Chat session with Hon'ble Minister Ms. Vasundhara Raje

The following is the transcript of the Chat session with Hon'ble Minister Ms. Vasundhara Raje held on Feb. 21, 2002

Topic of Discussion : "Globalization and its impact on the Small Scale Sector"
Time : 3 P.M. to 4 P.M. IST on 21st February 2002

There were 140 questions presented to the minister. Most of them, were not taken-up due to no direct relevance to the subject. Some of them could not be answered due to lack of time. Please click here to view the answers to the questions which could not be taken up during the chat session. The list of online members during the chat session can be viewed by clicking here.

For a copy of the transcript please send your request to chat administrator.

rajan :

What will be the role of SISI in the task of supporting SSI to face WTO regulations ?

  We are in the process of upgrading the role of SISIs as Technology Resource Centres, for Dissemination of technology, information and capacity building.

adi :

Why doesn't the government put anti dumping duty even before cheap imports come in?

  Anti dumping duty by its very definition comes into place only when dumping takes place and it is proven. It cannot be pre-emptive. We need concrete data about prices and costs and therefore, it works only when unfair and cheap imports actually come in.

rajan :

The tool room training centres help supporting to face competition due to Globalisation..need more of them...and to make them work efficiently..How do we do it ?

  I have travelled to some of the tool rooms and watched them organise some training programmes. I belive they are very well qualified and all of them are ISO 9002 certified.

hemant :

SSIs have been suffering due to imports from Nepal. Is your ministry doing anything about this?

  We are in the middle of renegotiating our trade treaty with Nepal and are hopeful that concerns of SSIs will get addressed in the process. I have personally written to the Prime Minister and appriased the Finance Minister and Commerce Minister of our concerns.

sambit :

Has competition from China and other companies adversely affected Indian SSIs? What is government doing to safe-gaurd the interests of local manufacturers?

  Cheap imports can be a threat from any country, not just from China. However, for sectors where Indian SSIs were predominant, we have been very careful by taking proactive action such as imposition of mandatory standards as well as imposing anti dumping duties.
Nevertheless, it is also important that cheaper imports become a trigger for SSIs, to reduce their own cost of production.

smats :

What steps have been taken by the SSI ministry for meeting the threat of globalisation?

  We presented a Comprehensive Policy Package for the Small Scale Sector. We have focussed in the areas of Poiicy, Excise, Technology, Marketing, Credit and streamlining of regulation.

fosmi :

No doubt globalisation has a definate impact on rapid penetration to international markets but whether indian machinery is that competent to make a solid presence in the old market as compare to other advanced country?

  The fact that 35% of India's export comes form SSI Sector, which include engineering goods makes it that we are competent to make a solid presence and that is why the Indian SSI Sector is competitive per se,. However we have to live with the realties of WTO and continuously upgrade ourselves. In this context we have launched a National Programme on the development of machine tools in India. That will upgrade technology in the sector and prove a greate marketing linkages.

sonia :

What is the impact of Globalisation on SSI ? How can SSIs prepare themselves for global market?
  Access to market, availability of raw material at cheaper rates, lower custom duties for export in other countries. Greater chances of being an out sourcing center. The strategy for success is that you have to be competitive and quality conscious.

s.s.singhania :

On the one hand, Exim Policy 2000-2001 has put 714 items on to the OGL(open General Licence) List and QR's on the rest 715 items have been removed in 2001-2002 Exim Policy and thus SSI reservation List comprising 576 items has become a misnomer as all these items of this list can now be imported freely.When India is continuously under pressure by the developed nations to withdraw QR's and be" WTO compatible ", according to our recent report of department of commerce, the India's three largest trading partners U.S.A., Japan, E.U. erect majority of non - tariff barriers (NTB) to safeguard their domestic industries. United Nations conference on trade and development estimate shows that in 1999 44% of India's value of exports worth around $35 billion faced NTBs in the U.S. Would you kindly like to point out the reasons that - when we are following the verdict of DCs for being " WTO compatible " why not their safeguard measures for protecting the domestic industries are not being followed in India?

