Director General's Desk - 2009
January 2009
Possessing skills is necessary
and essential for sustaining
human life. When I say skills, I
have in mind vocational skills
that enable you to meet the
routine as well as special needs
of the society in which you live. 
India has a long history of a wide range of such skills, which kept the communities down the centuries in good comfort. A look at this history would show a flowing contour of creativity and innovation that had added new facilities and made the activities of life that much more refined. The fascinating handlooms, enchanting handicrafts, the fine and lovely workmanship of antique models of gold and diamond jewellery, the intricately engraved silverware, the imposing brassware and household accessories, copper-smithy, tin-smithy, black-smithy – the list can go on and on – only show the finesse of our legacy of skills, of which we can justly be proud. The grandmasters of these skills were held in high esteem in the centuries bygone.
TUnfortunately, the political upheavals that made history on the one hand and the sweeping winds of westernisation on the other have pushed most of these fine skills into the wings. They no longer suffice the needs of today’s society. The huge strides of technological advances and the ever increasing interface between societies and cultures across the globe have been constantly throwing up new needs, called for by new trends of living. The rise of open societies, mass education system that put a halo on lettered learning and white-collar employment have further overshadowed the social esteem of vocational skills.
In consequence of these inevitable social changes, today we find ourselves at a pass where vocational skills are in great demand and skilled workers in such short supply, that our entrepreneurs are crying high for skilled human resource. Also, vocational skills have come to be perceived as a huge asset to livelihood promotion, and as essential to taking up income generating activities and enterprise startup, all of which have surfaced as suitable and effective strategies for bettering the living conditions of the large segments of the poor, bringing them above the poverty line.
Taking cognisance of the near impasse situation, our Prime Minister has come up with the proposal of National Skill Development Mission to ameliorate the condition on war footing, and formulated the skill development programme (SDP). The SDP visualises the upgradation of skill sets of the existing workforce as also to impart updated state-ofthe- art skills to young career-seekers, with the ultimate aim of expanding the pool of skilled human resource of our country.
In our country, conventionally the Industrial Training Institutes (ITIs) have been the major skill-disseminating vehicle, with polytechnics throwing in their contribution. For the Eleventh Plan period, a gamut of 1,376 government ITIs have been slated to be upgraded through public-private partnership mode. The model will be a tripartite one, with state governments, Central government, and industry partner comprising the three components.
The upgraded ITIs and polytechnics are expected to turn out sizeable batches of young people trained in sophisticated skills to meet the needs emerging from the application of advanced technologies. Contiguously, this outcome would also meet the need for skilled manpower equipped with latest skill sets, acutely felt by the existing as well as aspiring entrepreneurs.
Further, equipping the youth with advanced and gainfully employable skills is likely to motivate them to opt for self-enterprise ventures, thus contributing to bringing down unemployment figures. For those who are not orientated thus, the skills would ensure a speedy appointment in waged positions. This holds true for both low end skills and high end skills. For instance, every year our technological institutions turn out five to six lakhs of engineering graduates, 50% of whom are from the southern states. These young raw engineers can also be brought under the SDP to be given a ‘practical finish’. This would help the industry in a big way.
We at ni-msme have been associated skill development with MSME for over a decade now. Under the CRR programme, we have been imparting skills to the rationalised employees of both public and private sector enterprises in Andhra Pradesh and Karnataka, so that their productive energy would not go waste. The initiative has been eminently successful, with high rates of start-up. We have also been ensuring skill upgradation under cluster development programme, as in the case of the two handloom clusters at Mubarakpur and Barabanki. Another such involvement has been in the area of food processing enterprises for women, again in Andhra Pradesh and Karnataka.
On the flip side, we are also associated with imparting
of multi-media skills in animation, graphics, and visual effects. I perceive skill development as a continuous process,
and this Institute endeavours to support the Government
of India in giving direction to the mind-set of the youth
through its initiatives. 
February 2009
In the past nearly two decades
since the economic reforms and
WTO incidence, the concept of
Intellectual Property Rights (IPR)
has loomed as a powerful
presence on the horizon of MSMEs. Yet our small
enterprises as also our science and technology community
have been struggling hard to negotiate with this unavoidable
and inevitable reality. We are only too well aware of those
several instances where our scientists have not been able
to protect our right to products of our traditional heritage,
which we have been using quite casually from times
immemorial. There have been a few successes but the
numerous failures eclipse them.
There is every possibility that the innovations of our present generation of entrepreneurs and technologists too may suffer the same fate, if we do not wake up to the challenge of the times. This is because our entrepreneurs and scientists have taken our claim to our own innovations – heritage or otherwise – as undisputable and for granted.
Why do we face this calamity? To answer this question, we have to probe the situation deeply. Where our traditional products are concerned, we have been living with them and practising or using them for so long that they are an inseparable part of our lifestyle and intellectual fabric. So, it is not possible for us to even conceive of the idea that any other entity could lay claim to it; therefore we rest comfortably while someone else borrows it from us and calls it their own, acquires rights to it, restricting our own use of it.
