E-Paper
Globalisation biggest challenge to SISI: Arya
Industrial Advisor, Union Small Industries Ministry, J K Arya was in the City to attend the inaugural function of Ind Expo 2006. He talked to Hindustan Times on the prospects of small-scale industry sector in the country.
Industrial Advisor, Union Small Industries Ministry, J K Arya was in the City to attend the inaugural function of Ind Expo 2006. He talked to Hindustan Times on the prospects of small-scale industry sector in the country. Excerpts:
Q. What are the challenges being faced by the SSI sector in the country today?
The biggest challenge is globalisation. It is not new, but even now it’s a big challenge. SSI is still trying to cope up with globalisation and has succeeded to some extent. Exports are up and the industries are constantly working to upgrade technology. The country has done well in the field of IT and pharma and SSI has also contributed. The ministry has come out with credit linked subsidy scheme wherein it gives 15 percent subsidy in loans on technology upgradation.
Q. How big is the threat from China?
India and China have a great similarity in production cost, as it is less compared to the industries in the West. When we compare to other nations we are ahead, although we are lagging behind China. But taking their example, we have to grow.
Q. How much has poor infrastructure impacted the growth of SSI?
Poor infrastructure was always a problem. We need to do a lot more in the field of infrastructure development. We have a scheme in place to give assistance to the State Government for infrastructure development in industrial estates. We are integrating it with cluster development (programme) from April 1, 2007.
Q. What are the benefits of cluster approach?
Cluster approach is the best for the industry. When a cluster comes up there will be easy credit for other units. The technology will be tried and known. Once a unit upgrades its technology, others will follow. All over the world, cluster development is the best development.
Q. What are the prospects of SSI in India?
SSI will always be a success because overheads are low and there is greater flexibility. More innovations can be done as compared to the large-scale industries. For instance, take simple item like leather toys that were displayed at an international fair at Panama last year. The visitors were surprised at the low cost. The future for SSI sector is bright.
