'Contribution of MSME sector in Indian economy increasing'

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SME Times News Bureau | 08 May, 2015
The estimated contribution of Micro, Small and Medium Enterprise (MSME) manufacturing sector to Gross Domestic Product (GDP), during 2012-13, is 7.04 percent, Minister of State, Micro, Small and Medium Enterprises, Giriraj Singh informed in a written reply to a question in Rajya Sabha on Thursday.

He said, "On the basis of the data on Gross Domestic Product (GDP) published by Central Statistics Office (CSO) collected as per the revised methodology suggested by CSO and final results of the latest MSME Census (Fourth Census), conducted (with base reference year 2006-07), wherein the data was collected till 2009 and results published in 2011-12, the estimated contribution of MSME manufacturing sector to GDP, during 2012-13, is 7.04 percent."

However, taking into account the contribution of MSME services sector, which is estimated at 30.50 percent during 2012-13, the share of MSME sector in GDP of the country, during 2012-13, is 37.54 percent.

The MSME Sector has emerged as a vibrant and dynamic sector producing a vast range of products starting from basic agro products to high precision engineering tools and equipments.

The growth rate of MSME manufacturing has been well above the growth rate of overall manufacturing in the last few years.

MSMEs need to register themselves so as to be a part of the organized segment. Over the years in spite of the efforts of the Government, the large unorganized sector has not been able to fully benefit from the policies and programmes of the Government.

Efforts are being taken by the Ministry of MSME in consultation with the States to simplify the registration procedure through online filing of Entrepreneur Memorandum (EM-I & EM-II).

The Ministry is promoting competitiveness and productivity in the MSME space through the implementation of various Schemes, especially the National Manufacturing Competitiveness Programme (NMCP) which aims at enhancing the competitiveness of Indian manufacturing sector by reducing their manufacturing costs through better space utilization, scientific inventory management, improved process flows, reduced engineering time etc.

Furthermore, the Tool Rooms and Technology Development Centres located in different parts of the country have undertaken significant technological development and have produced state of art tools for the consumption of the sector.

At present there are 18 Tool Rooms and Technology Development Centres all over the country and 15 new tool rooms are coming up with the World Bank assistance during the 12th Five Year Plan Period.

The Credit Linked Subsidy Scheme (CLCSS) through the provision of a capital subsidy of upto Rs. 15 lakh is also encouraging higher productivity by helping the adoption of superior technology. he added.