Global retailers can impart skills to MSME workers: ICRIER

Micro, small and medium enterprises (MSMEs) in India can seek technical collaboration from overseas retailers to build a skilled workforce necessary to satisfy the quality norms set by foreign multi-brand retail firms for procurement of goods from the country, think-tank Indian Council for Research on International Economic Relations (ICRIER) has suggested.

 

Micro, small and medium enterprises (MSMEs) in India can seek technical collaboration from overseas retailers to build a skilled workforce necessary #

The suggestion was made in lines with the Indian Cabinet’s September 2012 decision to allow 51 percent foreign direct investment (FDI) in multi-brand retailing, which imposes a pre-condition that global retail chains penetrating in India through FDI route shall procure a minimum 30 percent of their requirements from Indian MSMEs.

 

Micro, small and medium enterprises (MSMEs) in India can seek technical collaboration from overseas retailers to build a skilled workforce necessary #

Discussing the issue of compliance of international quality norms for MSMEs, ICRIER Professor Arpita Mukherjee said there are some basic global norms that MSMEs willing to supply to overseas brands need to follow. However, variance is even observed in these standards, as at times companies set their own standards.

 

Micro, small and medium enterprises (MSMEs) in India can seek technical collaboration from overseas retailers to build a skilled workforce necessary #

Speaking at the ICRIER function in New Delhi, Ms. Mukherjee said she eyes good scope for the Government to collaborate in providing skill training, particularly vocational training to workers of MSMEs to enable them to converge with global norms.

 

Micro, small and medium enterprises (MSMEs) in India can seek technical collaboration from overseas retailers to build a skilled workforce necessary #

She said Indian entrepreneurs could join overseas retailers for the purpose and skill training may be imparted to MSME workers through the National Skill Development Council (NSDC).

 

Micro, small and medium enterprises (MSMEs) in India can seek technical collaboration from overseas retailers to build a skilled workforce necessary #

The Council, she said promotes skill development by channelizing creation of big, quality, for-profit vocational institutions, and extends financial assistance for launching for-profit vocational training initiatives.

 

Micro, small and medium enterprises (MSMEs) in India can seek technical collaboration from overseas retailers to build a skilled workforce necessary #

Ms. Mukherjee also said that several Indian and overseas firms even provide product design and technology to the MSMEs.

 

Micro, small and medium enterprises (MSMEs) in India can seek technical collaboration from overseas retailers to build a skilled workforce necessary #

Though the Cabinet has opened way for allowing 51 percent FDI in multi-brand retail, it has left it to the discretion of the state governments to allow establishment of such stores in their states.