MSME Sector Profile 2019_MSME_Sector... · 2018-12-10 · 4 • 6.33 crore MSMEs across various...
Transcript of MSME Sector Profile 2019_MSME_Sector... · 2018-12-10 · 4 • 6.33 crore MSMEs across various...
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• 6.33 crore MSMEs across various industries, employing over 11 crore people in 2017-18
• Over 6000 products ranging from traditional to high-tech items are being manufactured by the MSME Sector inaddition to provide wide range of services
28% of India’s GDP
40% of India’s Exports
45% of India’s Manufacturing
Output
21% of Employment, 2nd highest after
agiculture
`National Contribution by MSMEs
Overview
Source: Annual Report 2017-18, Ministry of Micro, Small and Medium Enterprises, Government of India
39.85%
8.75%6.94%
6.20%
3.77%
34.48%
Leading Industries: MSME Sector
Retail Trade, Except of Motor Vehicles andMotorcycles; Repair of Personal and HouseholdGoodsManufacturing of Wearing Appearel; Dressingand Dying
Manufacture of Food Products and Beverages
Other Service Activities
Other Business Activities
Others
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MSME Strengths
Make in India
■ Conducive policies and favorable incentives for foreign investors
Exports
■ Presence of SME Export Promotion Council
■ Global Demand for Value Added Products
Conducive Policies
■ Credit support
■ Quality assurance
■ Encouraging entrepreneurship
Skill India
■ An initiative to train over 40 crore people in India in different skills by 2022
Strong Local Demand
■ Growing population
■ Increasing number of large industries
■ Sector Specific Clusters
■ Special Economic Zones
■ Industrial Corridors
Digital India
■ Robust IT infrastructure
■ Transparent and integrated government services
Robust Infrastructure
Factors for MSMEs success
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Credit Support
• Credit Guarantee Fund for Micro and Small Enterprises
Guarantee cover of 75% of the credit facility up to INR 50 lakh and 50% of the credit exposure above INR 50 lakh and below INR 1 crore
• Micro Finance Programme
7.5% of the loan amount is provided by central government through SIDBI
• Providing financial assistance on International Cooperation
Up to 95% of airfare and space rent for entrepreneurs for participation in international events and to MSME business delegations
• Financial assistance to set up new enterprises under PMEGP
Subsidy is provided at 15% and 25% for Urban and Rural Areas respectively for beneficiary belonging to general category and 25% and 35% for Urban and Rural Areas respectively for beneficiary belonging to Special Category*
• Funding support for implementing ‘Lean Manufacturing’ projects
80% of the cost of lean manufacturing consultant
Government of India Initiatives (1/3)
Sources: http://msme.gov.in/web/portal/Scheme.aspx . Special Category consist of SC / ST / OBC / Minorities / Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas
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Government of India Initiatives (2/3)
Assistance for Quality Control and Standardization
• Financial assistance under Performance and Credit Rating Scheme
75% of the fee is reimbursed for carrying out rating through empanelled rating agencies
• Funding support for conducting ‘QMS (Quality Management Standards) Awareness’ workshops
• Reimbursement of registration fee for Bar coding
Promoting Entrepreneurship
• Support for setting up of ‘Business Incubators’
• Scheme for 'Entrepreneurship Skill Development Programmes (ESDP)'
• Scheme for 'Supporting 5 selected universities / colleges to run 1200 entrepreneurship clubs per annum'
• Scheme for 'Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme to Women'
Sources: http://msme.gov.in/web/portal/Scheme.aspx
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Government of India Initiatives (3/3)Skill Development
• Assistance to Training Institutions Scheme
• Funding support for setting up ‘Mini Tool Rooms’ and Training Centers under PPP mode
• Scheme for 'Strengthening of Training Infrastructure of existing and new Entrepreneurship Development Institutions'
Technical Support
• Scheme for 'Marketing Assistance and Technology Up-gradation of MSMEs'- an NMCP (National Manufacturing Competitiveness Programme) Scheme
• Scheme for 'Technology and Quality Upgradation (TEQUP) Support to MSMEs'- an NMCP Scheme
• Scheme for 'Promotion of ICT in Indian Manufacturing Sector (ICT)'- an NMCP Scheme
Marketing and Design Assistance
• Marketing Assistance Scheme