Our current innovations are in even greater danger if our entrepreneurs continue to disregard the significance of IPR: for the current innovations we cannot even make a plea of ownership on grounds of traditional usage. Matters concerning the creation, usage, ownership, commercialisation, lending and borrowing, protection and transfer of rights, valuation and exploitation of IPR are already proving to be critical to survival and flourishing of MSMEs as also to the S&T community
The ni-msme intellectuals have perceived this red signal long since, and have been formulating interventions to educate the small entrepreneurs, to create awareness among them regarding the importance of IPR in the scheme of enterprise success. In fact, ni-msme has constituted an exclusive centre to concentrate on IPR needs of MSMEs – as we are all aware, MSMEs are the growth engine of our economy, with their massive contribution to employment and exports, among others.
The Centre for IPR (C-IPR) of ni-msme focuses mainly on spreading IP literacy among our enterprise makers and those involved with enterprise creation on the one hand, and introducing IP culture in the society, particularly the MSME stakeholders.
In this context, it is worth recalling here that in August 2007, the Institute had played host to a week-long workshop conducted by World Intellectual Property Organisation (WIPO) with the theme “Train the Trainers in IPRs”. The event had drawn participation from eighteen officers representing the DC (MSME), MSME-DIs, Coir Board, NIESBUD, IIE, NSIC, apart from ni-msme.
In FY 2008-09, which is about to wind up, the DC (MSME) has launched a massive scheme for IPR awareness creation among the MSMEs. As part of this, the Institute has just completed a series of sensitisation programmes, sponsored by the DC (MSME), for various industry groups located in different parts of the Andhra Pradesh. The industry groups include automotive industry cluster in Guntur, in association with Indira Cooperative Autonagar Society Ltd., Guntur (19th Jan. 09); food processing and imitation jewellery clusters at Machilipatnam, in association with Machilipatnam Imitation Jewellery Park Members Association, Patepalli, Machilipatnam (29th Jan. 09); bulk drugs/pharma clusters of Medak, in association with Pashamailaram Gram Panchayat Notified Industrial Area Service Society, Medak (26th Feb. 09); and, IT/electronics clusters of Hyderabad district, in association with Electronics Industry Association of A.P., Hyderabad.
At all the four places, the programmes have been well received, and not only the respective MSMEs but the local officials had also attended with enthusiasm.
The major objectives of these programmes were: to enhance the level of awareness and strengthen the knowledge on IPR related issues among the entrepreneurs; to develop their understanding regarding the need to integrate IP in their innovation strategies and business planning; to motivate them to protect in every instance their IP achievements through registration of rights and the use of non-registered protection methods; to increase the instances of enforcement and protection of IPR from infringements; and, to enhance their capacity to contest counterfeiting.
Our C-IPR has lined up many more interventions on
IPR such as short-term trainers’ training, and is proposing
to establish a Facilitation Unit. Further, the centre
envisages conducting pilot studies and workshops vis-àvis
different industry sectors.
March 2009
Cluster strategy has proved to be result-oriented in our country with regard to development
and promotion of MSMEs, irrespective of the fact whether they are rural or urban, traditional
crafts or modern manufacturing units, small or big in size. Initially it was implemented in the
traditional manufacturing sector. But, in view of its immense success, it was tried with rural
and artisanal clusters, and traditional crafts as well.
To facilitate cluster strategy implementation for development of khadi and village enterprises, traditional and artisan enterprises as well, the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) programme has been conceived in 2005. Cluster methodology has already been applied to Chanderi, Kota and Pochampally sari clusters with positive effect.
This Institute, being pioneer in development and promotion of rural enterprises for the last half century, has been involved with cluster strategy implementation since 2003. During its long journey, the Institute had also been involved in facilitating the implementation of the concepts of growth centres and backward area development.
In the present instance, ni-msme has taken the first step in the application of cluster strategy to rural enterprises. So far we have acted as technical agent to 64 clusters, and as implementation agent to two (handloom clusters at Barabanki and Mubarakpur), thus gaining experience and insight into the dynamics of implementation and approach to the cluster strategy. At present ni-msme is offering technical services to 10 clusters in the khadi and village sector and 12 in the coir sector. The 12 coir clusters are situated in the states of Andhra Pradesh, Andaman and Nicobar Islands, Orissa, Pondichery and Tamil Nadu. (The Coir Board has selected 26 coir clusters for implementation of the SFURTI programme.)
Coir is an eco-friendly tree produce playing an important role in sustaining the rural economies of our country. Our coir products enjoy a huge domestic market, so huge that many product lines that meet consumer needs have not even been tapped as of now.
In consultation with the Secretary of the Coir Board, the Institute has recently taken the initiative of organising a two-day national level interactive workshop on Development of Coir Clusters under SFURTI, as a campus event.
