MICRO, SMALL AND MEDIUM ENTERPRISES ( MSME ) INDIAN SCENARIO
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1 MICRO, SMALL AND MEDIUM ENTERPRISES ( MSME ) INDIAN SCENARIO Jawhar Sircar Additional Secretary & Development Commissioner Ministry of Micro, Small & Medium Enterprises Government of India 1
2 India: a large country with federal structure Population in excess of one billion Planned economy MSME- INDIAN SCENARIO Liberalised economy since 1991 Lowering of tariff barriers & onset of globalisation Govt. interventions and assistance programmes began in 1950s MSME now a vibrant sector 2
3 MSME- INDIAN SCENARIO 12.5 million MSMEs Employ 30 million People Contribute approx. 50% of Industrial Production Contribute approx. 45% of Exports 3
4 MSME- INDIAN SCENARIO Scale of operation ( ) 05) Exports : Production: Reserved items: MSE MSME $ 33 Billion $ 56 Billion $ 130 Billion $ 160 Billion $ 114 Billion (for exclusive manufacture by MSMEs) Growth Rate Industrial Growth Rate: 11.5% SSI Growth Rate : 13.0% 4
5 MSME- INDIAN SCENARIO TRENDS IN GROWTH YEAR GDP% INDUSTRIAL SECTOR % SSI SECTOR % * 03*
6 35 MSME- INDIAN SCENARIO PRODUCTS OF SSIs More than 8000 products % Food Products B asic M etal Industry Electrical & M achinery P arts Others Chemical & Chemical Products M eta l P ro ducts Rubber & P lastic P roducts 6
7 MSME- INDIAN SCENARIO MAJOR EXPORT PRODUCTS READYMADE GARMENTS CHEMICALS AND PHARMACEUTICALS ENGINEERING GOODS PROCESSED FOODS LEATHER PRODUCTS MARINE PRODUCTS 7
8 MSME- INDIAN SCENARIO Current 5 Year Plan ( ) 2012) : MSMEs to 13% per annum & to generate additional 1.3 million jobs per annum 8
9 MSME- INDIAN SCENARIO MSE development as a tool of state policy aims at : Generation of Employment Dispersal of Economy Utilization of local skills and resources Meet demands locally, as feasible 9
10 MSME- INDIAN SCENARIO NEW ACT: Classification Concept Concept of Enterprises as against Industries Enterprises classified broadly into those: (i) engaged in the manufacture & (ii) engaged in services 10
11 MSME- INDIAN SCENARIO Machinery Cost in MANUFACTURING ENTERPRISES : - Micro - Up to $ 55,000 - Small - $ 60,000 to $ 1.2 million - Medium - $ 1.2 million to $ 2.5 million 11
12 MSME- INDIAN SCENARIO Equipment cost in SERVICE ENTERPRISES : - Micro Up to $ 25,000 - Small $ $ 25,000 to $ 500,000 - Medium $ $ 500,000 to $ 1.25 million 12
13 MSME- INDIAN SCENARIO Policy support for MSEs Legislation Credit support Fiscal support Small Industry Cluster Based Programme Technology & Quality Upgradation Marketing Support Programmes Empowerment of Women-owned owned Enterprises Statistical Data for decision making Training & Exposure 13
14 MSME- INDIAN SCENARIO Mechanism for promotion & development Federal Government responsible for policy, credit flow, centrally sponsored schemes State Governments responsible for implementation, infrastructure development and monitoring Capacity building, training, consultancy support, technology demonstration & transfer, data compilation & maintenance and marketing supported by Federal Government as well as State Governments 14
15 Infrastructure MSME- INDIAN SCENARIO Industrial infrastructure planned & developed by State Governments Industrial land, plots, sheds and workplaces Roads Power distribution Institutional buildings Infrastructure supported by Federal Government Communication Power generation Funding to States and private organisations for infrastructure development Transportation 15
16 MSME- INDIAN SCENARIO Promotional needs Awareness building Potential assessment & product identification Consultancy Technology Exposure, Documentation & adoption Demonstration and common facilities Training Entrepreneurship development Management development Skill upgradation 16
17 MSME- INDIAN SCENARIO Promotional needs (contd..) Market development Training Market surveys Export avenues Specialized institutions Product / process based Services based Raw material based 17
18 MSME- INDIAN SCENARIO Support programmes and schemes Assistance for Entrepreneurship Development Credit Guarantee Fund Scheme for Small Industries Micro Finance programme Credit Linked Subsidy Scheme for Tech upgradation Tool Rooms for Dies, Moulds, Jigs, Fixtures Testing Stations for Calibration 18
19 MSME- INDIAN SCENARIO Support programmes and schemes Cluster Development Programme Quality Upgradation Upgradation in small scale sector, through incentive for ISO 9000 & Certification Trade Related Entrepreneurship Assistance for women Setting up of Testing Centers by Industries Associations 19
20 MSME- INDIAN SCENARIO The availability of policy and developmental support has enabled rapid and sizeable development of Micro & Small Enterprises in India Changes in policy & support have been effected as per emerging needs of globalization, to enable SSI in maintaining competitive edge WTO Compatibility Availability of Finance Technology Upgradation Skill Development 20
21 JAWHAR SIRCAR 21
22 THANK YOU 22
23 2 23
24 COOPERATION AVENUES FOR DEVELOPMENT OF SMALL SCALE INDUSTRIES IN PERU July Peru Presentation by Jawhar Sircar Addl. Secretary & Development Commissioner (SSI) Ministry of Small Scale Industries, Govt. of India 24
25 DEVELOPMENT OF SSI Indian experience of SSI development is a successful and sustainable model Economic & Industrial development in India Addressing the unemployment problem. India will be happy to cooperate and share its experiences of SSI development with PERU 25
26 DEVELOPMENT OF SSI Cooperation Avenues Policy planning Credit Mechanism Assessment & evaluation studies Industrial potential Market potential Trade practices Technology needs & transfer Implementation of sectoral programmes Infrastructure development Institutional mechanism Training 26
27 DEVELOPMENT OF SSI Cooperation Avenues with Peru Policy planning Assessment of Policy needs Policy formulation Optimization of resources Enunciation of economic & industrial growth targets Development support policy as per national needs 27
28 DEVELOPMENT OF SSI Cooperation Avenues with Peru Credit Mechanism Credit Policy & Structure Assessment of Credit needs Formulation of Credit Guarantee Scheme 28
29 DEVELOPMENT OF SSI Cooperation Avenues with Peru Assessment & evaluation studies Industrial potential Resource potential Market potential Trade practices Promotional initiatives 29
30 DEVELOPMENT OF SSI Cooperation Avenues with Peru Infrastructure development Assessment of industrial infrastructure needs Development of industrial infrastructure Institutional mechanism Identification & Assessment of Institutional support needs Project Plan for desired institutions Establishment of specialized institutes/centers 30
31 DEVELOPMENT OF SSI Cooperation Avenues with Peru Training Identification & Assessment of Training needs Training of trainers Establishment of training centers Specific training programmes in India for Peru entrepreneurs Expertise to conduct training programmes in Peru 31
32 DEVELOPMENT OF SSI India will be happy to cooperate for development of SSI in Peru as per needs A working group could be constituted to formulate an understanding for sustainable development 32
33 THANK YOU 33
34 THANK YOU 34
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