PM's speech at the National Awards function for Micro, Small and Medium Enterprises
Speaker: Dr.Manmohan Singh
Date: August 30, 2007 New Delhi

PM's speech at the National Awards function for Micro, Small and Medium Enterprises Hindi Version "I take this opportunity to congratulate all the winners of National Awards at this function today. I commend my colleague Shri Mahabir Prasadji, and his Ministry, for instituting these awards. A few months back, I was at an award ceremony for small and medium enterprises (SMEs) in Mumbai and I was greatly impressed by the tremendous achievements of those award winners as well. I hope awards like these will encourage more and more of our entrepreneurs to strive harder and contribute to our country's economic and social development. The nominations for today's awards and for the earlier Mumbai awards demonstrate that the small and medium enterprises sector in India has truly come into its own. Gone are the days when the business limelight was reserved almost entirely for the captains in the corporate sector and SMEs remained in the shadows. India's SME business leaders now stand proudly on their own feet. I affirm our Government's solemn commitment to their growth and progress in years to come. Micro and small enterprises provide employment to almost 41 million people in our country. Including the handloom and handicraft sector, the total employment provided by them is over 60 million. Hence, from the point of view of our people's livelihood and well-being this sector is of tremendous importance. The fact that SMEs are widely dispersed across the entire country also makes them highly important from a regional developmental perspective and as a means to promote balanced and equitable growth all over the country. The SME sector has contributed to the growth of new industries as well as new industrial centres. There is no doubt that Governmental and institutional support provided to this sector through incentives, infrastructural facilities and other assistance has helped. But what has really made a difference is the spirit of enterprise and creativity of our entrepreneurs in this sector. Nowhere is this spirit of enterprise, this willingness to take risk and an eagerness to strike out on one's own to seek a fortune more in evidence than in our small and medium enterprises sector. It is this animal spirit which makes the SME sector the most dynamic in our economy and worthy of our support and encouragement. Our Government has shown a consistent commitment to the growth and welfare of small and medium enterprises. A significant contribution of our Government is the enactment of the 'Micro, Small and Medium Enterprises Development Act'. It aims to improve the competitiveness of these enterprises and contribute to their healthy growth. I hope the provisions of this Act will benefit all your firms in your business ventures. Our Government has also announced a comprehensive Package for the Promotion of Micro and Small Enterprises. This should also contribute to the realization of this objective. Our government has charted a new strategy based on Cluster Development that offers a holistic and integrated approach to SME sector's development. We have also taken up skill development as a high priority area. I have recently announced our decision to set up a National Mission on Vocational Education and Skill Development, and we intend to fund more polytechnics and ITIs to address the growing demand for skilled manpower of our enterprises. I am aware of the fact that a major area of concern of our small and medium enterprises is access to affordable credit. To improve the delivery of credit, we have announced a 'Policy Package for Stepping up Credit to SMEs'. I hope we can double the credit flow to this sector within a period of five years. I urge our banks and financial institutions to come forward and support and nurse SMEs, especially through risk and venture capital support. We have also set up a Credit Guarantee Fund to provide relief to those small entrepreneurs who are unable to pledge collateral security. I understand that this scheme has also been able to overcome the initial inhibition of bankers and has steadily gained acceptance. I do believe that SMEs have demonstrated their ability to be globally competitive. The National Manufacturing Competitiveness Council has also recognized this fact and has come forward with new ideas to further enhance the competitiveness of this vital sector. The fact that SMEs have done well in terms of their share of exports shows that we have a globally competitive sector. Our government has set up, for the first time, a statutory National Board for Micro, Small and Medium Enterprises, bringing together representatives of SMEs along with policy-makers, bankers, trade union leaders and others. I sincerely hope the Board will guide policy and help our enterprises become more competitive and efficient. Our Government is open to new ideas on how we can spread industrialization across the country and encourage new enterprises. I invite all enterprises in this sector to pay greater attention to quality, reduction of cost and to the welfare of their employees and workers. International experience shows that it is possible for SMEs to remain globally competitive even in an increasingly integrated global market. Our Government recognizes the importance of extending social security to workers in the micro and small enterprises sector. As a first step in this direction, we have declared our intention to provide an old age pension to all citizens above the age of 65 and living below the poverty line. We will also provide life and disability cover to one earning member in each family so that they and their families can get over the consequences of injury or death. We are also working on a health insurance model so that our poor do not have to bear the high cost of medical care. I am sure these initiatives will benefit all workers in the SME sector in particular. Through these three initiatives, we intend to ensure a minimum level of social safety for all of them. I once again congratulate the award winners on their selection and convey my best wishes for their future growth and higher levels of achievement in the service of the people of India. I hope these awards will inspire others to greater effort as well."