Malda (West Bengal): The Union Minister of State for Small-Scale Industry, Tapan Sikdar, today (Nov 2) said that the interest rate of bank loans for small-scale industries (SSI) would be reduced to 11 per cent from the present 13 per cent within a year.

The Centre even wants to reduce the interest rate to nine per cent in course of time, the Minister said.

As opportunities in traditional agriculture, the stronghold of Indian economy, were shrinking, the small- scale industrial units would once again receive stress because of their huge potential, the Minister said.

The only roadblocks to the progress of small-scale industry are globalisation and liberalisation, Sikdar said while speaking at the 'Rural Entrepreneurship Development Programme' at the Malda Chamber of Commerce here.

Sounding a note of caution, the Minister, however, said that to survive in the ruthless world of competition the small industry would have to adjust itself to the demands of time.

At least 37 per cent of the country's 35 lakh small-scale units are sick only because they did not reorient themselves to the changing scenario of demand for products.

All the same, the small industry's share in the total industrial production is 39 per cent, and on the export front its contribution is 39.8 per cent, the minister said adding 25 crore people are directly or indirectly dependent on the industry.

PTI