• Funding support for implementing ‘Design’ projects
• Funding support for conducting assessment of IPR related needs of MSMEs
Others
• Scheme for 'Micro & Small Enterprises Cluster Development Programme (MSE-CDP)
• National Awards under various category
Sources: http://msme.gov.in/web/portal/Scheme.aspx
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A manufacturing powerhouse
1stNumber of Industrial
Entrepreneur Memorandums (IEMs) filed and implemented
in India in the last 10 years
Gujarat’s contribution to India in key products (% output)
91%
78%
65% 62%
53%
32%26%
19%
Gujarat is a leader in Chemicals, Petrochemicals, Dairy, Drugs and Pharmaceuticals, Cement and Ceramics, Gems and Jewellery, Textiles and Engineering
35.5%Share in
Gujarat’s GSDP in 2016-17
Source: Gujarat Socio – Economic Review 2017-18; DIPP; ASI 2015-16
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Leading FDI destination
Source: DIPP
15%
11%
10%
10%
6%
48%
Automobiles
Telecommunications
Cement & Gypsum Products
Power
Chemicals (other than Fertilizers)
Others
Top 5 sectors attracting maximum FDI inflows(Jan 2000 to Mar 2017)
• Gujarat was amongst the top three FDI attracting states in India in 2016-17
• Gujarat received FDI inflows worth INR 113,347 Crore (USD 17.44 billion) between Apr 2000 and Dec 2017, accounting for 5% of the total FDI inflow into India
FDI grew at a CAGR of ~58% between 2013-14 and 2016-17
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Gujarat ranks among the top three in the country across various industrial indicators
Source: Annual Survey of Industries
17.01 16.82
10.19
6.38 6.24
Maharashtra Gujarat Tamil Nadu Karnataka UttarPradesh
Percentage share in India's total output
19.9716.86
10.2
6.02 5.13
Percentage share in India's total net value addition
16.01
12.110.48
7.01 6.56
Tamil Nadu Maharashtra Gujarat AndhraPradesh
UttarPradesh
Percentage share in India's total factories
16.2413.79
10.92
7.06 6.57
Percentage share in total persons engaged in India
16.82%of India’s total
industrial output
16.86%of India’s total
net value addition
10.48%of India’s total
factories
10.92%of total persons
engaged in India
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Gujarat ranks among top three states in industrial output in leading MSME manufacturing sectors
Pharmaceuticals
Chemicals
Textiles
Food Products
Machinery and Equipment
Rubber and Plastic Products
Source: Annual Survey of Industries Statistics 2015-16
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Gujarat rated as Top Performing State in 2017, as per NCAER State Investment Potential Index
Source: National Council for Applied Economic Research (NCAER)
• Gujarat secured 1st rank among 21 peer states on key factors critically linked to investments, industrial and economic activity in any state
• Overall, Gujarat secured top position on six parameters assessed:• Land• Labour• Infrastructure• Economic climate• Political stability & Governance• Business perceptions
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106 activity clusters have been identified across the state
CategoryNumber of
Clusters
Engineering 21
Chemicals 23
Textiles 18
Mineral based
industry
16
Agro &Food
Processing
07
Others 21
Others
Paper Products
Plastic Products
Textile Industry
Food Products
Chemical Industry
Engineering
Mineral Products
MSME clusters in Gujarat
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Sources: Industries Commissionerate , Government of Gujarat
IndustryTotal MSMEs
Registered from 2006-2015
Textiles 105463
Machinery and parts except electrical 30159
Mining and Quarrying 6578
Food Products 9106
Chemical & chemical Products 12131
Wood Products 4623
Rubber & Plastic Products 8784
Non-metallic mineral Products 6362
Basic Metal Industries 25872
Paper Products & Printing 6837
Electrical Machinery and Apparatus 7780
Transport equipment and parts 3114
Leather Products 6762
Beverages, Tobacco & Tobacco Products 1625
Service Activities 47816
Trading Activities 72920
Others 20416
Total 376348
Manufacturing63%
Service Activities
Trading Activities
19%
Others5%
Industry wise Break up of MSMEs (up to 2nd Oct 2015)
Sector wise distribution of MSMEs in Gujarat
17Note : The data for 2015-16 is up to 20-Oct-2015.Sources: Industries Commissionerate , Government of Gujarat,
NSS 73rd Round
• Total number of MSME(s) registered in Gujarat from 2006 to Sept. 2015: 3,21,181
• Since, 20-Oct-2015 new MSMEs are registered under Udhyog AadharMemorandum (UAM) instead of EM-II.