  Hello, Mr. Singhania. Why have you taken so much time to log on. Can we not discuss this personally in your next visit to Delhi Your question will be kept stored as it is one of strategic importance to our Ministry. I am waiting to hear from you later.

sambit :

Do you have any international representation to promote Indian SSIs abroad?

  NSIC's Office and ITPO'Office and Indian Embassies.

pramod :

I am really amazed by the value that small scale industries are contributing to the total industrial output. What is your target for the amount of exports originating from the small scale sector, and how do you plan to achieve the target?

  As of today, we are exporting 35% of the total exports of India. The SSI outreach is enormous and through the new policies that have been put in place through the comprehensive policy package we are hopeful of covering larger and larger export markets.

rajan :

What is the impact of Globalization on hand tools industry in Jalandhar?

  We have just conducted a sectoral study in Jallandhar on the impact of WTO on the HandTool Sector and we are in the process of finalising a national programme to support this industry. I would also like to mention that we have recently raised the investment limit for the Hand Tool Sector to Rs. 5 crores.

ronita :

How do Indian SSIs compare with the International quality of output? Are there any steps taken to ensure a good quality of output?

  The fact that we export to the tune of 35% of the total Indian exports means that we are internationally competitive.
As far as ensuring quality output we have the policy of ISO9002 to the tune of 75000/- subsidy for any SSI obtaining this certification. We have also awards for outstanding SSI units in quality.

sonia :

How can small scale industries market globally? Why doesn't your site host some products for International marketing?

  The small scale sector is supported by our Ministry for partiiicpation in International Fairs. You can join in electronic procurement chains for which there are many e-commerce portals.
To clarify we are a knowlege portal. There are many private e-commerce portals.

ronita :

Are there any initiatives for entrepreneuership development to prepare SSIs in the global scenario?

  We have three national level an 18 state level entrepreneurship development institutes.
This activity is also being carried on by private institutions.
The course content at these institutes takes care of the new skills required for global competitiveness.

lubnagpur :

Madam, In the SSI Sector tiny units are big in numbers and they contribute more in employment and production, but in the last 50 years no one takes initiative to strengthen them. Now SSI ministry is the only hope. In this globalization era, these units are not very much ready for facing global competition. So it badly hits tiny units. We must save them for good health of our country. Taxes, complicated laws and interest rates are common factors of difficulties. If you agree with this, what are the steps your ministry is taking to strengthen this sector for facing globalization?

  We have a seprate policy for the tiny industries.

fosmi :

To make greater impact on globalisation whether Hon'ble Minister is considering sponsoring Multi-Product trade deligations seperately from each region to propagate product excellence ?

  The participation in national and international fairs is in many cases multi-product In some cases sector-specific exhibitions are also organised. We have several buyer-seller meets which are done on a regional basis.
We would be happy to consider any specific request in this regard.

neha :

How did you get the idea of starting this site for small scale industries? I think it's a novel step and other government departments should also take inspiration from you.

  I am delighted with your compliments. Come back again please. These innovative ideas come naturally to me.

Bhandariji :

Good Afternoon, I am Shanti Bhandari, President, The SSI Association, Kota. We have been facing recession for the last 4 years and now we are finding it difficult even to survive. May we request you to kindly make some special for survival ?

  Bhandariji, You and the Kota Association have a great association with us all. Every time you have had a specific problem, you will agree that we have done our best to solve it.
You can continue to bank on us.

biju :

Have Indian SSIs been able to get access to new market overseas ?

  Depending upon the need, the quest for new markets is an continous process and the Indian SSI sector has been proactive on this score.

ashishraj :

moderator :

We enjoyed thoroughly and highly appreciate your initiative. May we request you to kindly make this a more regular feature, like once every week ?
Thank you for joining us madam! The response to the chat has been very exciting. We still a lot many more questions from SSI entreprenuers and associations. Will you like to leave a message for them?

  Thank you all. That was a most interesting session. I look forward to doing this once a quarter. I enjoyed every moment of this. I hope you all did too.