Micro, Small and Medium Enterprises[/b]
The Micro, Small and Medium Enterprises (MSME) sector has been an integral component of the industrial sector. The MSC sector has been accorded special status and importance in the Five-Year Plans since inception in view of the advantages it offers for better utilization of resources of capital and skill at the local level. The continuous support provide to the sector in the form of incentives, infrastructural facilities and other assistance in the industrial policy resolution has facilitated the sector to acquire a place of prominence in the socio-economic development of the country. The number of enterprises in the MSE sector in the estimated to be over 13 million, providing employment to estimated 42 million persons. As per the latest estimates, the micro and small enterprises (MSE) sector accounts for about 39% of the manufacturing output and 33% of the national exports of the country (the estimated contribution is 45% and 40% respectively for the micro, small and medium enterprises (MSMEs) as defined under MSMED Act, 2006). Further, in recent years the MSME sector has consistently registered higher growth rate compared to the overall industrial sector.
For achieving the objective of inclusive growth, creation of large employment opportunities is of significant importance. However, the declining employment trend in the organized sector has resulted in agriculture sector continuing to provide employment to almost two-third of the Indian population. With the land holding declining substantially, there is considerable surplus population engaged in the agriculture sector and needs to be provided gainful employment in the industrial and service sectors of the economy. The major advantage of the MSME sector lies in its significant employment potential at low capital cost and the labour intensity in the MSME sector is estimated to be considerably higher than in the large enterprises. However, in today’s liberalized and globalised environment, there are several preconditions to enhance the global competitiveness of the MSMEs. These relate mainly to simplified system and procedures, easy access to capital, positioning the MSMEs in the global value chain by enhancing their productivity (involving issues like technology upgradation, quality improvement, skill development, etc.) and access to markets (both domestic and global). For the promotion and development of the MSMEs, the Government has put in place policy measures as well as implemented several schemes/programmes to address the requirements of the MSME sector in these areas.
The Micro, Small and Medium Enterprises (MSME) sector has been an integral component of the industrial sector. The MSC sector has been accorded special status and importance in the Five-Year Plans since inception in view of the advantages it offers for better utilization of resources of capital and skill at the local level. The continuous support provide to the sector in the form of incentives, infrastructural facilities and other assistance in the industrial policy resolution has facilitated the sector to acquire a place of prominence in the socio-economic development of the country. The number of enterprises in the MSE sector in the estimated to be over 13 million, providing employment to estimated 42 million persons. As per the latest estimates, the micro and small enterprises (MSE) sector accounts for about 39% of the manufacturing output and 33% of the national exports of the country (the estimated contribution is 45% and 40% respectively for the micro, small and medium enterprises (MSMEs) as defined under MSMED Act, 2006). Further, in recent years the MSME sector has consistently registered higher growth rate compared to the overall industrial sector.
For achieving the objective of inclusive growth, creation of large employment opportunities is of significant importance. However, the declining employment trend in the organized sector has resulted in agriculture sector continuing to provide employment to almost two-third of the Indian population. With the land holding declining substantially, there is considerable surplus population engaged in the agriculture sector and needs to be provided gainful employment in the industrial and service sectors of the economy. The major advantage of the MSME sector lies in its significant employment potential at low capital cost and the labour intensity in the MSME sector is estimated to be considerably higher than in the large enterprises. However, in today’s liberalized and globalised environment, there are several preconditions to enhance the global competitiveness of the MSMEs. These relate mainly to simplified system and procedures, easy access to capital, positioning the MSMEs in the global value chain by enhancing their productivity (involving issues like technology upgradation, quality improvement, skill development, etc.) and access to markets (both domestic and global). For the promotion and development of the MSMEs, the Government has put in place policy measures as well as implemented several schemes/programmes to address the requirements of the MSME sector in these areas.