Competitiveness is determined by the productivity with which a nation uses its human, capital and natural resources. It is evident at both macro level (relatively low share manufacturing in GDP low impact on employment growth and poverty reduction) as well as micro level (low productivity, lack of international competitiveness). Studies on global competitiveness for selected sector of the industry have shown that among others, the factors inhibiting growth are: inefficient use of resources resulting in poor product quality accompanied by hidden high cost due to rejection and re-work in the course of manufacturing building up inventory at the various stages in the form of raw materials, work-in-progress, finished components, finished product etc. This calls for increasing competitiveness by boosting firms’ performance by systematically identifying and eliminating waste throughout the entire business cycle by applying appropriate managerial and technological practices.
In general MSMEs lack in accessing technology; due to poor consultancy support/services for technological information, non availability of skilled man power, lack of awareness among entrepreneurs about emphasis on production and production cost, lack of managerial skills and poor adoptability to changing trade, trends, etc.
For technology up-gradation DC(MSME) provides capital subsidy and other assistance to strengthen the MSEs. The Schemes covered under Technology up-gradation & Productivity Enhancement also helps MSEs to face the challenges of liberalization & globalization. The details of the schemes covered under Technology up-gradation & Productivity Enhancement are as under :-
Capital subsidy for adopting the new Technology:- CLCSS
Strengthening MSEs through competitiveness :- NMCP-Schemes