As technical agency, ni-msme had already conducted awareness programmes on cluster development with special focus on SFURTI, to orientate the NAFOs, IAs and CDEs. In these programmes, inputs were given on conducting diagnostic studies, and preparation of diagnostic study reports and action plans with suitable interventions that would be well supported in the process of validation.
The discussions by the Secretary, Coir Board had illuminated the various issues concerning implementation and problems, technical services, fund release, website designing, monitoring and BDS support.
The timely implementation of action plans would definitely improve the functioning of coir clusters under SFURTI. There is a strong need for involving the various institutions that are utilising the state and central government schemes, and the BDS providers in order to enlarge the domestic and export markets, and find solutions for obsolete technologies.
However, it should be remembered that market success hinges on linkages and outlets. Further, to cash in on the market favour for environmental friendly products we need to encourage the entrepreneurs to inject innovation into product development, in accordance with consumer pulse. Also, we must consider publicising the importance of coir products. The coir artisans should be motivated to exploit credit linkages with nationalised banks, or the Coir Board can, with SIDBI, develop an institutional credit channel.
Our Institute’s services are of significant relevance in organising programmes for the training of trainers, capacity building, and assisting in the implementation of action plans for 2009-10. I am also all afire with eagerness to
publish the success stories of the SFURTI coir clusters, as part of cluster development initiatives.
April 2009
Urban poverty and unemployment are the twin problems that have been troubling our
country since Independence in spite of programmes and schemes through the various five
year plans. The most recent of them is the Swarna Jayanti Shahari Rozgar Yojana (SJSRY),
launched in the Golden Jubilee year of our country’s Independence. The scheme has a wide
ambience and ambitious objectives.
Being operated under the purview of the Ministry of Housing and Urban Poverty Alleviation (HUPA) of the Govt. of India, the steering committee of the project is chaired by the Jt. Secretary (MoHUPA). The main focus of SJSRY is on enabling the urban people find gainful employment either through self-employment or wage employment. Urban self-managed structures like urban neighbourhood groups, urban neighbourhood communities and community development societies are involved in the implementation of the scheme.
The broad objectives of SJSRY include alleviation of urban poverty by encouraging the urban people of below poverty line (BPL) families to set up self-employment ventures, either individually or as a group, by providing the necessary support, or to find suitable wage employment; providing skill development support through training programmes so that the urban poor have better access to employment opportunities – self or wage – made available by the markets; strengthening the urban local bodies earlier mentioned so that they may be more effective in tackling the situation.
The core objective of our Institute is directly related to some of the components of the scheme such as ‘skill training for employment promotion amongst urban poor’ (STEP-UP), in which areas ni-msme is preparing to offer the service of its expertise. The ministry of HUPA has assigned three types of activities to the Institute: 1) Developing the modules of training curriculum in entrepreneurship development for urban unemployed and under-employed youth; 2) Organising a national level workshop on skill development for eradication of unemployment amongst the urban poor; 3) Organising training programmes for the officials of the municipal corporation.
Urban poverty originates basically from – 1) the huge reality of rural to urban migration of people in search of employment and attractive living conditions; 2) the fact that the institutions concerned are not able to meet the demands of the urban youth; 3) the fact that people in general prefer employment with assured and regular income. The Ministry of Heavy Industries and Public Enterprises had floated a scheme for the rehabilitation of rationalised employees, in implementing which ni-msme played a significant role. The Ministry of Rural Development too is offering schemes for skill development among the unemployed youth. Other ministries like the Ministry of Labour also have schemes to help the unemployed/under-employed youth find gainful employment.
The scheme is refocusing the urban polytechnics and ITIs in association with local industry groups in the implementation of the scheme, especially in the identification of skills in which training is needed, to make the scheme more effective. Among the other features of SJSRY, emphasis on women empowerment is noteworthy. Emphasis is also placed on SC/ST and other socially, economically and culturally deprived segments, as also the differently-able persons.
The self-employment aspect gives focus to all the three sectors – production (manufacturing), services and business. In the manufacturing sector, the scheme encourages setting up of micro industries through cluster approach or group approach. Micro enterprises in service and business sectors are also encouraged. The idea is to ensure that no urban household living below poverty line has an adult without the means of livelihood.
With regard to wage employment promotion, opportunities for income earning will be created through local infrastructure and other asset building projects.
Those who opt to be entrepreneurs will be given handholding support. They will also be provided with technology support, assistance in marketing of their products/services, consultancy and other support. Attention will be given to backward and forward linkages to ensure the smooth functioning of the enterprises.
With such wide canvas of attractive features, with astute implementation SJSRY will go a long way in addressing the problem of urban poverty and unemployment/under-employment.
Entrepreneurship development and enterprise promotion being at the centre of ni-msme’s activity plan, with its
expertise and experience in training, handholding and guiding the aspiring first generation entrepreneurs, the Institute
can play a big role and can offer many more services in implementing the SJSRY.