SBIE Assignment

Sec A Group 9

Ankita Nag PGP13028

Ankurita Debnath PGP13030
Anna Mary Sangma PGP13033
Anurag Kumar PGP13039
Athena Chowdhury PGP13047
Chaitanya Aryan Ahlawat IPM01016
Q1)  What are the major issues surrounding Indian MSMEs?

= The major issues that Indian MSME’s are mentioned below:

1.Most of the MSME’s are facing lack of timely financial credit , procurement of raw material
at a competitive price, lack of infrastructures such as power , water, transport system, unskilled
manpower, lack of technology based service and marketing
2.In adequate organizational development such as unaware of technological advancement in
global market, lack of managerial skill, lack of technology driven education are burning issues
for MSME.
3. MSME’s follows traditional way of production process which decrease the productivity
level
4.International technological market is quite vulnerable. Finding the right technology in a right
manner is quite tough and adopting and implementing those technology are critical.
5.Also the scale of operation and the logistic process is not up to the mark
6.Higher competition such as MSME’s textile goods and rivals synthetic products, High terrif
plan which results in decreasing the profit of MSME’s.

Q.2) 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? 
= As discussed in the case, the importance of technology can give an upper hand to the MSMEs in
terms of competition in the global market, and how the MSMEs in India lack the technologies to
compete. However, MSMEs may fail to take complete advantage of globalization if some additional barriers
exist such as lack of digital access, insufficient resources or knowledge to innovate the product quality, inability to
lower the export prices, the higher unit cost of production, informational bottlenecks, inadequate strategy for
marketing and advertising. The quality of the product matters a lot in the international market as the countries that
are into SMEs have a better condition of technology, which is why India lacks this idea. The SMEs engaged in
developing countries normally produce traditional items (inferior quality) accompanied by low productivity. They
mainly cater to the small local markets. Hence, an accelerated technical change within a short span of time makes
SMEs difficult to establish a competitive advantage in the global market. Also mastering a new technology
involves acquiring new skills, materials and methods which can be uncertain and costly. Adopting and innovating
technology are critical to SMEs' internationalization success. SMEs need to be use the latest technologies to
generate efficient and high-quality production and compete in the global market. Which is why Technological
development is the most important government measure right now for promoting exports of the Indian coir
industry.