The limiting & facilitating factors for export through Textile, Chemical & Pharmaceutical SMEs: In Indian perspective

Abstract

The SMEs are playing a strategic role in economic growth and development of the country through their contribution to the creation of wealth, employment and income generation. The Textile & Chemical Industries are the leading segment in the SME sector. For the Indian economy textiles & chemical segments plays a major role. These segment of SMEs are exposed to the competitive pressures either directly from the market place or indirectly passed on from their higher ups in the chain. However, with SMEs dynamism, flexibility and innovative drive they are increasingly focusing on improved production methods, penetrative marketing strategies and management capabilities to continue and build up their operations. The Textiles exports consists of Fabrics, Ready-made garments, Cotton textiles, Textiles made from man-made fiber, Wool and Woolen goods, Silk, Handicrafts etc. Out of which man-made textiles and silk are showing the highest growth rate. The Indian Chemical Industry comprises both small and large-scale units. The fiscal concessions granted to the small-scale sector in mid-eighties led to establishment of a large number of units in the Small Scale Industries (SSI) sector. Currently, the Indian Chemical industry is in the midst of a phase of major restructuring and consolidation. With the shift in emphasis on product innovation, brand building and environmental friendliness, this industry is increasingly moving towards greater customer orientation. Even though India enjoys an abundant supply of basic raw materials, it will have to build upon technical services and marketing capabilities to face global competition and increase its share of exports. With the initiation of planned economy from 1951 and Government of India's subsequent industrial policy earmarked a special role for small-scale industries and medium scale industries in the Indian economy. Currently Textile & Chemical SMEs are facing the challenge of increased competition on account of new open markets. In such a context the ability to export is becoming a critical factor in the development and long term survival of many SMEs.