According to the estimates of the Ministry of MSME, the sector generates around 100 million jobs through over 46 million units situated throughout the geographical expanse of the country. With 7.5% share of manufacturing MSMEs to the nation’s GDP and 46% and 30% share of the overall exports and services sector, respectively, it is easy to comprehend the salience of the role they play in social and economic restructuring of India.
As India gears up to retrace the high growth path, the Micro, Small and Medium Enterprises (MSMEs) sector assumes a pivotal role in driving the growth engine. The role of the MSME sector was discussed in a Seminar on ‘Make in India through MSME Partnership’ at the ongoing Make in India Week in Mumbai. The Make in India Week mega event is being organised by the Confederation of Indian Industry (CII) in partnership with the Department of Industrial Policy and Promotion (DIPP) and the Government of Maharashtra.
Mr. Kalraj Mishra, Hon’ble Minister, MSME, Government of India. Speaking on the tremendous contribution made by the MSME sector in the growth of the Indian economy, Mr Mishra said, “The sector has sustained an annual growth rate of over 10% for the past few years. The significance of MSMEs is attributable to their caliber for employment generation, low capital and technology requirement, promotion of industrial development in rural areas, use of traditional or inherited skill, use of local resources, mobilization of resources and exportability of products.”
On the performance of MSME sector, the minister said, “The Indian MSME sector provides maximum opportunities for employment and contributes in building an inclusive and sustainable society in innumerable ways through creation of non-farm livelihood at low cost, balanced regional development, gender and social balance and environmentally sustainable development.”
Reiterating the supportive role of the current Government, Mishra stated that through its various agencies the government has taken key steps to strengthen the MSME sector and promote innovation and capacity building in this sector.
Mishra said, “The biggest hindrance in the MSME sector – registration – has been highly simplified in the past few months. Today, anybody with an innovative idea can submit only a one-pager document and register online in three minutes without documentation or money spent. Since the launch of the online registration portal, 2 lakh 25 thousand registrations have been done till date, with 45,000 in Maharashtra alone.”
“With new steps in place, regular dialogue is facilitated between various stakeholders through the constitution of specific task forces and inter-ministerial committees. The Micro and Small Enterprises-Cluster Development Programme is being implemented by the government for integrated development of these enterprises in clusters through interventions and infrastructure upgradation for enhancing their productivity and competitiveness. During the year 2014-15, 43 new clusters have been taken up for various interventions,” he stated.
Through the Aspire scheme for promotion of innovation in rural industry, two technical incubation centres and two business centres have already been launched. Focus on startups through the Aspire scheme is also a focus area. The National Manufacturing Competitiveness Programme is another flagship programme of the Ministry of MSME which endeavors to equip these enterprises with technology-based tools in the areas of quality upgradation, productivity, design development, energy efficiency and marketing.
The minister observed that with its resource pool of engineering talent and high skill labour at affordable costs, India has the potential to become a significant player in the global auto industry, especially in engineering and component manufacturing.