New Delhi: – SBI ECOWRAP has reported ‘There is a rising anti-China sentiment, in the world, over the Coronavirus issue and India needs to provide the right impetus to the Small and Medium Enterprises (SME) for exports. If India can develop the capability and take over the Chinese share in global trade, the Indian exports can increase. There is a minimum expectation that the rise in Indian exports will be anywhere between $20 to $193 billion.’ A senior government official said, against this background, that the government will soon be announcing package for all the sectors including the SME sector.
All the countries are distraught with China, who is responsible for the Coronavirus pandemic. India should exploit the situation for its benefits. The Indian government too is wooing the companies preparing to leave China. But as per experts, there is also a need to provide the right impetus to the SME sector.
SME sector contributes nearly 29% to the Indian growth rate. 48% of the Indian exports are from this sector. The maximum number of jobs and employment opportunities are created available in this sector. But currently, the industry is going through an awful phase. There is a demand to provide special attention to this sector to provide a stimulus to the economy. The SBI ECOWRAP report is published against this background.
The report says that there is a need that the government provides an impetus to the SME sector. As compared to China, among the companies manufacturing household goods, the situation of the textile manufacturers, in the SME sector, is somewhat better. But China is ahead of India, in the export of machinery and equipment necessary in the household goods manufacturing. But India should take advantage of the current situation and try and increase exports. India lags China by a distance, even in the food production and processing industry. The SBI ECOWRAP report claims that if the government provides special support in this sector, the companies in this sector can compete with China.
The report suggests that the government should pay attention to increasing the capacity in this sector. The benefits will not be immediate in the year 2020, but the long-term advantage should be kept in view. India should create its place in the market, slipping out of Chinese hands. In the most adverse conditions too, India can increase its exports anywhere between $20 to $193 billion.