Export-oriented MSMEs must be encouraged through fiscal incentives: Expert
Jayarama Emani | The Dollar Business Global value chain linkages, be it nationally or internationally (export route) must be promoted as a policy for promotion of MSMEs through fiscal incentives, said an expert. Talking to The Dollar Business, Tamal Sarkar, Director, Foundation for Micro, Small & Medium Enterprises (MSME) Clusters (FMC) said that export orientation brings in fresh ideas. “In most such cases, the firms get integrated to Global Value Chains and enhance their competitiveness through learning, which otherwise would never be available.” He added, “However, if the non-exporting units are divided into those who are producing for local market as against those who are producing for long term buyers with good market reputation, the gap will be narrower or may ...
Grouping micro & small with medium enterprises self-defeating, says Expert
Jayarama Emani | The Dollar Business The recent norms of grouping micro and small with medium enterprises, when it comes to priority sector lending is self-defeating, said an expert. Speaking to The Dollar Business, Tamal Sarkar, Director, Foundation for Micro, Small & Medium Enterprises (MSME) Clusters (FMC) said, “It is well known that banks are prone to support small and medium, an estimated 300 to 400 thousand such enterprises all over India, as compared to 11 million micro enterprises, in the manufacturing sector. The reason is the ease, the collaterals available and the large value loan. Hence at times the same party is financed multiple times too.” “If we are truly interested in lending to priority sector, then it has to ...
Training must for the success of the new software for SMEs: Expert
Jayarama Emani | The Dollar Business An appropriate training mechanism will further strengthen the cause of the new software for the small and medium enterprises (SME) software launched recently, opined an expert. Speaking exclusively to The Dollar Business, Tamal Sarkar, Director, Foundation for MSME Clusters (FMC) said, “Micro enterprises do not have the capacity to understand basic formal accounting. They mostly look at accounts on cash rather than on accrual basis. It is important that we create appropriate training mechanism for the same.” Stating that the software is a welcome step by the government, Sarkar also added, “It will be important to provide such software in local language, for higher pick-ups and further strengthen the cause of the software.” ...
Government should promote vendorisation amongst small & large industries
Jayarama Emani | The Dollar Business World over, micro, small and medium enterprises (MSMEs) are exporting, but as an exporting nation we rank very low as our exports are legible, said Dr. Tamal Sarkar, Director, Foundation for MSME Clusters. Speaking exclusively to The Dollar Business, during a recently held event on ‘Make in India’ by The Federation of Telangana & Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI), Sarkar said, “If not international exports, I will rather look at MSMEs export internally to larger industries. We must promote vendorisation in India, so that MSMEs absorb technologies the way large enterprises do it by collaborating with multi-national companies.” In his presentation, ‘MSMEs and Global Competitiveness - A cluster based approach,’ ...
