empowering indian smes for 2020

8/17/2019 Empowering Indian SMEs for 2020

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Conclave on

Empowering Indian SMEs for 2020 -

Opportunities and ChallengesGovernment of Maharashtra

Supported by

Principal Sponsor

GLOBALABSOLUTE

Inauguration of the Conclave

Eminent Speakers

Mr. Montek Singh Ahluwalia Dr. R. A.Mashelkar Mr. Anil Deshmukh Mr. Rajinder Singh

Mr. Jignesh Shah Ms. Malini Shankar

Mr. Rasesh Kanakia Mr. Chandrakant SalunkheMr.Maheshkumar

--

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- Deputy Chairman, Planning Commission, Govt. of India inaugurating the conclave in the presence of - President,GlobalResearchAlliance, Hon’ble Minister for Public Works (Public Undertakings),Maharashtra, -Chairman &CEO, Global

Absolute, Chairman & Group CEO, Financial Technologies (India) Limited, - Development Commissioner - Industries,

Government of Maharashtra, - Chairman, Kanakia Group, President, IITC-INDIA & SME Chamber of India and- General Secretary, IITC-INDIA

Organised on 23rd August 2008, Hotel Grand Hyatt, Mumbai

Mr. Montek Singh AhluwaliaDeputy Chairman, Planning Commission,

Government of India

Dr. R. A. Mashelkar President

Global Research Alliance

Mr. Jignesh ShahChairman & Group CEO

Financial Technologies (India) Limited

Mr. Anil DeshmukhHon’ble Minister for Public Works

(Public Undertakings), Maharashtra

Mr. Rajinder Singh

Chairman & CEOGlobal Absolute Group

Mr. Chandrakant Salunkhe

President,SME Chamber of India

IITC-INDIA &

Ms. Malini Shankar

Development Commissioner - Industries,Government of Maharashtra

Mr. Rasesh Kanakia

ChairmanKanakia Group

Newsletter - August 2008

NEWSLETTER

www.iitcindia.com | www.smechamberofindia.com

Silver Sponsors Media Partner Supported by Event Manager

Macro Corporate Services Pvt. Ltd.

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IITC-INDIA

IndiaInternational Trade Centre(IITC-INDIA)

Organised by

S M A L L

& M

E D I U

M B USIN E S S D

E V E L O

P M E N T

Chamber

of INDIA

Small & Medium BusinessDevelopment Chamber of India


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Speech by:- Mr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, Govt. of India

In both industry and services, a very large percentage of the enterprises are in the SME Sector. Secondly a

very large percentage of the employment has also been generated by the SME Sector and finally their

contribution toexports isalso very high.

It isnot possible to think of a healthy economyif we don't have a vibrant andhealthyenvironment forthe Small

and Medium Enterprises group. That is being true of all countries. It is true of the dynamic economies. It is a

very important sector and the Government is paying a lot more attention on what can be done to address the

problems of theSMESector.

SMEs have many problems. The major ones are infrastructure, credit - not only bank credit but also access to capital, issues relating to skill

development in the sense of availability of skills, technology upgradation, human relation and market development. I think these are all areas in

which theGovernmentin thecourseof 11thplan areformulatingand implementing severalmeasures.

The one most important thing to be recognised by us is the deficiency of infrastructure, which are pretty widespread in India. The deficiencies of

infrastructure operate in a very asymmetric way. Large organisations can insulate themselves from infrastructure deficiencies because they are

large enough to create their own infrastructure. Small enterprises have to rely on the general level of infrastructure or general quality of

infrastructure and the fact is that thegeneralqualityof infrastructure offer constraints especially to theSMESector. So quite honestly my advice to

theSMEsector is to insistthe concernedauthorities to improve the infrastructure facilities.

Again among the infrastructure, the availability of uninterrupted power supply is of prime importance. It is observed that in states were more

emphasis is laid on power, there is improvement in the industrialization, promotion of SME Sector and increased employment. The demand for

energy isgoing to increase everyyear.

During the10th plan the targetfor additional capacity power generation wasabout 40,000 MW, while in the 11th Plan it is 78000 MW. So there is a

very big change in what I would call a pipe line activity as faras power sector is concerned. But something must come out of thepipe line.Frankly,

thatiswhattheCentralGovernmentandthePrivateSectorandtheStateSectorhavetomakesure.

