Great Britain’s Prime Minister Theresa May’s much hyped 3 day visit to India is likely to be most watched for SMEs from both sides. As expected, India and the UK inked two MoUs on increasing cooperation in fields of intellectual property rights (IPRs) and ease of doing business. The priority initiatives under the MoU include exchange and dissemination of best practices, experiences and knowledge on R&D organisations and SMEs through participation in programmes and events.
May announced that the UK will invest about Rs 1,330 crore across 75 start-up enterprises that will help generate new jobs. She further announced an additional 20 million pound for a Start-Up India Venture Capital Fund.
According to reports, some 120 SME entrepreneurs join her on the trip.
UK’s SMEs
There is speculation that UK’s 5.4 million SMEs are in bad shape after Brexit. Like India, SMEs are growth engine and backbone of UK’s economy too. After industrial revolution, UK’s SMEs got technological upgradation and became spearhead of British economy. This sector is capable of innovation and quality manufacturing.
India’s SMEs
MSMEs is the largest unorganised sector of India. While there are about 36 million SME units in country, only 5.5 millions are registered. The sector is largely dependent on manufacturing but suffering from lack of innovation and technology. Despite having poor infrastructure and many problems, Sector’s contribution in GDP is about 8 per cent, contribution in export is about 40 per cent and contribution in manufacturing is 40 per cent too. This sector provides employment to 10 crore people.
How Co-operation will benefit each other
So after Brexit, Europe’s other countries have severed ties with Britain. Now British SMEs are looking for Asian market to sell their products. That is why Theresa May’s this visit is very important. But what Indian SMEs will get? If India will provide market to Britain then it can demand for better economic cooperation for Make in India. Thus, Indian SMEs can get innovative technology and quality manufacturing from Britain. So, collaboration between Indian and British SMEs will further fuel Modi’s Make in India campaign.
Indian companies emerged as the second largest global job creator in Britain last year. This time again Britain is hoping to revive its economy through Indian market.
Image Courtesy: The Business Standard
