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BW Businessworld

FTP Needs strategic Thrust For Success: FISME

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The Federation of Indian Micro and Small & Medium Enterprises (FISME), India's leading MSME organization, has welcomed the seven-point strategy to boost India's exports in the new Foreign Trade Policy but has pointed out that these measures are at best tactical and have to be supplemented with a strategic thrust to take advantage of the depreciation of the rupee which is here to stay in the short and medium term.

FISME traces its origin in 1967 when the National Alliance of Young Entrepreneurs (NAYE) was established to promote small industries. In the post-liberalisation era, NAYE along with eight state level associations formed FISME in 1995.

FISME is the progressive face of Indian MSMEs and is regarded as such by the Government of India. It is a member of the National MSME Board formed under the MSME Act 2006. FISME is consulted by SME policy making set-up of the country and also works in close cooperation with the Ministry of Micro, Small & Medium Enterprises as well as major multilateral and bilateral bodies in India such as UNIDO, ILO, UNCTAD, DFID, GTZ etc. Supported by UNCTAD, DFID and Ministry of Commerce & Industry, as a Tier-I partner, FISME is leading 22 provincial SME bodies in 18 states.

"We welcome the initiatives announced in the policy, especially the decision to extend the 2 per cent interest subvention scheme for another year and expand its coverage to include other labour intensive sectors namely toys, sports goods, processed agricultural products and ready-made garments, but these initiatives are at best tactical not strategic" said FISME President V.K. Agarwal.

He further added that "the depreciation of the rupee – over 27 per cent fall during the last 13 months,is an opportunity that should not be allowed to go waste. It does not often happen that fall in theIndian currency is the highest among our competitors. Now that Indian exports have become more competitive, a well thought-out strategy is needed to push our products and services in countrieswhere we have been outcompeted in several product categories especially in ASEAN, African andLatin American markets."