Panel Discussion on Key Challenges Facing SMEs

IMC Chamber of Commerce and Industry and Business Standard organised a Panel Discussion on what is arguably a hot topic these days: 'Challenges facing the SME Sector' on October 10, 2019. 

IMC President Mr. Ashish Vaid presided over the meeting. The following panellist participated, Mr. Jayant Khadilkar, MD, Jay Elastomers Pvt Ltd; Mr. G Chokkalingam, MD, Equinomics Research & Advisory Services; Mr. Deepak Doshi, Director, Star Paint & Oil Industries & Past President (Indian Small Scale Paint Association); Mr. Dev Dutt, Business, Development and Sustainability, Foods and Inns, and Mr. G Chandrashekhar, Director, IMC ERTF. The discussion was moderated by Mr. Krishna Kant, Senior Journalist, Business Standard.

In his welcome address, Mr. Ashish Vaid highlighted the important role that SME has played in our economy. More than 60 million units in this sector contribute to about 30% of the country’s GDP. SMEs create jobs, generate revenue and bring export earnings, he pointed out. The IMC President also said that the SME sector faces a twin problem of having to manage a current business and at the same time engage in the succession plan for the future. 

The Moderator set the ball rolling by highlighting the role and importance of the SME sector in the Indian economy. The Panelists analysed many of the challenges confronting the SME sector. The main challenges included access to bank finance, skill development, dealing with customers who usually are large corporates, risk management and so on. 

It was noted that the government was supportive of the SME sector. Recent decisions of the government included the grant of a one-crore loan in one hour, expeditious GST refund for MSMEs and interest subvention. 

After due deliberation by the Panelists, the following suggestions emerged. Banks must allow preferential interest rate for SMEs. For SMEs, a smart card containing relevant financial information will help banks to expedite the processing of loan application. For capacity building, Enterprise Development Centers should be established. A consortium approach to raw material buying would result in scale economies and better bargaining power. SMEs should modernise thorough digitisation and move to ‘Industry 4.0’, and Risk management and building resilience against a downturn. 

During the open house discussion, many participants made pertinent observations and raised questions, which were satisfactorily answered by the panellists. The meeting ended with a Vote of Thanks.