Sircar indianmsm es

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Sircar indianmsm es

  1. 1. MICRO, SMALL AND MEDIUM ENTERPRISES ( MSME ) INDIAN SCENARIO Jawhar SircarAdditional Secretary & Development Commissioner Ministry of Micro, Small & Medium Enterprises Government of India 1
  2. 2. MSME- INDIAN SCENARIOIndia: a large country with federal structurePopulation in excess of one billionPlanned economyLiberalised economy since 1991Lowering of tariff barriers & onset of globalisationGovt. interventions and assistance programmesbegan in 1950sMSME now a vibrant sector 2
  3. 3. MSME- INDIAN SCENARIO12.5 million MSMEs • Employ 30 million People • Contribute approx. 50% of Industrial Production • Contribute approx. 45% of Exports 3
  4. 4. MSME- INDIAN SCENARIOScale of operation (2004-05) MSE MSMEExports : $ 33 Billion $ 56 BillionProduction: $ 130 Billion $ 160 BillionReserved items: $ 114 Billion(for exclusive manufacture by MSMEs) Industrial Growth Rate: 11.5%Growth Rate SSI Growth Rate : 13.0% 4
  5. 5. MSME- INDIAN SCENARIO TRENDS IN GROWTH INDUSTRIAL YEAR GDP% SSI SECTOR % SECTOR % 1999-00 6.4 6.5 8.16 2000-01 4.4 4.9 8.09 2001-02 5.6 2.7 6.082002-03* 4.4 5.3 7.412003-2004 8.5 7.0 8.592004-2005 6.9 8.4 9.962006-2007 9.0 11.5 13.00 5
  6. 6. MSME- INDIAN SCENARIO PRODUCTS OF SSIs More than 8000 products 2 1 .8 435 12% 6 1 0 .4 4 6 .0 5 8 .4F o o d P ro d u c ts C h e m ic a l & C h e m ic a l P r o d u c t sB a s ic M e t a l I n d u s t r y M e ta l P ro d u c tsE le c t r ic a l & M a c h in e r y P a r t s R u b b e r & P la s t ic P r o d u c t sO th e rs 6
  7. 7. MSME- INDIAN SCENARIOMAJOR EXPORT PRODUCTS READYMADE GARMENTS CHEMICALS AND PHARMACEUTICALS ENGINEERING GOODS PROCESSED FOODS LEATHER PRODUCTS MARINE PRODUCTS 7
  8. 8. MSME- INDIAN SCENARIOCurrent 5 Year Plan (2007-2012) : • MSMEs to grow @ 13% per annum • & to generate additional 1.3 million jobs per annum 8
  9. 9. MSME- INDIAN SCENARIOMSE development as a tool of state policy aims at : Generation of Employment Dispersal of Economy Utilization of local skills and resources Meet demands locally, as feasible 9
  10. 10. MSME- INDIAN SCENARIONEW ACT: ClassificationConcept of ‘Enterprises’ as against ‘Industries’Enterprises classified broadly into those: (i) engaged in the manufacture & (ii) engaged in services 10
  11. 11. MSME- INDIAN SCENARIOMachinery Cost in MANUFACTURING ENTERPRISES :- Micro - Up to $ 55,000- Small - $ 60,000 to $ 1.2 million- Medium - $ 1.2 million to $ 2.5 million 11
  12. 12. MSME- INDIAN SCENARIOEquipment cost in SERVICE ENTERPRISES :- Micro – Up to $ 25,000- Small –$ 25,000 to $ 500,000- Medium –$ 500,000 to $ 1.25 million 12
  13. 13. MSME- INDIAN SCENARIOPolicy support for MSEsLegislationCredit supportFiscal supportSmall Industry Cluster Based ProgrammeTechnology & Quality UpgradationMarketing Support ProgrammesEmpowerment of Women-owned EnterprisesStatistical Data for decision makingTraining & Exposure 13
  14. 14. MSME- INDIAN SCENARIOMechanism for promotion & developmentFederal Government responsible for policy, creditflow, centrally sponsored schemesState Governments responsible for implementation,infrastructure development and monitoringCapacity building, training, consultancy support,technology demonstration & transfer, datacompilation & maintenance and marketing supportedby Federal Government as well as State Governments 14
  15. 15. MSME- INDIAN SCENARIOInfrastructureIndustrial infrastructure planned & developed by StateGovernments Industrial land, plots, sheds and workplaces Roads Power distribution Institutional buildingsInfrastructure supported by Federal Government Communication Power generation Funding to States and private organisations for infrastructure development Transportation 15