• Total 2,93,358 MSMEs have been registered under UAMs in Gujarat till date
Micro – 2,39,037 ; Small – 52,404; Medium – 1,917
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
No.of Units 27940 79721 147955 206581 270740 321181
Investment ( Rs. In Lacs) 890264 2051714 3343874 4617159 5976188 7231582
Employment 264867 627738 1008825 1392067 1802500 2064244
0
50000
100000
150000
200000
250000
300000
350000
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
Cumulative Growth of MSMEs in Gujarat
Growth of MSMEs in Gujarat
Rise in registrations in MSME units between Aug 2016 and Dec 201786%
3.3 Million + MSME units in Gujarat according to NSS 73rd Round (2015-16)
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Support for MSMEs strengthened in Gujarat 2018-19 budget
Rs. 450 Crore for cottage and rural industries
Rs. 35 Crore for promotion of
Khadi
Rs. 16.5 Crore for marketing of goods produced
by artisans
Rs. 50 Crore allotted as Start-Up
fund for MSMEs
Source: Gujarat Finance Department
Rs. 843 Croreallocated towards
development of MSMEs
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Government provides holistic support to MSMEs
Financial Assistance
• 50% decrease in price of
plots up to 3,000 sq m offered to MSME units as of May 2018
• Industrial infrastructure Development work of Rs 975 crore to be undertaken
under Gujarat Investment Promotion Program
Sources: Industries Commissionerate, Government of Gujarat
• MSMEs facilitation / help desks in 11 cities – Ahmedabad, Vadodara, Surat, Gandhinagar, Rajkot, Bhavnagar, Valsad, Bharuch, Anand, Mehsana and Bhuj
• To provide guidance & information on various schemes of the state and central government
• To create an enabling ecosystem for MSMEs
• To facilitate and provide hand holding support for the development & growth of MSMEs in Gujarat
MSME Commissionerate MSME facilitation desks
Assistance to MSMEs under various policies
• Capital Investment Subsidy• Interest Subsidy• Assistance for Venture Capital• Technology Acquisition Assistance • Assistance for Environment
Protection Measures• Special incentives for women
entrepreneurs
Development of MSME Parks / sheds
• 4 dedicated MSME parks in Sanand, Juned, Halol and Bardoliwith plot size in the range from 250 – 500 sq.mtr.
• Dedicated Women industrial park in GIDC Sanand spread across 18.3 ha
Skill Development• Skill development assistance
provided to MSMEs
• More than 50 Skill Up-gradation Centers (SUCs) have been developed for imparting training in various GIDC estates
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A robust policy infrastructure to support MSMEs
Aerospace and Defense Policy 2016
Agri-Business Policy 2016
Health Policy 2016
Electronics Policy 2016
IT Policy 2016Biotechnology
Policy 2016
General Incentives Scheme 2016
Industrial Policy 2015/2016
Startup Scheme 2015
Wind Power Policy 2016
Tourism Policy 2015
Manufacturing Policy 2013
Textile Policy 2012/2013
Solar Power Policy 2015
Garment & Apparel Policy 2017
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Sr no. Scheme Incentive
1 Assistance on Capital Investment Subsidy
10% (upto 15 lakhs) -15% (upto 25 lakhs) on term loan amount disbursed by bank/ financial institution
2 Assistance for Interest Subsidy 5-7% Interest Subsidy
3 Assistance for Venture Capital 20% of Project Cost provided as promoter funding
4 Assistance for Quality Certification 50% of fees/ costs incurred for obtaining various quality control approvals
5 Assistance for Technology Acquisition Up to 50% of the cost of acquisition of new technology
6 Assistance for Patent Registration Up to 75% of total cost/expenditure incurred on obtaining the patent
7 Assistance for Saving in Consumption of Energy & Water
Up to 75% cost of energy/water audit recognized institution/consultant
Incentives to MSMEs under Gujarat Industrial Policy 2015 (1/2)
