'MSME Sector Contributes Almost 38% To GDP In 2012-13 | SupportBiz


'MSME Sector Contributes Almost 38% To GDP In 2012-13

During 2012-13 the share of MSME sector, including services sector, in GDP of the country is 37.54 percent, Union Minister of Micro, Small and Medium Enterprises, Kalraj Mishra informed this in a written reply to a question in Rajya Sabha on Tuesday. Keeping this, the government is preparing a comprehensive strategy to revitalize the sector.

"As per the revised methodology suggested by Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation (MoSPI), on the basis of the data on Gross Domestic Product (GDP) published by CSO, MoSPI and final results of the latest Census (Fourth Census), conducted (with base reference year 2006-07), wherein the data was collected till 2009 and results published in 2011-12, the estimated contribution of manufacturing sector Micro, Small and Medium Enterprises (MSME) to GDP, during 2012-13, is 7.04 percent," said minister in a press selease.

"However, taking into account the contribution of services sector MSME, which is estimated at 30.50 percent during 2012-13, the share of MSME sector in GDP of the country, during 2012-13, is 37.54 percent," he added.

MSME Ministry is expected to ready an in-depth plan to revitalise the sector within six months time. "The Ministry is in the process of preparing a comprehensive development strategy for the sector in consultation with all stake-holders. This is expected to be ready within a period of 6 months," said minister.

Based on the export data maintained by Director General of Commercial Intelligence & Statistics, Ministry of Commerce and the information available with this Ministry about MSME products having significant export, the share of MSME in India's total export, for the year 2013-14, has been estimated as 42.38 percent.

The Government monitors the employment in the MSME sector in the country by conducting All India Census of the sector, periodically. As per the latest Census (Fourth Census), as well as data extracted from Economic Census 2005 conducted by CSO, MoSPI, for activities excluded from Fourth Census, namely wholesale/retail trade, legal, educational & social services, hotel & restaurants, transports and storage & warehousing (except cold storage), the total employment in the MSME sector is 805.24 lakh, release added.

In addition, for improving the productivity of of cottage and small industries, the government has also been implementing various schemes providing them with improved equipments, common facilities centres, business development services, training, capacity building and design and marketing support, etc.

The development of cottage and small industries is primarily the responsibility of State Governments. However, the Ministry of MSME supplements the efforts of State Governments by implementing a number of schemes for the development of khadi, village industries and coir through Khadi and Village Industries commission (KVIC) and Coir Board.

These include a major credit-linked subsidy programme named Prime Minister's Employment Generation Programme (PMEGP) being implemented through Banks since 2008-09 with KVIC as nodal agency at the national level for generating employment in the Country by setting up of micro-enterprises in the non-farm sector.