  16. 16. MSME- INDIAN SCENARIOPromotional needsAwareness buildingPotential assessment & product identificationConsultancyTechnology Exposure , Documentation & adoption Demonstration and common facilitiesTraining Entrepreneurship development Management development Skill upgradation 16
  17. 17. MSME- INDIAN SCENARIOPromotional needs (contd..)Market development Training Market surveys Export avenuesSpecialized institutions Product / process based Services based Raw material based 17
  18. 18. MSME- INDIAN SCENARIOSupport programmes and schemesAssistance for Entrepreneurship DevelopmentCredit Guarantee Fund Scheme for Small IndustriesMicro Finance programmeCredit Linked Subsidy Scheme for Tech upgradationTool Rooms for Dies, Moulds, Jigs, FixturesTesting Stations for Calibration 18
  19. 19. MSME- INDIAN SCENARIOSupport programmes and schemesCluster Development ProgrammeQuality Upgradation in small scale sector, throughincentive for ISO 9000 & 14001 CertificationTrade Related Entrepreneurship Assistance forwomenSetting up of Testing Centers by IndustriesAssociations 19
  20. 20. MSME- INDIAN SCENARIOThe availability of policy and developmental support hasenabled rapid and sizeable development of Micro & SmallEnterprises in IndiaChanges in policy & support have been effected as peremerging needs of globalization, to enable SSI inmaintaining competitive edge WTO Compatibility Availability of Finance Technology Upgradation Skill Development 20
  21. 21. JAWHAR SIRCARjawharsircar@yahoo.co.in 21
  22. 22. THANK YOU 22
  23. 23. 2 23
  24. 24. COOPERATION AVENUES FOR DEVELOPMENT OF SMALL SCALE INDUSTRIES IN PERU July 2006 - Peru Presentation by Jawhar SircarAddl. Secretary & Development Commissioner (SSI) Ministry of Small Scale Industries, Govt. of India 24
  25. 25. DEVELOPMENT OF SSIIndian experience of SSI development is asuccessful and sustainable model Economic & Industrial development in India Addressing the unemployment problem.India will be happy to cooperate and share itsexperiences of SSI development with PERU 25
  26. 26. DEVELOPMENT OF SSICooperation AvenuesPolicy planningCredit MechanismAssessment & evaluation studies Industrial potential Market potential Trade practicesTechnology needs & transfer Implementation of sectoral programmesInfrastructure developmentInstitutional mechanismTraining 26
  27. 27. DEVELOPMENT OF SSICooperation Avenues with PeruPolicy planning Assessment of Policy needs Policy formulation Optimization of resources Enunciation of economic & industrial growth targets Development support policy as per national needs 27
  28. 28. DEVELOPMENT OF SSICooperation Avenues with PeruCredit Mechanism Credit Policy & Structure Assessment of Credit needs Formulation of Credit Guarantee Scheme 28
  29. 29. DEVELOPMENT OF SSICooperation Avenues with PeruAssessment & evaluation studies Industrial potential Resource potential Market potential Trade practices Promotional initiatives 29
  30. 30. DEVELOPMENT OF SSICooperation Avenues with PeruInfrastructure development Assessment of industrial infrastructure needs Development of industrial infrastructureInstitutional mechanism Identification & Assessment of Institutional support needs Project Plan for desired institutions Establishment of specialized institutes/centers 30
  31. 31. DEVELOPMENT OF SSICooperation Avenues with PeruTraining Identification & Assessment of Training needs Training of trainers Establishment of training centers Specific training programmes in India for Peru entrepreneurs Expertise to conduct training programmes in Peru 31
  32. 32. DEVELOPMENT OF SSIIndia will be happy to cooperate for developmentof SSI in Peru as per needsA working group could be constituted toformulate an understanding for sustainabledevelopment 32
  33. 33. THANK YOU 33
  34. 34. THANK YOU 34

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