The role of Micro, Small and Medium Scale Enterprises in India 11 December 2008 Consulate General of...
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![Page 1: The role of Micro, Small and Medium Scale Enterprises in India 11 December 2008 Consulate General of India Hong Kong 1.](https://reader035.fdocuments.us/reader035/viewer/2022070308/551bf8755503469e4f8b47bd/html5/thumbnails/1.jpg)
11 December 2008Consulate General of India
Hong Kong
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As elsewhere, MSMEs are accepted as the engine of economic growth and for promoting equitable development. MSMEs are credited with generating highest rates of employment growth and account for a major share of industrial production and exports.
MSMEs have consistently registered higher growth rates compared to the overall industrial sector.
A major advantage of the sector is its employment potential at low capital cost.
Additionally, the sector is labour intensive - estimates are that it is almost 4 times higher than the large enterprises.
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Small Scale Unit USD 100,000
Medium Scale Unit USD 200,000
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Estimated that , in terms of value, MSMEs account for about 39% of the manufacturing output and around 33% of the total export of the country.
Presently, this sector employs an estimated 31 million persons spread over 12.8 million enterprises.
Accounts for 91% of total Industrial Units Over 21,400 units are ISO 9000/14001 certified Wide range of Products - Over 8000
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TRENDS IN GROWTH4
YEAR GDP%INDUSTRIAL SECTOR
%
MSME SECTOR %
2000-01 4.4 4.9 8.09
2001-02 5.6 2.7 6.08
2002-03 4.4 5.3 7.41
2003-04 8.5 7.0 8.59
2004-05 6.9 8.4 9.96
2005-06 8.0 8.1 10.4
2006-07 9.0 11.5 13.00
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PRODUCTS OF MSMEsMore than 8000 products
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Readymade Garments
Chemicals and Pharmaceuticals
Engineering Goods
Processed Foods
Leather Products
Marine Products
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MAJOR EXPORT PRODUCTSMAJOR EXPORT PRODUCTS
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Generation of Employment
Dispersal of Economy
Utilization of Local Skills and Resources
Meeting Demands Locally, as Feasible
MSME AS TOOL OF STATE POLICYMSME AS TOOL OF STATE POLICY
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2006 ACT : CLASSIFICATION2006 ACT : CLASSIFICATION
Concept of ‘Enterprises’, as against ‘Industries’
Enterprises are engaged either in MANUFACTURE or SERVICES
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Protection – Hundreds of items reserved for exclusive production
High Tariff Barriers to protect local units Purchase Preference by Government Equity / Foreign Investment Restrictions NOW, almost all gone
MOVE FROMPROTECTION TO COMPETITION
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Benefits from JVs/TCs to foreign partners
Subjective benefits to Indian SMEs from JV/TCs
Improvement in Profitability/cost competitiveness
Market knowledge
Growth in overseas business/exports Brand reputation
Growth in domestic market share Managerial skills
Higher productivity and resource utilization
Credibility
Getting access to quality labour pool Minimization of risks
Strong research capability Others
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By States
Industrial land, plots, sheds and workplaces Roads Power distribution Institutional buildings
By Federal Government
Communication Power generation Funding to States / Private players Transportation
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GENERAL INFRASTRUCTURE SUPPORTGENERAL INFRASTRUCTURE SUPPORT
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Thank you for your attention
For more information, please contact us
Consulate General of India in Hong Kong 16-D, United Centre,
95 Queensway,Hong Kong
Tel: +852 28664027Fax: +852 28664124
E-mail: [email protected]
Website: www.indianconsulate.org.hk
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GDP (at current prices) US$ 830 billion
GDP Growth Rate 9.4%
PPP 4th largest economy; US$ 4.2 trillion
Per capita Income (2006-07) (current prices)
US$ 651
FDI (2006-07) US$ 19.5 billion
FII (2006-07) US$ 7 billion
Exports - (April 06 - March 07) (April-October 07)
US$ 124.6 billion (up 21%)US$ 85.5 billion (up 21%)
Imports - (April 06 - March 07) (April-October 07)
US$ 181.3 billion (up 26.4%) US$ 129.9 billion (up 25%)
Main trading partners USA, China, EU, UAE, Saudi Arabia Singapore, Japan
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IndiaIndia ChinaChina
Area (m kmArea (m km22)) 3.33.3 9.69.6
Arable area (m kmArable area (m km22)) 1.601.60 1.25 1.25
Population (billion)Population (billion) 1.01.0 1.31.3
GDP by sector:GDP by sector:
Services (%)Services (%) 54.654.6 39.539.5
Agriculture (%)Agriculture (%) 17.517.5 11.811.8
Industry (%)Industry (%) 27.927.9 48.748.7
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