On thefinancialsidealso theIndianfinancialsystem hasbecomemore sophisticatedover the last 10years so.Not only thebanks butalso markets

are developed and there are new products in the market today like Venture Capital and Private Equity operation including investors from abroadgettingintothissectorwhichwasnotthecaseearlier.

Finally a few words on the issue of skill development. I think a really successful SME Sector would flourish most in an environment that generates

sufficient supplyof skilled labour. Once again large cooperation cando their own training inskill development.A small organisation relieson ample

availabilityof skilled labour and I thinkthisis a major areawhere the Government hasto doa lot.

The Government has announced recently aboutsetting up of a skill developmentcorporation, which will be putin place very shortly and this is the

corporation to which the Government will contribute money, would invite contribution from theprivatesector andit will be run by a CEO as if it was

private Corporation and not like a Government body. The idea is to invite representatives of Associations representing 10 manufacturing sectors

and10service sectors whichwebelieve havea tremendousscopeforemployment generation.

I appreciate the initiative taken by Mr. Salunkhe for organising today's Conclave, which is the need of the hour since SMEs are playing a vital role

forthe nationdevelopment,hopethat allthe GovernmentDepartments andbankingsectorwillsupport theSMEs tocompetewithworldmarket.

Newsletter - August 2008 www.iitcindia.com | www.smechamberofindia.com


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Speech by :- Dr. R. A. Mashelkar, President, Global Research Alliance

SMEsare not merelythe backboneof the economy but alsoservesas a socialfaceof the economy. In China SMEsareconsidered toprovide socialstability withinthe country. Sothereis a differentangleto SME.

As per theAsia Business Monitor which indicates the SME business prospects in 2008, the Japanese confidenceindex for this year is down by 10%. For China it has slipped from 2nd to 5th position. In this confidence indexMalaysia and Indonesia have fared well. When it comes to Indian SMEs you will be amazed to hear that IndianSMEsarethemostconfidentwith87%, andthatisthehighest.

SMEs canbe broadly classified into three categories. First It is a traditional householdwork.They have lowbase of technology. Secondis theSMEs whom we allunderstand andwho maynot have thebest technological innovation

to support them.And the thirdone is themodern SMEswho areentrepreneurs,I willcall them“Technopreneurs” in information technology, bio-technologyandotheremergingsectors.

What is innovation? It isa slightimprovementin theexisting one. Innovation is something, which cango beyondthan what we have. It is importantto keepthespirit of innovation andnot just technological upgradation.Already wehave been talking aboutclusters.Tirupurand otherclustersaregoodexamples.Here theentrepreneurs form a conglomerateto createtechnologybanks.The otherimportant thing is to realise thepowerof networking.

To createand successfullyrun anenterprise3 important s arerequired incombinationand notin isolation.

Talent is obvious. Without talent we cannot do anything. India's great strength is talent. Most of the enterprises are built on Technologies. The third most

important factor is Tolerance. Tolerance for failure, tolerance for mistake and tolerance for ambiguity. Silicon valley is formed not because they had thetalented people or technology but they had tolerant people.That is where the . We have not stillbecomeadventurecapitalists.Lot ofgreat ideasgotkilled because as infants they gotkilled.

Many of you might have read the Bill Gate's speech when he got the Harvard Hon. Doctorate. He was declared as the most successful drop out fromHarvard. In hisearlystages hehadoffered to sell hissoftwareto a PChardwaremanufacturing company.Ashewasa student then,he thought they wouldnot respond.Very interestinglywhoeverspoke tohimf romthatcompanysaid, .S ince theygavehimamonthhecoulddeveloppropersoftware.Thistypeof toleranceto newideasand productsareessential to encouragesuccessfulentrepreneurship.

“T” 1) Talent 2) Technology 3) Tolerance.

