MSEs contributes 8.72 pc in GDP: Virbhadra Singh

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SME Times News Bureau | 01 May, 2012
Based on the data of Gross Domestic Product (GDP) published by Central Statistics Office, Ministry of Statistics and Programme Implementation, the estimated contribution of Micro and Small Enterprises (MSEs) to GDP during 2008-09 (latest available) is 8.72 percent.

The Union Cabinet Minister for Micro, Small and Medium Enterprises (MSME), Virbhadra Singh informed this in a written reply to a question in the Rajya Sabha on Monday.

The Government monitors growth of MSMEs by conduct of All India Census of the sector, periodically in the country.

The latest census (Fourth Census) was conducted with reference year 2006-07 wherein the data was collected till 2009 and the result published in 2011. The annual average growth rate of the registered enterprises and employment of the sector between period of Third Census (2001-02) and Fourth Census (2006-07) stands at 2.61 percent and 8.6 percent respectively.

Also the total number of persons employed in the sector increased to 93.09 lakh as compared to 61.63 lakh in the Third Census, conducted with reference year 2001-02.

In another reply Virbhadra Singh informed that Micro, Small and Medium Enterprises Development Act, 2006 broadly categorises enterprises into Manufacturing Enterprises & Service Enterprises. These have been further classified into micro, small and medium based on investment in plant and machinery and in equipments respectively.

Micro and small enterprises face specific disadvantages such as inadequate liquidity, lack of access to market etc. To take care of these problems, Government has made policy provisions in the Micro, Small and Medium Enterprises Development Act, 2006.

They relate to provision for mitigating the problems of delayed payments to micro and small enterprises and preference to products and services of the micro and small enterprises in Government procurement.

Government has also formulated and notified the Preferential Procurement Policy for enabling the Micro and Small Enterprises to be a part of procurement by Government Departments and Public Sector Undertakings, the minister added.