OneWorld.net (U.S.)

The Prime Minister of India Manmohan Singh has lauded the spirit of small and medium enterprises (SMEs) and urged entrepreneurs to be globally competitive, while underlining the importance of small and medium enterprises (SMEs) and their contribution to the growth of new industries. He talked about the importance of risk and eagerness undertaken by entrepreneurs.

Manmohan Singh informed about international experience which shows that it is possible for SMEs to remain globally competitive even in an increasingly integrated global market. Detailing governmental and institutional support to this sector through incentives and infrastructure facilities, Singh hoped the enactment of the Micro, Small and Medium Enterprises Development Act would improve competitiveness and benefit firms in business ventures.

With almost 60 million people employed in this sector including the handloom and handicraft segments, Singh said they formed a highly important component from a regional developmental perspective and as a means to promote balanced and equitable growth all over the country. He said that the present UPA government has charted a new strategy based on cluster development that offers a holistic and integrated approach to SME sector's development, which emphasizes on skill development.

There has been a decision to set up a National Mission on Vocational Education and Skill Development, and there is intention to fund more polytechnics and industrial training institutes to address the growing demand for skilled manpower of our enterprises. The setting up of a statutory National Board for Micro, Small and Medium Enterprises for the first time, Singh said, would bring together representatives of SMEs along with policy-makers, bankers, trade union leaders and others.

Recognizing the importance of extending social security to workers in the micro and small enterprises sector, the prime minister said an old age pension would be provided to all citizens above the age of 65 and those living below the poverty line. There will be provision of life and disability cover to one earning member in each family so that they and their families can get over the consequences of injury or death. The government is working on a health insurance model so that the poor did not have to bear the high cost of medical care.

Source: i4d