Its high time for SMEs to take a new leap forward: PM

Prime Minister Dr Manmohan Singh today said that it was high time for the SME (small and medium enterprise) sector to take a new leap forward, and that the sector should become globally competitive, reduce costs and improve productivity.

Mumbai, June 22 : Prime Minister Dr Manmohan Singh today said that it was high time for the SME (small and medium enterprise) sector to take a new leap forward, and that the sector should become globally competitive, reduce costs and improve productivity.

The Prime Minister said this while speaking at the "CNBC-TV18 Emerging India Awards, 2007" for Small and Medium Enterprises here.

He said: "The time has come for a new leap forward for our SME sector. You must become more globally competitive. You must reduce costs and improve productivity. You must pay greater attention to quality and to the welfare of your employees and workers.

International experience shows that it is possible for SMEs to remain globally competitive even in an increasingly integrated global market. In fact, the increasing need for greater customer choice and the move away from mass production of uniform products to small batch production of differentiated products have made SMEs more relevant to the spirit of our times. Technological advances are also in favour of SMEs as smaller scale production becomes more viable."

He assured all possible help to the SME. "Our government is committed to the growth of SMEs and to the emergence of new enterprises in India. We have passed the Micro, Small and Medium Enterprises Development Act to promote the growth of SMEs. We have announced a policy package for doubling credit flow to this sector. As our economy grows, new growth opportunities are emerging for SMEs in sectors like defence, civil aviation, tourism, bio-technology and agri-business. Our government is open to new ideas on how we can spread the benefit of industrialization across the country and encourage new enterprises for the sake of more balanced, regional economic development," said the PM.

He further said: "The emergence of a new generation of Indian enterprise is one of the great success stories of our time. It shows that as new opportunities emerge, we Indians are ready to make full use of them. We are second to none when it comes to creativity and enterprise. I salute the spirit of enterprise of our people."

Dr Singh also said that the SMEs had proved to be the largest creators of employment opportunities. "They account for more than a third of our manufacturing output and more than a third of our exports. They will be the best bet for the future in creating more and more employment opportunities that we need and that are essential if we have to reduce the proportion of our population dependent on agriculture," he added.

ANI