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Sno. Scheme Incentive
8 Assistance to SMEs for raising Capitalthrough SME exchange
Up to 25% of expenditure incurred on raising funding from the SME exchange
9 Assistance for Reimbursement of CGTMSE Fees
Reimbursement of 100% Service Fee paid on collateral free loans of INR 1 crore to banks and financial institutions by women entrepreneurs, SC/ST, physically challenged
10 Rehabilitation of Sick Enterprises 50% of expenditure incurred on preparation of diagnostic report from expert/expert agency as per the Draft Rehabilitation Scheme
11 Assistance for encouraging ‘Green Practices & Environmental Audit’
• Financial assistance of up to 75% for audit fees and up to 25% of cost of monitoring systems
• Financial assistance of 35-50% of cost of Environment Management System and Occupational Safety equipment
12 Market Development Assistance Financial assistance for rent payment for participation at State/ National/ International level exhibitions
Incentives to MSMEs under Gujarat Industrial Policy 2015 (2/2)
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Skillset development
• Intake capacity of 71,799 engineering students
• Over 7 lakh graduates added to the state talent pool every year
• More than 8 lakh candidates have been imparted computer & IT
training through eMPOWER
• Annual capacity to train more than one million candidates
• 800 Industrial Training institutes (ITIs)
• Centres of Excellence (CoE) funded by World Bank under
Vocational Training Improvement Project (VTIP) scheme
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■ Promotes industrial development by bringing about industrial reforms
■ Monitors and Controls functions for planned industrial development
IndustriesCommissionerate
(IC)
■ iNDEXTb was set up as a ‘facilitating’ organization to ensure smooth and hassle-free experience for a prospective investor
■ iNDEXTb provides information to the public in general and entrepreneurs in particular, regarding the opportunities available in the State of Gujarat for industry, commerce, trade, business openings and participation therein
Industrial Extension Bureau
(iNDEXTb)
■ GIDC has been created for securing the orderly establishment and organization of industries in industrial areas and industrial estates in the state
■ To fulfill the above mandate, the Corporation has established 202 industrial estates, ranging from mini to mega sizes. It has also developed 5 Special Economic Zones
■ GIDC is now establishing 11 Special Investment Regions in tune with the changing economic and industrial scenario
Gujarat Industrial
Development
Corporation
(GIDC)
Organizations for promotions of MSMEs
Source: http://ic.gujarat.gov.in/, http://www.indextb.com/, http://www.gidc.gov.in/
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MSME-DI (formerly Small Industries Service Institute), Ahmedabad covers the entire State of Gujaratcovering 33 districts and Union Territories of Dadra & Nagar Haveli, Daman and Diu.
The Institute with its 2 Branch, Small Industries Service Institutes, one each at Rajkot and Silvassa and oneField Testing Station, Ahmedabad, serves the small scale industries in these areas
http://www.msmediahmedabad.gov.in/
Micro, Medium and Small Industries Development Institute
■ The program, 'SME Banking & Financial Services' has been designed to facilitate an in-depth understanding and develop skills in assessing financial needs of SMEs and designing appropriate financial intermediation
http://www.ediindia.org/
Entrepreneurship Development Institute of India
■ To develop entrepreneurs in state at urban and rural areas so that they can start their manufacturing or service venture for the economic growth and become self employed as well as provide employment to others.
