New Delhi, Sept 30: The WTO regime is not a threat to small and medium enterprises (SMEs) if the consumption rate within the country can be increased.
The ratio between import and domestic consumption can at most cover 5 per cent of the market, leaving 95 per cent free for the domestic industry, according to WTO experts who spoke at a seminar organised by Confederation of Indian Industry (CII).
“The Indian SMEs will need to increase their competitiveness. They need to look at the possible market expansion within the country—outside competition can never snatch the full market from Indian SMEs,” the Confederation of Indian Industry’s senior advisor on international trade policy T. K. Bhaumik said.
“Individually, if SMEs need to be domestically competitive, they need to do small things properly, which is known as value addition. If they are strong enough, then the sector that contributes 45 per cent of India’s exports and which is increasing at a rate of 10 per cent per year cannot be wiped out.”