The Hindu

Mangalore, June 2: The Indian economy can maintain a growth rate of 8 to 9 cent despite the price rise, Union Minister of State for Labour and Employment Oscar Fernandes has said. The Union Government is taking steps to contain price rise in areas under its influence. However, the Government cannot do much in other areas such as reigning in oil prices, he said.

Inaugurating the Southern India “mSME Meet 2008,” organised by the Chamber of Small Industry Association (COSIA) here on Sunday, Mr. Fernandes said the Union Government had intervened effectively to keep a check on rising steel and cement prices. Observing that even food prices were coming down, Mr. Fernandes expressed optimism about being able to achieve 9 per cent growth rate.

Observing that there was global economic recession, which was keeping foreign and institutional investors away, he said in such circumstances achieving a growth rate of 8 per cent would be a big achievement.

Describing the mSME sector as the backbone of the Indian economy, Mr. Fernandes said the United Progressive Alliance Government was committed to its welfare. “We are not keen on introducing inspector raj for this sector,” he said and added, “The self-certification given by proprietors of mSME units is enough.”

Chief General Manager of Corporation Bank M. Narendra, who was chief guest, said the Union Government had drawn up plans to double credit to the mSME sector in the next five years.

“The Bank has reached out to a vast section of the mSME sector through connectivity programmes,” he said. The bank has extended the categories of national awards for the sector instituted by it to 11 to encourage entrepreneurs, he added.

President of COSIA M.R. Khambete said the days ahead for the mSME sector were promising yet challenging. “Our competition is not with mSME units in India, but with those outside the country,” he said. The association would organise similar meets in Eastern and Northern India and follow it up with a national level meet to discuss on challenges before the sector, he added.

Earlier, Mr. Fernandes released TISA, magazine of the association, and also honoured the presidents of sister associations from the southern region. General secretary of COSIA P.S. Agwan welcomed the gathering. Joint secretary, COSIA, Madhu Gupta proposed the vote of thanks.

Adviser, Ministry of Labour, Ashok Sahu, and Regional Director of the Reserve Bank of India Devaki Muthukrishnan were present.