4 days ago
MSMEs in Karnataka should not rely on other countries like China for machinery or maintenance: DKS
Karnataka's micro, small, and medium enterprises (MSMEs) should not be dependent on any country for machinery and their maintenance, said Deputy Chief Minister D.K. Shivakumar here on Friday.
Some MSME units here were dependent on Chinese machinery and now with issues around China and trade barriers introduced by the Donald Trump administration, they were not able to get their machines serviced on time and therefore suffered downtime and economic losses, he said at the opening session of a three-day India MSME Conclave here on Friday.
Citing an example of his own brother in this context, he said: 'My brother started a silk-related MSME in Kanakapura and signed an agreement with a Chinese company. But owing to visa issues, technology training could not happen. Still, he is determined to make it work. But, we must reduce dependency on others.'
Speaking on the occasion, Shobha Karandlaje, Union Minister of State for Micro, Small and Medium Enterprises (MSME) and Labour and Employment, said the sector which was the backbone of India's economy has been facing diverse issues such as funding, technology access, and a lack of skill development.
'Governments have to continue investing in MSMEs for the country to grow. The MSME sector accounted for 30% of the GDP, provided employment to over 26 crore youth, and accounted for nearly 45% of the manufacturing output,'' she elaborated.
Ms. Karandlaje insisted that there has to be massive investments in infrastructure, especially in proper roads, electricity, water and allied services for the MSMEs to thrive. Such investments should happen not just in big cities but also across tier-2 and tier- 3 cities.
Infrastructure woes
Acknowledging the critical role played by MSMEs in the economic growth of both the State and the country as a whole, he said the governments have a responsibility to address their concerns and provide necessary support.
On the government's ongoing and upcoming investments in infrastructure, he said these include ₹44,000 crore towards metro expansion; ₹37,000 crore to build tunnel roads; ₹17,000 crore for phase one of these two projects, and ₹14,000 crore for elevated corridors. 'In the next four to five years, over ₹1 lakh crore will be invested in Bengaluru's development,' he promised.
The conclave is being organised by Karnataka Small Scale Industries Association (KASSIA); the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) and the Peenya Industries Association (PIA) in association with State Bank of India.
