Growth of Gujarat SMEs highest in electrical equipment sector: NSIC official

NSIC official says the closure rate of SMEs in the state has come down considerably in the last six years

The growth of Small and Medium Enterprises (SMEs) in Gujarat in the electrical and electronic equipment industry is the highest in the country, said, an official of National Small Industries Corporation (NSIC), a public sector enterprise of the Ministry of Micro, Small and Medium Enterprise (MSME), on Friday here.

“Growth rate of SMEs in the electrical and electronic equipment industry in the last six years in Gujarat is 86 per cent while, Maharashtra comes second with 24 per cent growth,” said P K Jha, zonal general manager, central zone, NSIC. He was speaking to mediapersons on the sidelines of ‘Gujarat Manufacturing Show -2014, organised by the Confederation of Indian Industry (CII).

On SMEs that have closed down, Jha said that 15 per cent of SMEs in electrical and electronic equipment industry in the state have shut down in the last six years, adding that the closure rate has come down considerably in the six years.

Previously, Jha stated, the shutdown rate of SMEs had been around 26-27 per cent. Nationally, he said, around 25 per cent SMEs closed down in the last six years in the electrical and electronic equipment industry.

Jha said that consortia marketing programme has been initiated for identical product manufacturers to come together and produce products as per the quality standards prescribed by government agency.

“Consortia marketing programme has been started in August 2014 by NSIC to bring together identical product manufacturers to produce goods as per quality standards prescribed by the concerned government agency,” Jha said, adding that this has been done to maintain international quality of products to cater to export market.

Earlier, in his inaugural address, S K Negi, managing director, Gujarat Energy Transmission Corporation Limited (GETCO) outlined the need for global sourcing of raw materials and human resources, creation of skilled local manpower, technology upgradation and quality standardization to revive the power sector, which is currently witnessing negative growth.

He said that the electrical and electronic equipment industry must invest in developing products with “brand” value.

“Products manufactured by electrical and electronic equipment industry do not have “brand” value, as such.  There should be consistency in quality product deliverance and an attempt to maintain and sustain the brand value created through such products,” said Negi.

K K Tiwari, industrial advisor, Ministry of Heavy Industries and Public Enterprises said that for India to achieve annual Gross Domestic Product (GDP) of 8-9 per cent, electricity generation capacity has to be increased by around five times (from what it currently is) by 2032.

He also focussed on the need to address the trend of obtaining certificates and degrees from Industrial Training Institutes (ITIs) and asking for jobs.

“The trend of obtaining certificates and degrees from Industrial Training Institutes (ITIs) and asking for jobs after passing out must stop. The focus must be on necessary skill upgradation in line with the demands of industry,” he said.