Centre's new scheme likely to benefit SMEs

The scheme announced by the Central government recently to enhance competitiveness in the Indian capital goods sector for development of specified technologies is likely to benefit small and medium enterprises (SMEs) in the country. The Union cabinet has made a budgetary provision of Rs 581.22 crore for the scheme.

Disclosing this, Union Food Processing Minister Harsimrat Kaur Badal has said that more than 80 per cent of Indian companies are SMEs, and they have limited capabilities to develop newer technologies. Government intervention was needed as it considers that technology was the biggest weakness of the sector.

For this purpose, the help of Indian Institutes of Technology and other similar institutions is to be taken. "To reduce cost of conversion, common facilities like testing, development and industrial areas are also proposed," she added.

Badal said that the scheme is the first of a series of initiatives under the prime minister's vision of "Make in India". The scheme will be scaled up on the basis of experience gained and seeks to substitute imports.

Badal said that the scheme aims to make the Indian capital goods sector more competitive through development and acquisition of latest technologies, and the setting up of infrastructure facilities like common engineering facility centres, sector-specific integrated industrial facility centres and test and certification centres.

She said that the scheme is the first of a series of initiatives under the prime minister's vision of "Make in India". The scheme will be scaled up on the basis of experience gained and seeks to substitute imports.

Successful implementation of this scheme is expected to boost development of indigenous technology and manufacturing, cost competitiveness, reduction in import, augment exports and generate employment.

The scheme is a first step in the larger journey of developing global competitiveness, particularly for small industry, which is the backbone of India's manufacturing economy and a large employment provider. It is also expected to benefit small industry in Punjab, which is struggling owing to imports from China.