Speaking at various occasions in New Delhi, they have promised much needed support to this vital segment of the economy.
The Government announced that it will soon set up a Rs 100 crore venture capital fund to provide equity support to start-ups in the textile sector. Proposed by the National Manufacturing Competitiveness Council and supported by textile ministry, the Fund would be jointly set up with the SIDBI Venture Capital and is expected to be in place by November this year.
According to an Economic Times report, the centre will put in Rs 35 crore while SIDBI will pool in Rs 15 crore to lend out to entrepreneurs. This fund would inflate to Rs 100 crore during the remaining period of the 12th Plan, based on the performance witnessed in the pilot phase.
The textile sector, the report said, contributes about 14 percent to industrial production, 4 percent to the GDP and 17 percent to the country's export earnings. The sector is the second largest employment provider after agriculture.
In this context, innovation is key to both survival and growth. Speaking at a recent CII event, MSME Secretary Madhav Lal said that his ministry has observed that the small initiatives by SIDBI and other similar organisations are ineffective to a certain extent in lieu of them being dispersed.
Giving optimism to the MSME sector, which incidentally is the largest employment provider and output generator, the minister of state for MSME, K H Muniyappa said at CII that his government is ready to support the sector and wants the industry to suggest measures to facilitate marketability of SME products globally.
Both Mr Madhave Lal and MR Muniyappa banked on the importance of R&D and innovation being the driving force behind achieving the above goals. Muniyappa informed the gathering that that plans were already in place to add 15 more MSME clusters.
Speaking at the same function was H P Kumar, chairman and managing director, National Small Industries Corporation. He highlighted the lack in industrial infrastructure, availability and cost of capital, and compliance with labour norms as the main problems hindering SME growth. The relentless Chinese import onslaught was also mentioned.
The total number of registered MSMEs rose by 19 per cent in 2011-12, according to the ministry of MSME's annual report for 2012-13. The gross output of these enterprises increased by around seven percent in 2011-12.