Monday, August 18, 2014: A government report has revealed that the share of MSME sector has declined sharply over the years in the country’s manufacturing output as well as GDP. In 2007-08 the contribution of the MSME sector to the total manufacturing output and gross domestic product (GDP) stood at 41.98 per cent and 7.81 per cent, respectively.
By 2011-12 a continuous decline happened and the share came down to 37.52 per cent and 7.28 per cent, respectively. In 2007-08 the percentage share of MSMes in the total manufacturing output stood at 41.98 per cent, in 2008-09 it came down to 40.79 per cent, in 2009-10 it was 39.63 per cent, in 2010-11 it was 38.48 per cent and then in 2011-12 the record shows 37.52 per cent. Apart from that, the sector’s contribution to GDP remained as 7.81 per cent in 2007-08, 7.52 per cent in 2008-09, 7.49 per cent in 2009-10, 7.42 per cent in 2010-11 and 7.28 per cent in 2011-12.
A string of measures have been announced by the new Narendra-Modi government in order to revitalise the MSME sector and for the same start-ups have been given special promotion in the Union Budget recently. These proposals include Rs 100,000 million venture capital fund creation to attract capital investment for the sector, MSMEs to be redefined by providing higher capital ceiling, setting up a technology centre network for promotion of innovation, entrepreneurship and agro-industry. Small entrepreneurs will also get special encouragement from the government as a new legal bankruptcy framework has been announced and it will be developed for SMEs. The announcement also said that a national level ‘District level Incubation and Accelerator Programme’ would also be taken up for incubation of new ideas and necessary support will be provided for accelerating entrepreneurship.
