Are Indian MSMEs losing their edge in world markets?


Their share in the country’s exports dips from 46.2% in 2009-10 to 43% in 2012-13.

With their share of India’s exports having declined from 46.2 per cent in 2009-10 to 43 per cent in 2012-13, India’s micro, small and medium enterprises (MSMEs) appear to be losing their edge in world markets.

“While the dip in exports is chiefly attributed to the continuing contraction of global markets, Indian industry is aware that inadequate market development, limited R&D and innovation, and physical infrastructure bottlenecks have also contributed to the slowdown,” said Raman Saluja, chairman of the Confederation of Indian Industry’s northern region committee on MSMEs.

“It is high time MSMEs stepped up their innovation drive to gain a larger share of global markets and became more responsive to emerging global market trends. Export markets also help MSMEs reduce their dependence on the relatively price-sensitive domestic market,” he added.

Saluja said that less than 0.5 per cent of Indian MSMEs export, while 25 per cent of European SMEs export within the EU and half of these (13 per cent) export worldwide. “The figures for Asian economies like Taiwan, South Korea, Singapore, and Malaysia are even higher, with SMEs driving their export boom,” said Saluja.

Over the years Indian MSME manufacturers of items like readymade garments, leather goods, processed foods, engineering items, and sports goods have captured a sizeable share of global markets, but a lot more needs to be done, he noted.

 

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SOURCE: http://www.business-standard.com/

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Categorised in: Import/Export, Manufacturing

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