MSME sector growing steadily over last decade: Muniyappa

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SME Times News Bureau | 11 Dec, 2012
The Micro, Small and Medium Enterprise (MSME) sector has shown a steady growth over the last decade, said the Minister of State (Independent Charge) for Micro, Small and Medium Enterprises, K. H. Muniyappa in a written reply to a question in the Rajya Sabha on Monday.

According to the results of the Fourth census for MSMEs, the number of MSMEs have increased from 105.21 lakhs to 361.76 lakhs during the period 2001-02 till 2006-07,

As per Third All India Census of Small Scale Industries (SSIs) with reference year 2001-02 and Fourth All India Census of MSMEs 2006-2007 and data extracted from Economic Census 2005 conducted by Central Statistics Office, Ministry of Statistics & Programme Implementation for activities excluded from Fourth All India Census of MSMEs employment in MSMEs increased from 249.33 lakhs to 805.24 lakhs during this period.

Per unit employment for registered units increased from 4.48 to 5.95 during the period. .

About 95 percent of registered MSMEs are micro enterprises while about 99.5 percent of unregistered MSMEs are micro enterprises, Muniyappa said.

The Government monitors growth of MSMEs in the country by conducting All India Census of the sector, periodically. The latest Census (Fourth Census) was conducted with reference year 2006-07, wherein the data was collected till 2009 and results published in 2011-12.

In an other reply to to a question in the Rajya Sabha, the minister said that as per the data furnished by the Reserve Bank of India (RBI), there were 100.08 lakh accounts of Micro, Small and Medium Enterprises (MSMEs) who availed loans from Scheduled Commercial Banks at the end of March, 2012.

The data on sick MSMEs in respect of these banks, indicate that there were 89,642 sick enterprises at the end of March, 2012.

The factors responsible for unsuccessful entrepreneurs include Marketing Problem, Finance Problem, Could not survive competition etc., he added.

The potentially viable sick units are encouraged to revive their activities by way of providing rehabilitation package as announced by RBI.

Financial assistance, by way of debt restructuring, including fresh loans for rehabilitation of MSEs is provided by primary lending institutions, including commercial banks, which provide credit to the MSEs.

As per RBI data, out of 89,642 sick enterprises at the end of March, 2012, 6751 were put under nursing for rehabilitation, Muniyappa added.