FISME to help unregistered MSMEs | SupportBiz

Top Story

FISME to help unregistered MSMEs

The Planning Commission's new manufacturing plan will help unregistered micro and small industrial enterprises (MSMEs) access institutional finance, power connections and other entitlements, the Federation of Indian Micro and Small and Medium Enterprises (FISME) said. Of the roughly 13 million industrial MSMEs in India, only six percent are registered.

Institutional entitlements such as fiscal incentives, power connection, purchase preference, technology assistance and other incentives are available only to the registered units.

The manufacturing plan component of the 12th Plan (2012-17) has recommended the setting up of an institutionalised mechanism that would enable central and state governments to better address issues affecting 94 percent of industries in the MSME sector, FISME said in a statement.

The FISME expressed happiness over the Planning Commission accepting its recommendation that a new approach should be adopted to help Indian manufacturing break out of the stagnation that has kept its share in the gross domestic product at a lowly 16 percent for the last two decades.

"A new backbone organisation (BBO) to ensure implementation of the manufacturing plan may lead to policy and institutional reforms that would allow unregistered industrial units in the micro and small sector to join the mainstream and enjoy all entitlements," said Planning Commission Member Arun Maira at a stakeholders' consultation organised by FISME.

"The BBO being developed would enable policy makers to unleash exactly the kind of reforms that micro units need to breathe freely and grow rapidly," Maira added.