New Delhi: The MSME sector in India is diverse in terms of its size, levels of technology employed and range of products and services produced. Starting from grass root village Industries, the products from the sector spans to auto components, micro-processors, electronic components and electro-medical devices.
MSMEs have shown constant growth rate of over 10% in recent years much ahead of the large-scale corporate sector. This sector contributes 8% of the country’s GDP, 45% of the manufactured output and 40% of its exports. India is one amongst very few countries which has a legal framework for the MSME Sector in the form of MSMED Act 2006 which has established provisions under which issues like public procurement and delayed payments are addressed.
`Make in India` campaign to get Indian companies as well as global firms to invest and partner in the manufacturing sector is a well-drawn out concept and is the most relevant for India’s MSMEs. ‘Make in India’ campaign can attract the foreign MNCs to bring in their investment, set up venture/angel funds to take advantage of the inherent depth of the MSME Sector in terms of range of products and services, marketing networks and the ability to grow fast.
Another advantage in Indian MSME Sector the foreign partners would experience is that production process in this sector is already underway. The various networks required for undertaking the production process are already established. The foreign MNC is just required to bring in investment and technical know-how to achieve excellence in these areas.
The major achievements under various programmes and schemes during 2014-15 are as follows:
The Government of India notified Public Procurement Policy for MSEs, for goods produced and services rendered by Micro & Small Enterprises (MSEs).
The policy mandates that all the Central Ministries, Departments, CPSUs shall procure minimum of 20% of their annual value of goods or services required by them from Micro and Small Enterprises. The policy would become mandatory with effect from April 2015.
National Manufacturing Competitiveness Programme
The National Manufacturing Competitiveness Programme (NMCP) for the MSMEs, aims at enhancing the competitiveness of enterprise in this sector. There are various components of the NMCP, which have been approved and are available for MSMEs.
Skill Development has been taken up as a high priority area by the Ministry through various measures like enhancing the training capabilities of the Tool Rooms, MSME Development Institutes and other organizations under Ministry of MSME.
Credit Guarantee Scheme
The Government is implementing the Credit Guarantee Fund Scheme for Micro and Small Enterprises with the objective of facilitating flow of credit to the MSEs, particularly to micro enterprises by providing guarantee cover for loans upto Rs.100 lakh without collateral / third party guarantees.
Thrust on Khadi & Village Industry
Khadi & Village Industries Commission (KVIC) has also risen to the occasion by renovating the Khadi Gramudyog Bhawan, New Delhi and ensuring that a wide variety of Khadi and Village Industry products are showcased to cover all age groups, all sections of textile market, such as Designer wear, home furnishing, upholstery, woolens including Pashmina, bridal wear, wide range of sarees from across the country, office wear, casual wear, children wear, ready to use and readymade dresses.