The Confederation of Indian Industries (CII) is preparing a white paper to draw action plan for guiding itself to proceed for the remedial measures for the betterment of pharma SME with different ministries. However, the national industries body has shrunk itself from involving all the concerned associations from the SME sector for a joint initiative while including only just a couple of organizations like CIPI.
The CII held a meeting recently to take stock of the issues in the sector after it set up a sub-committee to chart out recommendations. However, it was attended by only a few including CIPI president T S Jaishankar, who is heading the task force, and B Sethu Raman of PMA, Tamil Nadu. The associations like SPIC and FOPE were conspicuous by their absence in the effort, which should otherwise be a joint attempt to save the sector, observers felt.
The meeting held the view that strengths of the pharma SME were technology, skilled manpower, machinery and quality product at cheaper prices. They also have the capability to address the global needs. However coming to the weakness, it was felt that price gap and constraints for the adequate availability of funds were afflicting them. A change was required in the perception of quality and very few SME units qualify for WHO GMP. There is a need to train and revive sick SME and there is lack of awareness among the SME about the business opportunities around the world, the meeting felt.
"Lastly, there is an attitude of not wanting to grow big. Opportunities wise, India is a market of hundred thousand crore. There is broader scope of business from a domestic market especially rural sector and in the developing countries. A major threat is the price gap and the non-availability of proper order from the government and the non-government sector," it was pointed out.
However, the associations outside the CII umbrella felt that indirectly, the big players wanted to paint a bad picture of the SME sector by highlighting the flip points of the industry to choke the growth rather than pressing on the required measures from the government. "It is not true that only a few SME units qualify for WHO and there is lack of awareness about the business opportunities or we have an attitudinal problem," a leader said, without wanting to be named.
Still on the positive side, the CII felt that government norms barring companies below Rs 20 crore turnover from attending government tenders must be revised to accommodate smaller companies. It has also formed a task forces headed by A S Krishna to work on the issues related to DPCO. It was also decided to take up the issue of spurious drugs bill at a later phase of discussion with the government officials.
It was also felt that platform should be created for larger companies to outsource part of production to SME. "US SME law is very effective and similar initiative has to be taken up in India. Banks must be made aware of the government schemes to provide for uplift of SME. Awareness programmes should be initiated to promote TUFS Scheme," the meeting felt.