The Hindu : Karnataka / Bangalore News : Kalam calls for increasing small scale sector exports

Online edition of India's National Newspaper
Saturday, Sep 29, 2007
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Karnataka

Karnataka - Bangalore

Kalam calls for increasing small scale sector exports

Staff Reporter

Exports now stand at $ 20 billion a year
Special focus should be on garments, processed foods: Kalam

Bangalore: Exports from the small-scale sector must be given a boost, said the former President A.P.J Abdul Kalam, here on Friday.

Speaking at the formal launch of the website of the Karnataka Small Scale Industries Association (KASSIA), Dr. Kalam said, “Small-scale industries contribute to an export of over $ 20 billion a year. A drive is required to increase exports from this sector to at least $ 40 billion within the next five years.”

He identified garments, processed foods, pharmaceutical and cosmetic products as areas where exports must be given special focus. Dr. Kalam expressed concern at the large number of small-scale units that remained unregistered. “Presently, the small-scale sector has 12 million units, employing around 28 million people. Of them, 10 million units employing around 20 million people are unregistered units.” There is a need to get all units registered so that the sector’s workers could be provided benefits that workers in the organised sector of the economy were entitled to, he added.

Speaking about the findings of the RBI that as many as 1.4 lakh small scale units were sick, he said it was essential to revive sick units by providing the right technology at the right time and by giving them financial support.

The Ministry of Small Scale Industries must initiate a “mission mode” programme to revive these sick units, he said, adding that “nursing activity should commence now, failing which even these units will become non-revivable.”

He recommended a national survey to “establish the total number of small-scale industries in the country, their performance characteristics and their problems”.

Innovation, Dr. Kalam stressed, was paramount to bring excellence in products. This capacity, he said, “is distinct from purely scientific or technical achievements and focuses on the economic application of new technology.”

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