Indian SMEs should raise interaction level to identify new biz opportunities, says Dr JS Juneja of PHDCCI

Although, the Indian SMEs are putting up a good performance but they should regularly interact amongst themselves to tap new business opportunities, according to Dr JS Juneja, Chairman, Task force on MSME, PHD Chamber of Commerce and Industry. He also said that government should take initiatives to ensure credit flow to the SME sector.

 

 

What is the role that PHD Chamber aims to play in India's SME sector?

 

Dr JS Juneja: PHD Chamber plays a significant role in India’s SME sector as most of its members are SMEs. PHD Chamber looks after the interest of all the members as it not only involved in advocacy but also assists them in growing their business. On behalf of all the members associated with PHD chamber, we ensure overall development and also help them to interact with other states. Also PHD has respectability in industry and builds the enterprise profoundly.

 

 

 

What are the current projects being undertaken by PHD Chamber?

 

Dr JS Juneja: PHD Chamber is working on a project named National Seminar on MSMEs, Gearing Up to Global Competitiveness: Problems and Prospects In India. Small and Medium Enterprises (SME) sector plays a pivotal role in overall economic growth of the country and contributes towards income generation, employment and exports. A few topics that will be discussed in the above mentioned seminar are (a) 12th Five Year Plan: Issues & Policies reforms pertaining to SMEs (b) Funding for MSME – Issues & Challenges. (C) Building a Global Competitive MSME Segment – Role of States.

 

 

How do you think that the Indian SMEs are performing in the present economic crisis?

 

Dr JS Juneja: Indian SMEs are performing quite well but have their own problems and issues. The economic liberalisation in India refers to ongoing economic reforms in India that started on 24 July 1991. In order to sustain and grow, it is very important for the SMEs not only to deal with big corporate, government companies but also to interact amongst themselves to identify new business opportunities.

 

 

What are the key challenges faced by the Indian SME sector?

 

Dr JS Juneja: First and foremost challenge that is faced by Indian SME sector is finance. The flow of money to SME sector should be checked after every 5 years. Government departments, banks, financial institutions and corporate should take the initiative of funding SMEs in India. Problem of imports and duty are issues of great concern. China has become India’s competitor as they are manufacturing almost everything that is needed in India. In China, industry enjoys full support of government. Electricity and labour is available at cheaper rates. In India, the labour laws needs to be amended so that infrastructure development takes place accordingly. The other problems in India are - manufacturing capacity is poor, labour is not skilled and technological development has to be done properly.

 

 

Do you feel that government policies (both Centre and state) are working in favour of the SMEs? Are they assisting these companies in alleviating the pertinent issues?
 

Dr JS Juneja: Yes, government is taking steps to promote SMEs in India. The below mentioned steps are few of them taken for the betterment of SMEs.

 

(a) MSME Development Act 2006.

(b) Skill development mission that is chaired by Prime Minister Dr Manmohan Singh.
(c) Prime Minister Task Force.
(d) National Manufacturing Competitiveness Programme (NMCP).

 

 

 

 

Kindly throw some light on the importance of information and communication technology (ICT) for SMEs.

Dr JS Juneja: ICT helps in promotion of business as portals have got all the information and hence, reduce cost of travelling. Use of smartphones also helps in promoting the business. ICT tools can be used by all the SMEs as it is not too expensive. The adoption of technology improves the standard of marketing. The third industrial revolution will be taking place on ICT within next 4-5 years.

PHD Chamber is actively involved in creating awareness as recently we had organised a seminar on affordable ICT solutions for SMEs to reduce cost and complexity in business operations. When asked by ‘Bill Gates’ the role of ICT he said “by the year 2015 only two kind of companies will exist (a) Company that support ICT tools (b) No company.



What is the outlook for the SME sector in this year?

Dr JS Juneja: They are doing well and domestic market is in good condition. People are happy as exports are also taking place. SMEs sector should improve the quality and start using ICT tools for promoting the sector. The sector should tie up with big companies. The companies can bring changes if they are actively involved in imports and exports.



Kindly share the roadmap of PHDCCI for the ongoing financial year 2012-13.

Dr JS Juneja: The Chamber had recently organised seminar on ICT solutions; states specific programmes will be organised as well. A memorandum of understanding (MoU) has been signed with National institute of design (NID). PHD Chamber successfully conducted a series of such design awareness seminar in Agra, Faridabad, Roorkee, Delhi, AMBALA, Gurgaon and Meerut in different subject audience clusters with one additional workshop in Jodhpur between January 2012 to September 2012. Our association with NID has strengthened and goodwill created by virtue of the above mentioned initiatives.