The Hindu Business Line : Small units must consolidate in a strategic manner: Pranab

(From right) The Union Defence Minister, Mr Pranab Mukherjee, the Union Minister for Small-Scale Industries and Agro and Rural Industries, Mr Mahavir Prasad, and the CII past-President, Mr Subodh K. Bhargava, at the India Global Summit on MSMEs 2005 in the Capital on Friday. — Kamal Narang

New Delhi , Nov. 25

THE Defence Minister, Mr Pranab Mukherjee, on Friday called on the micro, small and medium enterprises (MSMEs), that play a major role in defence supplies, to look at consolidating in a strategic manner while maintaining their identity.

``The abilities of SMEs across the globe to produce very high technology, low volume components at a competitive price compared to products made by large supplier has many a time forced them to bring down costs considerably,'' the Minister said while inaugurating the `India Global Summit on Micro Small and Medium Enterprises' on Friday. The conference was organised by the Confederation of Indian Industry (CII).

The Defence Minister said several MSMEs are at risk as a result of international pressure and were unlikely to survive without making significant changes.

He said that a high-powered committee on defence production had dwelt on involving SMEs for meeting the needs of the armed forces. Ordnance factories outsource 20-25 per cent of their requirements from the private sector, mainly MSMEs, he added.

Addressing the meeting, the Minister for Small-Scale Industries and Agro and Rural Industries, Mr Mahabir Prasad, said that the global community of MSMEs and policy makers were poised for a renewed leap into the future.

He said that in the rapidly evolving future, innovation would be the key to global competitiveness of MSMEs.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page