Lalitpur. Stakeholders have pointed out that small and cottage industries need subsidies, policy stability and government protection at a time of economic slowdown, contraction of investment and slowdown in the market.

Inaugurating the 26th National General Convention and 23rd National Women Entrepreneurs Conference of the Federation of Nepal Cottage and Small Industries (FNCSI) here today, they stressed on the need of effective collaboration between the government and private sector for the revival of the industry.

According to them, the small and cottage industries sector has been affected due to lack of coordination among the three tiers of government, outdated laws and policy instability.

Secretary at the Ministry of Culture, Tourism and Civil Aviation, Mukunda Prasad Niraula, said that small and cottage industries were the basis for building a self-reliant economy. Stressing the need of expanding the market by linking local products with tourism, he stressed the need of effective branding and marketing of local products like Radipakhi and Allo of Karnali.

Secretary Niraula pointed out the need of effective coordination among the federal, provincial and local governments, saying frequent transfer of employees in government bodies has affected policy continuity. He suggested making amendment to laws as per the constitution, formulating industry-friendly policy, prioritizing local production in public procurement and implementing the public-private partnership (PPA) model in an effective manner.

FNCCI President Umesh Prasad Singh pointed out the need of making collaboration between the government and private sector more effective, saying the industries and business sectors have been affected by the current economic crisis. He said the FNCCI has been continuously taking initiatives with the government for the protection of rights and interests of small and cottage industries, revival of sick industries and formulation of industry-friendly policies.

According to Singh, the micro and small industries currently operating across the country are providing direct employment to 32 to 40 lakh people.

According to him, the Federation has been working in the areas of protection of rights and interests of micro, domestic and small entrepreneurs, development of entrepreneurship and leadership capacity enhancement of women entrepreneurs since its establishment in 2047 BS.

Currently, the federation has expanded to all seven provinces, 77 districts and more than 300 local levels. Similarly, Women Entrepreneurs Committees are active in seven provinces, 62 districts and various municipalities under the Central Women Entrepreneurs Committee.

The two-day convention, attended by representatives from district and state across the country, will elect new leadership and determine future action plan and policy direction.

The general convention would prepare important plans and programmes on the issues of women entrepreneurship development, economic empowerment, innovation and expansion of market access.