Canada and India to boost business between the two countries by establishing direct linkages of companies

Combined Strengths of India’s and Canada’s Services Sectors Complement each other

The Union Minister for Micro, Small and Medium Enterprises, Shri Virbhadra Singh at the

Round Table Conference of Indo-Canada Chamber of Commerce “India-Canada Partnership:

The Way Forward”, in New Delhi on January 06, 2012. Photo © PIB

NEW DELHI (PIB) ---Canadian Firms can collaborate with those in India in Order to Harness each others’ Strengths in Developing Innovative Products and Services

To strengthen business relations between India and Canada, the Indo Canada Chamber of Commerce along with Confederation of Indian Industry and India-Canada Business Chamber, a Round Table was held here. The purpose was to establish direct linkages between Canadian and Indian companies to boost business between the two countries.

Welcoming all the Canadian guest and delegates the Minister of Micro Small & Medium Enterprises, Shri Virbhadra Singh said, “it gives me immense pleasure to be here for the Roundtable. I congratulate the organizers for putting together this event that would help in enhancing bilateral engagements between Indian and Canadian MSMEs. We should indeed take a leaf out of the Canadian tradition of strong government-Industry interface. He urged the delegates to avail the benefits of the opportunities that this interaction provides”.

The Minister further added, “I would like to give you a snapshot of the MSME sector in India. The Micro, Small and Medium Sector has emerged as an engine of growth of the Indian Economy. It has contributed significantly towards India’s robust economic growth even in the face of the global financial crisis. The Sector consisting of 26.1 million units, as of today, provides employment to over 60 million persons. The Sector through more than 6,000 products contributes about 8% to GDP besides 45% to the total manufacturing output and 40% to the exports from the country. The Sector has also the distinction of creating comparatively much more employment per unit of investment. The Sector is expected to perform an important role during the 12th Five Year Plan Period (2012-17) in enabling the country to achieve the envisaged overall growth rate of 9% during the Plan. The Government has been providing support and sustenance to the Sector through a plethora of programmes and policies. I would also like to inform the foreign delegates about the robust and efficient legal institutional framework. Further, India is perhaps one of the few countries in the world which has enacted an exclusive act for MSME sector. Therefore, investment in the sector is quite secure and has the protection of a well defined act”.

Shri Virbhadra Singh also said, “The ministry has taken several initiatives to promote the growth and development of MSMEs in India. A recently initiated program that would be of interest to you is the National Manufacturing Competitiveness Programme (NMCP) which aims to develop global competitiveness among Indian MSMEs. The Programme envisages substantial investment towards enhancing the entire value chain of the MSME sector. All the 10 components of NMCP have already been operationalised and are likely to spur innovation and growth in the MSME sector. These include Quality Management Systems and Quality Technology Tools, Design Clinic Scheme, Building Awareness on IPRs, Support for Entrepreneurial and Managerial Development, Marketing Support/Assistance to MSMEs, Setting up of New Mini Tool Room and Lean Manufacturing Competitiveness Scheme. What will be of more interest to you is that the Programme will be implemented through Public-Private-Partnership mode with close physical and financial participation of the private sector. I invite our Canadian friends to participate in this programme”.

Applauding the international cooperation the Minister said, “one of the principal drivers of India’s economic growth has been the services sector which predominantly comprises of MSMEs. I am told that the services sector is Canada’s largest and fastest growing economic component. The combined strengths of Canada’s and India’s respective services sectors largely complement each other with opportunities existing for further trade and investment especially in financial services and knowledge-based services. Canadian firms can collaborate with those in India in order to harness each others’ strengths in developing innovative products and services”.

“MSMEs play an important role in Indian manufacturing sector. In the current competitive scenario technology upgradation is the only way to improve the quality and cost competitiveness of MSMEs. It is, therefore, imperative for them to imbibe technology to stay competitive and become global. Several Indian MSMEs have indeed started implementing various technologies aimed at improving efficiency and productivity of their operations. The MSMEs in India are looking to exploit such opportunities in countries like Canada through joint ventures, collaboration and technical tie-ups. Segments such as machine tools, pharmaceuticals, medical equipments, textile machinery, mining equipments, auto components etc. provide excellent opportunities for such collaborations and tie-ups”.

The MSME sector is a unique area for collaboration between Canada and India, the Minister said, “It is extremely heartening to see the interest of Canadian Industry in Indian MSMEs. Let us work hand-in-hand to intensify bilateral cooperation and encourage our small enterprises to prosper and flourish through greater mutual cooperation”.

Present on the occasion were Stewart Beck, High Commissioner of Canada to India Canadian High Commission, Satish Thakkar, President, Indo-Canada Chamber of Commerce, Nicolas Banerjee-Brodeur, Heads Contracts & Legal Affairs, Bombardier Transportation & Jawed Ashraf, Joint Secretary, MEA.