“Venture Capital has to becomeAdventure Capital”

“Pleasecomebacktousafteramonth”

Speech by :- Mr. Chandrakant Salunkhe - President,Small& MediumBusinessDevelopment Chamber of India (SME Chamber of India)

India International Trade Centre (IITC-INDIA)

Mr. Chandrakant Salunkhe, President, Small &Medium BusinessDevelopmentChamber of India (SME Chamber of India)saidin hisintroductory remarks that both theorganisationsarecommitted exclusively forthe developmentofMicro,Small andMediumEnterprises forthe last many years.

The Micro, Small and Medium Enterprises play a major role as a growth engine of the Indian economy. EventhoughSMEsmake considerablecontribution towards theNationaldevelopment, many of them donotpossess thecapabilitiesand resourcesto compete indomesticandinternationalmarkets. Most of them arealsonot awareaboutthe facilities,opportunitiesandvariousschemesspeciallydevised forSMEsector.

The inflation is affecting the growth of many countries but the impact of this inflation is much more on Indian SMEsforthelastfewmonths.Therefore,thepresentneedistobringdowntheinflationlevel.

Today'sConclaveis organisedto recollectand reiteratethe visionof ourdistinguishedvisionaryand formerPresident Dr. Kalam. WeatSMEChamber of India and IITC-India are trying to assist the SME Sector in all possible ways to empower them to succeed in 2020. The opinion of the experts is that our economymustgrowattherateofatleasttenpercenteveryyeartogetridofpovertyandgenerateemploymentforall.

This Conclave will highlight the role of Government, Corporate, Banking and financial Sector and other relevant organisation in supporting SMEs toachieve9%growthaswellastoguidethemtoensuretheirfutureprospectsin2020.Thefact that SMEs arewidely dispersedacross theentirecountry also makes them highly importantfrom a regional developmental perspective andas ameans to promote balancedandequitablegrowthall overthe country.

2020 is going to be very competitive.Thereforeappropriate steps andplanning arevery essentials. SMEs have limitations for acquiringnewtechnology,becauseoffunds.

In the increasingly knowledge-driven economy, intellectual property (IP) is a key consideration in day-today business decisions. New products, brandsand creative designs appear almost daily on the market and are the result of continuous human innovation and creativity. Small and medium-sizedenterprises (SMEs) areoftenthe driving forcebehindsuchinnovations.

Thesmall andmedium sector is in a position to make a significant contribution to theprogress of thecountry. It is important that we address squarely theproblems faced by this sector. Government andBanking Sectorhave an importantpart to play here. They have to play a proactive role of identifying andencouraging newentrepreneurs. It mustcomeforward to remove thebottlenecks facedby theSMEsat NationalandInternational level.

IndiaInternationalTradeCentre (IITC-India) and



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National Level Entrepreneurship Excellence Awards Presented to theEntrepreneurs and Corporate for Supporting & Assisting SMEs

for Enhancement of their business

Mr. Rajinder SinghChairman & CEO, Global Absolute Group

Mr. Rasesh KanakiaChairman, Kanakia Group

*This is an extended Award function to felicitate those who could not receive the award at the hands of Dr. C. Rangarajan, Chairman, Economic Advisory Council to the PMat the main Award Presentation Ceremony on 3rd May 2008 at Mumbai


Mr. Ashok PathareChairman & Managing Director, PAXCHEM LTD.

Mr. Sunil PathareVice Chairman & Maxwell IndustriesManaging Director,

Mr. Narayana B. ShettyDirector, Triveni Management Consultancy Services Ltd.

Mr. Sunil MantriChairman & MD, Sunil Mantri Realty Ltd.

(Award accepted by Mrs. Mantri)

For More Information Please ContactIndia International Trade Centre / Small & Medium Business Development Chamber of IndiaCentral Office

Registered & Correspondence Office

:- 3, Upper Ground Floor, Samruddhi Venture Park, Marol MIDC Industrial Estate, Andheri (E) Mumbai - 400 093.

:- 101, Murlidhar Baldev Estate, Nr Vikas Estate, Off Aarey Road, Goregaon (E), Mumbai - 400 063.

Email : [email protected], [email protected] | Web : www.iitcindia.com, www.smechamberofindia.com

Tel: +91 - 22 - 4035 8000 / 6677 0218 / 19 Fax: +91 -22 - 2874 3543

empowering indian smes for 2020

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