SSI units exports share dips

Mumbai, Nov 21 | Updated: Nov 22 2005, 05:30am hrs
The export share of Small Scale Industry (SSI) units has come down from 58.4% in 1991-92 to 52.4% in 2002-03, according to a latest study by Export-Import (Exim) Bank of India.

The study noted that while these sectors have improved their cumulative share in India's total exports (from 51.6% in 1991-92 to 55.5% in 2002-03), the export share of SSI units in these sectors have come down from 58.4% in 1991-92 to 52.4% in 2002-03. The study has found out that this could be a result of liberalisation, which could have facilitated more and more SSI units to increase their capital investment in order to emerge as global players.

These are the findings of the Exim Bank study on SME sector namely, "Export Performance of Small and Medium Enterprises in India". The study noted that SME development requires cross cutting strategies that touches upon many areas, such as conducive policies, simplified legal and regulatory framework, good governance, abundant and accessible finance, suitable infrastructure, entrepreneurial skill development, and competitive environment.

According to T C Venkat Subramanian, chairman and managing director, Export-Import Bank of India said that SME competitiveness could be enhanced through networking and sharing of experiences from successful firms. "The networking could be done by way of transfer of technology, joint ventures, marketing arrangements, or even outsourcing. Such networking approach enables SMEs to overcome many of the limitations of size, efficiency and quality", said Mr Subramanian.

The study analysed 12 SSI intensive sectors viz., engineering goods, chemicals and allied products, basic chemicals and pharmaceutical products, plastic products, leather products, processed food products, marine products, woollen garments and knitwear,and processed tobacco and bidi.