NEW DELHI, April 9: The Federation of Indian Chambers of Commerce of Industry (Ficci) has suggested a number of measures such as setting up of a technology mission, a separate fund for research and development and proliferation of number of venture capital companies, in order to give a fillip to the small scale industry (SSI) sector.In a note prepared on the sector, Ficci has stated that suitable measure are required to be initiated for the development of the sector considering that these units are maintain 40 per cent share in manufacturing and direct exports and almost 50 per cent of the organised manufacturing employment.
The chamber added that the technology mission should be set up to access relevant technology. In addition, it should go into the details of technological requirements of small enterprises in different sectors and establish networks to harness the potential of all existing institutions in India and worldwide for the benefit of small and medium enterprises.
It further stated that aseparate fund at national level could support the SSIs in absorbing technology transfer costs as well as sponsoring research and development for SSIs.
Ficci has also suggested that factoring services and bill discounting schemes should be encouraged to resolve the financial needs of the sector.The proliferation of venture capital companies, stated the chamber, would make available financial support to the SSI sector. Most units are reluctant to adopt modernisation on account of heavy expenditure involved and their inability to provide their own share of equity.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
