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Gov't panel to look into problems of India's small businesses

Publication Date : 03-04-2014

 

The government of India has formed a committee to look into the problems affecting the country's micro, small and medium enterprises (MSMEs).

This has been done in view of a policy requiring all government entities to source 20 per cent of their requirements from small-scale business units starting next year.

"The government has formed a committee under the secretary of MSME, which will review all the problems being faced by small-scale units and give its recommendations," Jasbir Singh, general manager of the state-run National Small Industries Corp (NSIC), said at a Federation of Indian Chambers of Commerce and Industry (Ficci)-organised seminar on MSMEs.

"From 1 April 2015, it will be mandatory for all government departments to implement the public procurement policy by which 20 per cent of all government and public sector procurements has to be from SSI (small scale industry) units," he added.

Currently, although every ministry, except defence, is required to procure a minimum of 20 per cent of annual value of goods and services from micro and small enterprises, many ministries have yet to come up with their respective procurement plans.

The government has thus started a review of the public procurement policy both at the national and state levels. Singh said there were 350 items reserved under the government's procurement policy for sourcing from small units.

Speaking earlier, Ficci's MSME cell president Sanjay Bhatia said the chamber would provide members cost-effective, quality MSME insurance services.

 

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