SME Sector Needs Government’s Aid: MAIT

Realising the potential of IT Industry, the new government is focusing on this sector for achieving its aim to exemplify India as a manufacturing hub. With the spur growth of IT hardware industry, MAIT has raised an urge of a clear roadmap for embarking IT small and medium enterprises (SMEs) during the implementation of Digital India initiative.

Addressing to the vitality of IT SMEs, Rahul Gupta, chairman— SME Chapter at Mait said, “To brand itself as a premier IT & manufacturing hub at a global level, Indian Government needs to create an exclusive ecosystem across all industry verticals so that the businesses can build and grow the entire value chain required to come up for excellent results.”

Showing his trust in the system, he further added, “We are confident about the Centre’s make-in India intent. Indigenous products should be identified and SMEs, as a part of ecosystem, should be encouraged with appropriate impetus to enable them create robust offering.”

Gupta notified that according to the current scenario, the domestic firms are seeking initiatives beyond general schemes and incentives. These firms are facing stiff competition from the other pro-players in the market, thus they are looking for assurances from the government on foreign collaboration and product procurement. He added, “Government should give guarantee to the firms that it would buy a certain percentage of the product manufactured by the company, so that companies gets motivated and don’t shut the shop.”

MAIT has notified their point that India itself possess a potential market for the electronic products, thus government is taking several steps to facilitate indigenous manufacturing of products such as telecom equipment, semiconductor chips, nano electronics and biometric identity devices. According to MAIT, “India can emerge as a strong destination although it might be initially difficult to replace China in mobile, tablet and PC production.”

Indian government is also eyeing on Taiwan for investment, as Taiwan has over-invested in China and is looking for alternatives now. The government has also set a target of zeroing the net electronics imports to zero by 2020, from about $100 billion now, which will help the country control its current-account deficit.

Supporting the government’s initiatives, MAIT has also launched an SME portal that will include a resources section that could help small organisations to get desired workforce. The organisation is also aiming to showcase made-in India products at the CeBIT 2014 trade show to be held in Bangalore from November 11th to 14th.

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