The small scale industries sector in India is bound to suffer due to globalisation despite the government's efforts to support it, according to Planning Commission Deputy Chairman K C Pant.

International experience showed that a number of small and medium enterprises were adversely affected by globalisation, while others became globally competitive, Pant said. India would also pass through the same phase, he added.

Delivering the keynote address at the conference on Eastern Regional Organisation for Public Administration, Pant said the development paradigm now had to be altered to accommodate the importance of competitiveness.

The focus is to build on core competencies in different sectors of the economy. Even governments were moving from direct involvement to creating enabling conditions for facilitating production of goods and services, he added.

The new scenario demands much more predictability and transparency in administration, improving the 'velocity of business' or the speed at which transactions take place in the country, and developing a participatory approach in governance.

Emphasising the need for the administrative apparatus of the country to adopt technological developments to increase efficiency, he said information technology proved handy in facilitating a wide range of administrative tasks.

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Pant said e-governance should be used to promote private-public sector partnerships in developmental works and to test delivery mechanisms.

He said it was already being applied in various administrative work and proved to be cost-effective.

The availability of public information through the electronic mode would provide SMEs ready access to administrative procedures for exports, imports, tax filings and business opportunities, he said.

Pant suggested developing an in-built system in these services to prevent frauds.

Faced with the challenges posed by changing trends, he said the planning process had, for the first time, taken special note of governance and a separate chapter on governance and implementation had been included in the first volume of the Plan document.