Indian SME sector should reposition itself: CII

NEW DELHI: CII said that the Indian small and medium enterprises (SME) sector should reposition itself to achieve compatibility with the changing international trade scenario and become globally competitive.
A Chamber survey said that simplification of labour laws, legislative support including enactment of Small Enterprises Development Act, Limited Liability Partnership Act and legislation regarding factoring of debts, are the other factors required for repositioning of the SMEs.
The respondents to the survey also sought regulatory changes, including FDI norms, VAT implementation and indirect tax structure to achieve the desired goal, a chamber release said.
They also said that transition from SSI to SMEs, awareness on impact of WTO and use of Information and Communications Technology would be the contributors to the process of repositioning the SMEs.
The survey also welcomed measures suggested by the Kelkar Task force such as drawing a negative list for SSI excise exemption, extending exemption to matches on advalorem basis, lowering registration limit to Rs 50 lakh and simplification of customs and excise procedures.
It said there was a growing realisation among Indian small scale industry about the usage of intellectual property rights (IPRs) for their products by the way of trade/service marks related rights, copyright, patent rights and design-related rights that majority of the respondents had or were in the process of acquiring.