The Hindu Business Line : `SMEs can use IT to become competitive'

THE outsourcing boom cannot but have a beneficial impact on the SME sector. Opportunities are especially available for Indian SMEs in food processing, gems and jewellery, auto components, bulk drugs, apparel and knitwear, according to Mr T. C. Venkat Subramanian, Chairman and Managing Director, Exim Bank of India.

Addressing the Second Commonwealth-India Small Business Competitiveness Development Programme on Monday, Mr Venkat Subramanian underlined the need for SMEs to use IT to sharpen their competitiveness.

"The domestic IT usage is also largely confined to the financial services sector with fewer interfaces in the manufacturing sector."

The event was a meeting of 35 Commonwealth countries that focused on sharing of expertise in SME development.

He also stressed the need to build logistics and supply chain management capabilities.

"Large firms maintain only functions closest to their core competencies and outsource much of manufacturing activities to SMEs; so, co-ordination of outsourced activities becomes critical in determining the competitiveness of SME firms." Mr Venkat Subramanian also said that finding sources of finance for upgrading technology was the hardest, adding that Exim Bank had set up "an exclusive group" to focus on financing the needs of SMEs.

"The primary objective of the group is to develop a portfolio of externally oriented SME clients for the bank and to ensure smooth credit delivery to them."

Speaking on the occasion, Mr Anupam Dasgupta, Secretary, Ministry of Small Scale Industries and Ministry of Agro and Rural Industries, called upon the SME sector to think globally.

Earlier, Mr Ram Venuprasad, Advisor, Special Advisory Services Division of Commonwealth Secretariat, said that development would remain the central point of the Commonwealth.

The meeting also saw the signing of a MoU between Exim Bank of India and the Caribbean Association of Industry and Commerce.

The MoU speaks of co-operation in areas such as exchange of information on trade, business and investment opportunities, locating suitable joint venture and trade partners, exchange of publications and relevant literature, organising seminars and workshops and exchange of faculty.

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