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Thursday, October 24, 2019

SMEs in India facing a big challege..


Today I met a small scale electronics industry owner. We were discussing about how difficult or easy it is to run small scale electronics industry in India.
From academia perspective,  situation today is that the number of students seeking admission to engineering is decreasing. Day by day it’s becoming difficult for the management to run a college with these inadequate numbers of students.  Even IIT seats are remaining vacant due to multiple career options available today. Skilled manpower is one of the main problems of the small scale industry. SMEs can not afford salaries of  IIT and NIT graduates. Engineers who have BE / BTech degrees from other engineering colleges leave their job as soon as they  get a bit of salary hike elsewhere. Therefore the efforts taken on their training are wasted and regular work in the industry gets affected. Most SMEs therefore rely  on diploma engineers. But looking at the low percentage of the students opting for diploma education,  SMEs are going to face a big problem in  coming days.

During the discussion, he said that even today, there is a real need for skilled engineers. So the assumption that there are no jobs available is not entirely true. If 'proper' skill training is imparted during diploma education, these students will get jobs easily and the problem of skilled manpower in the industry will be solved. Another possibility that came in my mind was to creation of capacities within academic institutions for supporting the growth of SMEs in Electronics Sector. The same holds true for other sectors as well. 

While the government on the one hand promotes SMEs through schemes like 'Make in India', 'Startup India', this problem of skilled manpower needs to be looked at  more seriously. SMEs face steep competition due to  cheap Chinese manufacturing and  advanced technology available from outside the country. He was also skeptical if his next generation would carry forward his  legacy due to the difficulties that they are facing in already competitive industry!



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