MOU for Cooperation in MSME Sector Signed

Introduction

The Ministry of Micro, Small and Medium Enterprises of India and Ministry of Commerce, Industry, Investment, Promotion, Tourism and Cooperatives, Republic of Rwanda had signed a Memorandum of Understanding for cooperation in the MSME sector here today. The first Joint Committee Meeting (JCM) between the two sides was held under the Co-chairmanship of Shri Uday Kumar Varma, Secretary, M/o MSME and Mr. Emmanuel Hategeka, Permanent Secretary, Ministry of Trade and Industry.

The Secretaries of both the countries discussed the issue for promotion of bilateral relationship for the mutual benefit of MSME sector in the two countries. The Rwandan Government showed keen interest in sharing the best experiences of M/o MSME in India and requested for technical and economic support from M/o MSME and its organizations like NSIC, a public sector enterprises under the administrative control of M/o MSME and National Institute for Entrepreneurship and Small Business Development (NIESBUD), a premier Entrepreneurship Development Institute of M/o MSME for setting up incubator, entrepreneurship development institute, capacity building of trainers for providing training to the MSMEs of Rwanda, setting up of food park in Rwanda etc. The Secretary of Rwandan Government expressed their interest for institution to institution and enterprise to enterprise cooperation leading to access to technology & capabilities from Indian Government and also requested to know the taxation system of MSME sector in India.

The Government of Rwanda, M/o MSME agreed to facilitate the Rwandan delegation visit to NSIC and NIESBUD for their exposure to the programmes being conducted by these organizations for the promotion of small business. Further, they requested assistance from M/o MSME for setting up Common Facility Centre for community. The delegation would also be facilitated the visit to some of the relevant MSMEs in India. This exposure would provide the Rwandan Government an insight of the programmes of the M/o MSME, so that the same can be replicated in their country.

Regarding taxation, the Secretary (MSME) explained that till 1990s, Government of India gave protection and concession to MSMEs but since then policy has shifted from protection to competitiveness in view of liberalization, privatization and globalization. Presently the taxation system is uniform for all the enterprises with some exception for MSME sector.

Both the countries agreed to setting up an EDI in Rwanda with the expertise from M/o MSME. Rwandan Government would be submitting its proposal for capacity building and setting up of EDIs and Common Facility Centre to Ministry of External Affairs (MEA) particularly for financial allocation from MEA to M/o MSME within a month.

The country was also invited to participate in the forthcoming ‘Techmart’ organised by NSIC during Indian International Trade Fair (IITF) in November, 2011 in New Delhi to get the feel of Indian products and markets.

Those who were present during the meeting included Shri Amarendra Sinha, Joint Secretary (SME), Shri R.K. Manchanda, Joint Secretary (ARI), Dr. H.P. Kumar, Chairman-cum-Managing Director, National Small Industries Corporation Ltd. (NSIC) .

Source

Press Information Bureau, August 25, 2011