Seminar on "Economic Crisis & Enterprise Security" and Release of India MSME Report 2013

Seminar on "Economic Crisis & Enterprise Security" and Release of India MSME Report 2013 held at SRI Auditorium, Shriram Institute for Industrial Research, 19, University Road, Delhi-110007, organised by International Society for Small and Medium Enterprises (ISSME), jointly with Institute of Small Enterprises and Development (ISED) and Shriram Institute - Technology Business Incubator (SRI-TBI). End Quote

(1888PressRelease) December 17, 2013 - New Delhi India - Micro, small and medium enterprises (MSMEs), which serve both economic and social objectives, are in a serious crisis putting their very survival in question. Labour is no more affordable and available as per the requirement. Raw materials are also getting more expensive on a day to day basis. Manufacturing sector, which is very important for job creation, is badly affected due to switching over by many of the manufacturing entrepreneurs to services sector, as traders, middlemen and many other seasonal activities from their original business of good production. Whereas many welfare-oriented policies introduced by the Central Government contributed to a crisis in our entrepreneurial system, which is more of a cultural crisis.

There is a severe Confidence Crisis among the entrepreneurs and, to a certain extent, among other stakeholders. The loss of confidence, on the one hand, holds back any initiative for action, particularly growth- oriented action, and breeds complacency and artificial satisfaction with the status quo ante. Governments and other providers of development assistance need to be clear as to the exact needs and the kind, quality, quantum and time-line of the assistance to be provided. Otherwise, public programmes for MSME development will lose their direction and focus.

These were some of the issues of MSMEs discussed and recommendations emerged during the Seminar on "Economic Crisis & Enterprise Security" and Release of India MSME Report 2013 held at SRI Auditorium, Shriram Institute for Industrial Research, 19, University Road, Delhi-110007, organised by International Society for Small and Medium Enterprises (ISSME), jointly with Institute of Small Enterprises and Development (ISED) and Shriram Institute - Technology Business Incubator (SRI-TBI).

The Seminar was attended by around 70 participants including SME leaders, policy makers, trade & industry associations, international agencies/ organizations, academics, SME practitioners, banks and financial institutions, NGOs working for MSMEs, informal sector enterprises & associations, entrepreneurs, media persons, etc.

Mr. G Sajeevan, Deputy Director General, Office of Development Commissioner (MSME) was the Chief Guest of the Seminar. Other speakers and dignitaries at the seminar were: Mr. Sudarshan Sareen, Vice President, ISSME & Member, Prime Minister's Council on MSMEs; Dr. K M Chako, Director, Shriram Institute for Industrial Research; Dr. Laxman Prasd, Group Director (R&D), Raj Kumar Goel Group of Institutions; Dr. P M Mathew, Director, Institute of Small Enterprises and Development, Cochin; Dr. A K Tyagi, Senior Assistant Director, Shriram Institute for Industrial Research; and ISSME Secretary General Mr. Sunil Sharma. While Mr. Sudarshan Sareen chaired the Seminar, Mr. Sharma moderated the Seminar.

The seminar was organized on the basis of the studies and research conducted by ISED and India MSME Report 2013, which is a comprehensive annual report brought out by ISED on Indian MSME sector. The 2013 Report - the 17th in series - was released by Mr. Sajeevan during the Seminar. While the National Food Security Act has become a reality, the demands for such a legislation has been argued out in the case of MSMEs. The Report argues that Right to Enterprise is part of the Right to Work. The 'Right to work' and 'Right to Food' are two rights protected through the Directive Principles of the Constitution. The focal theme of the ISED Report this year is the 'Health status of MSMEs' in the country.

Steps such as a ten point acting strategy announced recently by Finance Minister Mr. Chidambaram in order to combat the current crisis in the Indian economy, and the Prime Minister's affirmation to his determination to revive the ailing economy, are not sufficient to build up confidence in the economy, says the India MSME 2013 Report. Falling investment confidence is the greatest malaise in a recession, and fighting this is the first step in a contra cyclical policy.

As per the Report, MSMEs are emerging as the recession pain- killer of economic crisis, based on the experience of a number of countries including Greece, Spain, Portugal, Luxemburg and Italy. Even Germany, the country that is relatively well-off in Europe, supports MSME programmes in the badly affected countries. The Keynesian prescription of digging earthen holes and filling them up has taken an MSME guise in 2013, going by the very recent massive relief package offered by China to its MSMEs. The Chinese MSMEs that become increasingly cost competitive are going to cause a serious threat to their Indian counterparts. In such special circumstances, there is no other go for India: there is imperative need to announce a special and sizable relief package to MSMEs in the country and win their confidence. Post-recession adjustments are much quicker in the case of MSMEs than for the corporate sector. And, therefore, this is the right time for government of India to act, the Report says.

The Association Partners for this seminar were All India Confederation of Small and Micro Industries Associations (AICOSMIA), All India Plastic Industries Association (AIPIA), Network of ICT Entrepreneurs and Enterprises (NITEE), All India Kabadi Mazdoor Mahasangh (AIKMM) and Federation of Rickshaw Pullers of India (FoRPI). Raj Kumar Goel Institute of Technology, Ghaziabad (RKGIT) was the Knowledge Partner; Dex Consulting and Search Value were the SME Business Partners; daijiworld.com was the media partner and SME Voice (monthly newsmagazine) & Global SME Watch (fortnightly bulletin) were the Print Partners of this event. ISSME expresses its deep sense of appreciation, and is indebted to the co-organizers and all the partners of this event for their unstinted support and cooperation.

For further details, please email at: pr ( @ ) issme dot org.

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