'MSMEs, foreign retailers can collaborate for skilling people'

NEW DELHI: In order to meet the procurement standards required by overseas multi-brand retail firms, think-tank ICRIER today suggested a technical collaboration between small units and foreign retailers to build a pool of skilled professionals.

On the issue of global quality standards for sourcing goods from micro and small units (MSEs), ICRIER Professor Arpita Mukherjee said there are basic minimum international standards, but there are variations in those as well. Besides, at times, companies follow their own private standards.

"I think there is a scope for the government to partner for skilling small units to meet global standards, especially in terms providing vocational training...," she said at a ICRIER function here.

Indian entrepreneurs can work with foreign retailers in this regard and training could be provided to small units with the help of the National Skill Development Council ( NSDC), Mukherjee added.

NSDC promotes skills development by catalysing creation of large, quality, for-profit vocational institutions. It provides funding to build scalable, for- profit vocational training initiatives.

Also, Mukherjee said that many companies, whether Indian or foreign, provide technology and design of the product to the MSMEs.

In September 2012, the Cabinet decided to operationalise 51 per cent FDI in multi-brand retail but left it to the state governments to allow setting up of such stores.

Under the policy, there is a condition for global retail chains requiring them to procure at least 30 per cent of their total requirement from Indian small industries.