CICU Conducts Study on IT short coming for MSME

Suggests Measures to MSME Ministry to enable MSME to Digitalise
Ludhiana, April 11, 2017: S.Avtar Singh, President, Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana mentioned that, Indian MSME is at cross road its passing through crucial time hit by internal & external competition from Indian MSME, where as industries from adjoining countries like Thailand, China, Vietnam. Indian MSME operates in traditional way and mostly is family owned. MSME those adopted modern practise is business grown fast in last 20 years. But MSME operate with traditional management are in trouble.

S.Upkar Singh Ahuja General Secretary-CICU Mentioned that, if we compare Chinese MSME usages of IT both hardware & software is very high in terms of manufacturing & marketing which is a major gap these days. Chinese use marketing tools extensively like Websites, Bulk emails, Mobile Apps etc that is the reason Chinese are able to penetrate in market quickly in last 10 years.

IT Implementation is one of the very important factors for growth of business.

CICU conduct study of 200 sample units in MSME sector manufacture Bicycle Parts, Textile, Automotive Component, Sewing Machine & Hand Tools etc with turnover 10Lac to 5Cr.
· The study highlights only 27% have website.
· 73% operate on directory like Trade India, India Mart etc.
· 80% maintain account on computer, 20% still maintain records in books.
· Most alarming is only 9% are using advance software for Manufacture, R&D & New product development software. Rest of companies do not have infrastructure for that.
· For marketing 44% companies use Computer, Laptop, Mobile. Rest of companies do marketing in traditional method.

CICU suggest follow schemes to support MSME for digitalization.

Capacity building for hardware for MSME :- MSME should get loan at subsidy for computerization as cost of Computers, Laptops, Server is very high schemes similar to CLSS for up gradation.

Support for software:- Software is one of the crucial issues. Design & other high end software are very costly and beyond the reach of MSME. CICU urge that MSME Ministry should buy software in bulk at competitive price and make it available at affordable price to MSME units. It will help MSME units to develop new product, improve existing product & develop unique product in lesser time with better features.

Training Manpower for IT: - Trained manpower is one of the major bottlenecks. CICU urge MSME Ministry to provide a similar scheme like SDI (Skill Develop Initiate Scheme) Where Govt. pays training cost to industry. It will help in two ways, on one side it will help youth to get training on other side it will help industry to get trained manpower.
If MSME units are supported with above mention schemes they can sustain & grow in the market.

Centre for excellence (Digitalisation at various associations):- There should be centres for excellence pan India where latest hardware &software must be available for association members to adopt this techniques & technology as well.

CICU sent a detailed representation to Shri Kalraj Mishra, Union Cabinet Minister of MSME& a delegation consist of S. Avtar Singh (President-CICU),Mr. Daljeet Singh (Vice President) , S. Upkar Singh (General Secretary) and Mr. Honey Sethi- Organising Secretary, met with Mr. Vijay Kumar - Director MSME& discussed the industrial issues in detail.