Conference on Indian growth story and SMEs today

Written by fe Bureaus | New Delhi | Updated: Oct 28 2009, 05:35am hrs
The Financial Express is organising a round table conference on The Indian Growth Story & the SMEs in the national capital on Wednesday, even as the policy makers are searching for feasible options to solve the problems of 2.61 crore small and medium enterprises (SMEs) in the country.

Dinesh Rai, secretary in the ministry of SME, representatives of the industry and banks will discuss the funding and regulatory problems during the conference, which comes a day after the Reserve Bank of India announced the second quarter monetary policy review.

The conference will also be attended by Federation of Indian Small and Medium Enterprises secretary general Anil Bhardwaj, Milagrow CEO and founder director Rajeev Karwal, Federation of Indian Export Organisations director general Ajay Sahai, Auto Component Manufacturers Association president Jayant Davar, State Bank of India general manager (SME-Trade & Services) T S Krishnaswamy and PHD Chambers vice president Salil Bhandari.

SMEs have been complaining of lower bank credit and strict labour laws. Prime Minister Manmohan Singh has also set up a task force under the chairmanship of his principal secretary T K A Nair to evolve a mechanism to deal with credit, labour and marketing issues. As per RBI data, loans to small enterprises grew 34% in the year ended May 22, 2009 against 72% a year ago.

As per the 4th National Census of micro, small and medium enterprises, percentage of sick units increased from 13.98% in 2000-01 to 14.47% in 2006-07. The estimates also showed that MSME contributed 9% to countrys gross domestic product and 40% to exports.