VIJAYAWADA: Expressing concern over shrinking bank credit to small-scale industry, Industrial Development Bank of India Director K. Narasimha Murthy on Saturday said that neglect of small and medium enterprises (SMEs) would not augur well for the country's economy as a whole.
Addressing a meeting organised by the Vijayawada Industrial Estate Manufacturers' Association, he said that defective technology, industrial sickness, low-skilled manpower and stringent quality standards in the wake of globalisation were plaguing the SME sector. "These factors are becoming more problematic at a time when globalisation is bringing a lot of changes," he added. Mr. Murthy said that lack of sound financial management and good costing practices had spelt doom for many small-scale industries in the country and the managements should take extra care in this respect. "They do not hire skilled people. This is because they cannot pay well," he added.