Communications Minister Dayanidhi Maran has urged large manufacturers to support small and medium enterprises (SMEs) by helping them to set up ancilliaries, providing technical know-how, finance and buy-back arrangements.
Delivering a keynote address at a summit on SMEs hosted by the American Chamber of Commerce in India (AMCHAM), Maran said, "I am sure with a little bit of initial assistance, Indian entrepreneurs will be able to deliver quality products at international prices."
He hoped AMCHAM could set up a system by which there could be centralised purchase of technical know-how from the United States and Singapore based companies by Indian SMEs.
Maran pointed out that the major problems plaguing SMEs in India were access to timely and adequate credit, technology infusion, quality assurance, marketing constraints and upgradation of managerial and entrepreneurial skills. Despite these SMEs contributed about 40 per cent of the gross industrial value addition in the Indian economy, he said.
"Unless the delivery time for the components and parts to the SMEs are brought down, large manufacturers would not be able to reduce inventory costs thereby affecting them as compared to China," he warned.