Planning Group,
Export-Import Bank of India,
Centre One Building, Floor 21,
World Trade Centre Complex, Cuffe Parade,
Mumbai 400 005.
Telephone: (022) : 2217 2301,
Fax::(022) 22180743 .