Thursday, 20 February 2014

MSME Sector

Ministry of Micro, Small and Medium Enterprises (MSME)
An outlay of Rs. 24,124 crore has been earmarked for XIIth Five Year Plan for Ministry of Micro, Small and Medium Enterprises (MSME) which would be spent for the growth of MSME sector. 

The outlay of XIIth Five Year Plan is 109.8% higher than the the XIth Five Year Plan allocation which was Rs.11,500.00 crore. 

As per Fourth All India Census of MSMEs (2006-07) wherein data was collected till 2009 and published in 2011-12, the estimated contribution of manufacturing in MSME to GDP showed a slight decline during 2009-11. 

The share was 7.52% in 2008-09, 7.49 in 2009-10 and 7.42% in 2010-11. Based on the above census report and Economic Census 2005 conducted by Central Statistics Office, employment in rural MSMEs was 309.41 lakh upto 2009 which was 49.23% of the total employment in total MSME Sector. Similarly, the share of gross output for rural MSMEs was 41.79% upto 2009. 

Recently, Government has provided major protection to the MSME sector by notifying Public Procurement Policy, in March, 2012 whereby Central Government Ministries.

 Departments and Public sector Undertakings are mandatorily required to procure of minimum of 20% of their total annual purchases of products produced and services rendered by Micro and Small Enterprises and notifying, in December, 2013, the provisions to MSME units to continue non-tax benefits for three years even after their graduation to a higher category. 

Besides, various schemes are also being implemented by Ministry of MSME to make MSMEs sustainable in the competitive market viz. Credit Linked Capital Subsidy Scheme (CLCSS) which reduces the financing cost of an enterprises and National Manufacturing Competitiveness Programme (NMCP) which aims at reducing the manufacturing cost of MSMEs and improving quality of their products. 

This information was given by the Minister of State (Independent Charge) for Micro, Small and Medium Enterprises, Shri K. H. Muniyappa in a written reply to a question in the Lok Sabha today. 

You May Also Like

loading...

Popular posts