Marginal drop in estimates of MSME contribution to India’s exports in FY2013-14

 The Dollar Business Bureau The estimated share of MSME (Micro, Small and Medium Enterprises) sector’s contribution in India’s total export for the year 2013-2014 dipped marginally to 42.40% from 43% both for the financial years 2011-12 and 2012-2013. “The estimates were arrived based on the export data maintained by Director General of Commercial Intelligence & Statistics, Ministry of Commerce,” said Giriraj Singh, Minister of State, Micro, Small and Medium Enterprises. The estimated contribution of MSME sector (including service segment) to GDP during 2010-11, 2011-12 & 2012-13 are 36.69%, 37.97% & 37.54% respectively. The estimated contribution of manufacturing MSME output in manufacturing output of the country during 2010-11, 2011-12 & 2012-13 are 38.50%, 37.47 & 37.33% respectively.  The total employment in the sector increased to 805.24 lakh as compared to 249.33 lakh in the Third All India Census of Small Scale Industries, conducted with reference year 2001-02, which is seen growing at 26.42% annually, taking into account additional coverage under the sector. Stating that it is generally believed that a large number of MSMEs are using outdated technology because of lack of sufficient finance, lack of access to modern technology, absence of in-house research & development and the State/UT-wise details regarding the use of outdated technology is not maintained, the Minister said, “ For upgradation of technology, this Ministry is implementing Credit Linked Capital Subsidy Scheme (CLCSS). Under CLCSS, 15% upfront subsidy (subject to maximum of Rs.15.00 lakhs) is given to micro and small enterprises for upgradation of technology.   For more transparency and better implementation of CLCSS, Online Application and Tracking System was introduced for submission of applications with effect from October 1, 2013.” He also added that in order to facilitate technology upgradation and enhance competitiveness of MSMEs, the Ministry, under the flagship scheme of National Manufacturing Competitiveness Programme (NMCP), is implementing schemes such as Lean Manufacturing Competitiveness Scheme, Design Clinic, Technology and Quality Upgradation Programme (TEQUP) and Quality Management Standards (QMS) and Quality Technology Tools (QTT). Further, this Ministry is implementing Micro & Small Enterprises Cluster Development Programme (MSE-CDP) for promotion / development of infrastructure to develop infrastructure, improve productivity and competitiveness of MSEs by way of  preparing Diagnostic Study Report, Soft Intervention, Detailed Project Report, Hard Intervention/ Common Facility Centers (CFCs) and Infrastructure Development, the Minister concluded.  

This article was published on March 09, 2015.