New Delhi: The share of MSME sector in the country's manufacturing output and GDP has sharply declined over the years, according to a government report.
The contribution of micro, small & medium enterprises (MSMEs) to the total manufacturing output and gross domestic product (GDP) in 2007-08 stood at 41.98% and 7.81% respectively.
However, by 2011-12, it registered a consistent downslide and came down to 37.52% and 7.28% percent respectively.
The percentage share of MSMEs in the total manufacturing output stood at 41.98% in 2007-08. It came down to 40.79 percent in 2008-09, 39.63% in 2009-10, 38.48% in 2010-11 and 37.52% in 2011-12.
Besides, the contribution of MSMEs to the country's GDP was 7.81% in 2007-08, 7.52% in 2008-09, 7.49% in 2009-10, 7.42% in 2010-11 and 7.28% in 2011-12 respectively.
The Narendra Modi-led government announced a slew of measures to revitalise the MSME sector, laying special thrust on promotion of start-ups in the Union Budget recently.
Some of the proposals include setting up a Rs 10,000 crore venture capital fund to attract capital for the sector; reviewing the definition of MSME to provide for a higher capital ceiling; establishing a technology centre network to promote innovation, entrepreneurship and agro-industry by setting up a fund with a corpus of Rs 200 crore.
To encourage small entrepreneurs, the government announced that an entrepreneur-friendly legal bankruptcy framework will be developed for SMEs to enable easy exit. It also said that a nationwide 'District level Incubation and Accelerator Programme' would be taken up for incubation of new ideas and providing necessary support for accelerating entrepreneurship.