Efforts on to boost policy support to sector: MSME secy

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Vaneeta Puncvedi | 09 Oct, 2014
Government is trying to articulate policies to support the micro, small and medium enterprise sector, said MSME secretary Madhav Lal in New Delhi on Wednesday.

We all know MSME needs supportive environment in taxation policies, man power and financial issues; capital generation is always a major problem for MSME sector. The government is trying to provide adequate policy support to the sector, said Lal, speaking at the Global SME Business Summit 2014, a two-day event organized by CII in the national capital.

He added that MSME sector's contribution to GDP will go up to 36 percent to 37 percent if the service sector units are taken into account.

At present, the manufacturing sector MSMEs contribute around 7 percent to GDP. Nearly 80 million people are in employment in these units. "MSMEs should increase their competitiveness for their maximum growth and development," said Lal.

The MSME secretary said that the Prime Minister's call for 'Make in India' will help the manufacturing sector in terms of growth and success.

Despite all traditional and other problems, the manufacturing sector is performing well, contributing nearly 40 percent of our total exports, he said. But he admitted that the sector is facing the problem of low growth.

Speaking at the event, R.C Bhargava Chairman, Maruti Suzuki India Ltd, said, "We buy 70% of our inputs from vendors from SMEs and I can say SMEs are the major reason for Maurti's success."

He added that SMEs are one of the largest sources of employment in India and the 'Make in India' programme will give a great boost to the sector.

He also viewed that MSMEs are the backbone of the economy but the quality of product, skills of their manpower and the technology they use is not as good as they should be.

He said that MSMEs must improve their competitiveness to survive in the market.