Editorials

by Rajen Kumar

No Escaping Social Media

Running a magazine concentrating on issues of small and medium enterprises and managing with limited resources is a like living life on the edge. In this rush of meeting deadlines,...

Special Reports

Apr 2012

EMRC, Brussels Associates with SME WORLD as its New Media Partner

EMRC has promoted business partnerships with the developing world and has organised dozens of business forums in key decision-making cities, such as Amsterdam, Rome,...

Government Schemes

NMCP Schemes to Enhance Competitiveness of SMEs

SME WORLD Bureau
Feb 2011

The Small and Medium Industries form the backbone of manufacturing sector not only in this country but even in the developed countries. The small scale sector contributes to 40% of manufacturing. The small industries sector also contributes substantially to the exports. In the past, the small scale sector existed in a relatively sheltered environment. The levels of protection were high, several goods were reserved for production in the small scale sector, special fiscal incentives were extended to the units in the sector and a number of support programmes were also drawn up to ensure the Small Industries survived.

In the post-reform era, starting from 1991, the situation for the Manufacturing Sector as a whole as well as for the Small Industries has undergone a dramatic change. The tariffs on imports have been reduced very substantially. India is gradually integrating with the world economy; new trade blocs are forming and many countries, including India, are entering into Preferential Trade Agreements, Free Trade Agreements or Comprehensive Economic Agreements to improve trade in areas of their comparative advantage.

In this process the Indian economy is becoming more open and there is an urgent need for the industry to adjust to the new situation. The Indian industry need to become competitive by cutting down overall costs to that extent to survive and grow. The situation confronting the Small Industries in particular provides both opportunities as well as challenges. An opportunity to grow in a global market place is available to access entry into the global value chain by virtue of their being internationally competitive. The others would need to reposition themselves and become competitive to meet the challenges if they have to survive.

Manufacturing Drives Growth

Worldwide, it is manufacturing that has driven growth. In order to revive the manufacturing sector, particularly small and medium enterprises, and to enable them to adjust to the competitive pressures caused by liberalization and moderation of tariff rates, the government has launched many schemes under the National Competitiveness Programme to strengthen the SMEs in their operations and sharpen their competitiveness.

National Competitiveness Programme was formulated in 2005 with an objective to support the Small and Medium Enterprises (SMEs) in their endeavor to become competitive and adjust the competitive pressure caused by liberalization and moderation of tariff rates. The schemes are called as 'Manufacturing Competitiveness Programme'. The design of the scheme is being worked out by the National Manufacturing Competitiveness Council (NMCC) in consultation with the industry.

The National Manufacturing Competitiveness Council (NMCC) has finalized a five-year National Manufacturing Programme. Ten schemes have been drawn up including schemes for promotion of ICT, mini tool room, design clinics and marketing support for SMEs. Implementation of these schemes is to be carried out in the PPP model.

Schemes under the National Manufacturing Competitiveness Programme (NMCP)

Marketing Support/Assistance to MSMEs (Bar Code)
Support for Entrepreneurial and Managerial Development of SMEs through Incubators
Enabling Manufacturing Sector to be competitive through Quality Management Standard & Quality Tech. Tools (QMS/QTT)
Building Awareness on Intellectual Property Rights (IPR) for MSME
Lean Manufacturing Competitiveness Scheme for MSMEs
Mini Tool Rooms proposed to be set up by Ministry of MSME (MTR)
Design Clinic Scheme for design expertise to MSMEs Manufacturing sector (DESIGN)
Marketing Assistance & Technology Up-gradation Scheme in MSMEs.
Technology and Quality Upgradation Support to MSMEs
Promotion of ICT in Indian Manufacturing Sector (ICT)

0 Comments >>

Our Achievements

Winner of appreciation award for promoting SMEs in India.
1st ever Indian magazine to penetrate tier II, III cities & the rural belt.
Industry Partnerships include CII, FICCI, ASSOCHAM, PHDCC, AIMA, ITPO, SME Network, Federation of Indian Micro Small Enterprises (FISME)
Official Magazine Partners for several national & international MSME events.

The Last Word

More Learned than Educated, You were!

I was speechless. Rather hesitatingly I asked him, “So, what have you decided, Sominder ?” His reply was curt and candid, “I have told the doctors that I don’t want to live life as dumb. Only...

You can also write for SME WORLD

We are looking for writers and experts to contribute original stories and articles. Send an email to smeworld@gmail.com with your story idea and lets get talking.

Some of our valued contributors are...