Govt invites US SMEs to form JVs in India

Govt invites US SMEs to form JVs in India

New Delhi: The government on Tuesday invited small and medium units from the US to set up operations in India by entering in joint ventures with the domestic firms.

The government is taking necessary steps to create an enabling environment for small scale units, minister of Micro, Small and Medium Enterprises (MSMEs) Dinsha Patel said at a CII meet in New Delhi.

“I am sure that the SMEs (small and medium enterprises) would assume a top priority during the US President (Barack Obama’s) visit to India, early next month and the linkages would be strengthened," Patel said.

He stressed on the need for increased economic and technical cooperation among SMEs to become competitive.

President Barack Obama’s India visit starts on 6 November.

Addressing the meet, director general and assistant secretary in the US department of commerce Suresh Kumar noted India presents huge opportunities for American businesses.

“...the US businesses have opportunities to provide innovative products and services that improve lives and livelihoods of people," he said adding, US SMEs are looking forward to forge partnerships with Indian firms.

He is leading a delegation of 36 SMEs in the field of renewable energy.

“Here in India, our commercial service team works to bring US SMEs into this market and forge mutually beneficial partnerships...," the official said.

The Indian MSME sector contributes 8% to the GDP, 45% to the country’s manufactured output and about 40% to exports. There are 2.6 crore such units in the country.