■ The Entrepreneurship Development Program (EDP) develops confidence in a person to establish his own venture and manage it successfully
http://www.ced.gujarat.gov.in/
Center for Entrepreneurship Development (CED)
Institutes for Assistance to MSMEs
Sources: http://www.msmediahmedabad.gov.in/, www.ediindia.org/, http://www.ced.gujarat.gov.in/
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Ease of Doing Business
Ease of Doing Business in Gujarat
• Pre-defined timelines for 90 business related applications
• Robust monitoring mechanism at District and State level
Grievance Redressal Mechanism
Gujarat Single Window Clearance Act 2017
Features of Investor Facilitation Portal (IFP)• Create/ add multiple projects
using single login id
• Common Application Form
• SMS/ Email alerts
• Digi-Locker to upload documents
• Online Tracking of application
• Integrated payment gateway
• Digitally Signed Certificates One Stop Information on IFP• Process Flows, Checklists
and Timeline for 90 Applications
• GIS based Land Banks
• Sector specific Policies
• Sector Profiles
• Bureau of Indian Standards
• Verify third party Certificates
• Track/ Raise online grievance
• Time bound service delivery in 7 days
• Dedicated Toll free number
• Dedicated grievance redressal officers
www.ifp.gujarat.gov.in
Source: Gujarat Investor Facilitation Portal
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Consistently ranked amongst top 3 Indian states in Ease of Doing Business
rankings
Govt. of Gujarat launched the ‘Gujarat Single Window Clearance Act, 2017’,
to ensure that all necessary clearances are provided to investors in a time-bound manner
'Investor Facilitation Portal‘ - a single window online platform which
acts as the first point of contact for any prospective investor looking to invest in Gujarat
Gujarat: Best in India for doing business
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1st
Complying with environmental
procedures
2nd
• Allotment of land • Complying with
labor regulations• Carrying out
inspections
3rd
Enforcing Contracts
Source: DIPP statistics and World bank Statistics Ranking
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Setting up business in Gujarat
Step 2:
Land Related approvals
1. Land Allotment – GIDC
2. Property Registration (in Case of Non GIDC)
3. Change of Land Use
4. Tree cutting and Tree Transit permission
Step 3:
Pre Establishment Approvals
1. Consent to Establish under Air & Water Act by GPCB
2. Building Plan approval by ULB / GIDC
3. Approval of electrical plan by Chief Electrical Inspector (for HT connections)
4. Approval of Factory Plan by Directorate of Industrial Safety and Health (DISH)
5. Registration under Building and Other Construction workers Act
6. Electricity Application
7. Water Connection Application
Step 4:
Pre-operation Approvals
1. Boiler registration, Boiler License
2. Boiler Erector Certificate
3. Boiler Manufacturer Certificate
4. Consent to Operate under Air & Water Act by GPCB
5. Building Use permission by ULB / GIDC
6. Certification of Electrical Installation by Chief Electrical Inspector
7. Factory License by Directorate of Industrial Safety and Health (DISH)
8. License for contractors under provision of The Contracts Labour Act
9. Registration of principal employer's establishment under provision of The Contracts Labour Act
Step 1:
Company Registration
1. Udyog Aadhar / IEM
2. Company Registration / Partnership firm
3. Apply for PAN
~ 45 – 60 days each for Step 2, 3 & 4
All applications can be made at Single Window Portal www.ifp.gujarat.gov.in Step 1 takes < 1 Week
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Automotive
• Automotive electronics
• automotive components
• Defence automotive
• Rubber and chemicals supply to the tyre
Pharmaceuticals
• Generics and API manufacturing
• Contract research
• Nutraceuticals and nutracosmetics
IT/ITes
• Cloud Computing
• Social media and mobility
• Data analytics services
Electronics
• ESDM including semiconductor design, electronic components design and hi-tech manufacturing
• Electronic components
Healthcare
• Low cost medical devices
• Medical consumables Diagnostic labs
Textiles
• Raw fabric and dye production
• Processing & Packaging
Engineering and Process Equipment
• Engineering solutions segments like chemicals and petrochemicals, pharma and automotive
• Next generation automation tools
• Green Engineering
Chemicals
• High performance chemicals
• Opportunities PCPIR
• Petrochemicals
• Textile chemicals
Agro and Food Processing
• Processed and packaged food
• Dairy products
• Cold chain storage
Defense Offset:
• New age information systems, communication platforms, simulators and equipment
Considering the expected growth trends in the top industry sectors and areas, MSMEs can look to expand their share in some of the industries mentioned below, in times to come
Future outlook and investment opportunities