Pre-Reading, Session 09

Submitted by: Shweta Goyal, PGP12213

Q1. What are the major issues surrounding Indian MSMEs? (6 bullet points)

1. MSME’s are facing technological backwardness, up to date information.

2. Lack of access of timely credit, financial infrastructure and high cost of credit.
3. High tarrifs imposed by importing nations which make MSME’s less competitive.
4. Inadequate infrastructure facilities.
5. Insufficient knowledge for innovation, low Research and Development.
6. Procurement of raw materials, availability of economic resources.

Q2. With reference to the case description, which one do you think is the most important
government measure for promoting exports of the Indian coir industry, and why? (up to 300
words)

The findings in the case indicate that although exports have increased, the export earnings have
not increased much over the past years. It is facing tough competition from synthetic exporters
especially from China. Modernization in coir industry can help make it competitive in global
market. To achieve this, the most important measure taken by government are initiatives in
technological advancement. MSME’s producing poor or subquality product using obsolete
technologies will not be able to compete in global market. To avoid such issues, India should
invest in technological infrastructure building. The digital India initiative by government of
India is ensuring greater participation of MSME’s in Information, Communication and
Telecommunication (ICT). The use of technologies also enables access to skills, better job
recruitment, connecting with knowledge partners, which help in developing a greater product.
Apart from this, exporter need to understand the taste and preferences of consumers in
international market. With the help of superior technology, consumer insights can be generated
to predict demand. Technological transfer solutions can be through FDI, technology licensing,
technology sale. Measures in technological advancement will surely help achieve increase in
export earnings by making Coir industry more competitive in global market.