The Hindu Business Line : Innovate to stay competitive, Kalam tells small-scale units

He said this while inaugurating the Commonwealth-India Small Business Programme in Bangalore on Sunday, organised by the Commonwealth Secretariat in association with the Export-Import (EXIM) Bank of India and Central Bank of India.

More than 60 representatives of 33 Commonwealth countries are attending the six-day event.

The Secretariat is also concurrently hosting the Commonwealth Natural Fibre Skills Development Programme to commemorate the UN General Assembly’s declaration of 2009 as the Year of Natural Fibres.

Industree Craft Foundation, a city-based NGO, engaged in providing market access to rural artisans working with a variety of natural fibres, is among the programme participants.

Mr Kalam said micro, small and medium enterprises (MSMEs) need to “enhance quality, be cost-effective and be positioned to supply in time”.

This, he said, would ensure that they remain competitive. He urged members of the Commonwealth to collaborate in research and development so that small producers can add value and thus remain competitive.

“Design centres need to be created so that MSMEs are competitive,” he said.

Global network

Mr Ram Venuprasad, Advisor, Enterprise Development, Commonwealth Secretariat, said a global network for natural fibres will be launched during the event.

Mr S. Sridhar, Chairman and Managing Director, Central Bank of India, said: “Inclusive banking is the next frontier in banking. Funding MSMEs in rural areas would herald the next rural revolution.”

The Chairman and Managing Director, EXIM Bank, Mr T.C. Venkat Subramanian, said the MSME sector has been “severely affected” by the economic downturn.

Mr Shankarnarayan Rao, Executive Director of EXIM Bank, said its micro-finance initiatives are routed through a number of public and private sector banks.

“The effort is to enhance South-South cooperation by exploring markets in developing countries,” Mr Rao said.

EXIM Bank also provides information on access to new markets and technologies, while trying to minimise the cost of funds to small and micro-entrepreneurs, he said.

Mr Kalam also released a study on MSMEs in the context of globalisation, conducted by the EXIM Bank.