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India, US edge close on SME partnerships

business Updated: Nov 01, 2010 23:05 IST
Debobrat Ghose

Following the example of the IT industry, small and medium enterprises (SME) sector is hoping for vital linkages with the US, with an eye on big economic gains.

Efforts are afoot by the ministry of micro, small and medium enterprises (MSME) to impliment a letter of intent (LoI) signed in 2007 between the ministry and the US into a memorandum of understanding (MoU) during President Barack Obama’s India visit this week.

According to official sources, the objective of the MoU is to initiate institutional cooperation between Small Business Administration (SBA), the US government agency that provides support to small businesses, and the ministry of MSME for forging strategic linkages between the small business of the US and Indian SMEs to further their economic development, foster international trade and job creation.

“The ministry has already sent a draft MoU to ministry of external affairs, which is under consideration with the latter,” said Uday Kumar Varma, secretary, the ministry of MSME.

The sectors identified for strengthening the alliance and increase bilateral trade are food processing, biotechnology, nanotechnology, healthcare and low cost manufacturing.