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World SME Conference 2011


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Mr. Rajeev Karwal, Founder Director, Milagrow Business & Knowledge Solutions Presentation on "Effectiveness of Government Policies for the MSME Sector in India"

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World SME Conference 2011

  1. 1. Effectiveness of Government Policies for the MSME Sector in India 26 th March 2011 “ Reflecting the situation at the Grassroots Level”
  2. 2. Approach <ul><li>Survey was conducted with MSMEs. </li></ul><ul><ul><li>Respondents belonged to different geographies and were spread across the nation </li></ul></ul><ul><ul><li>Size of the organizations of the respondents was spread between 10 lakhs to 5 crore </li></ul></ul><ul><ul><li>The respondents operated in different industries </li></ul></ul><ul><li>With respect to several initiatives of the government, the respondents were questioned to determine: </li></ul><ul><ul><li>Levels of awareness </li></ul></ul><ul><ul><li>Extent of people who have availed them </li></ul></ul><ul><ul><li>Experiential Rating </li></ul></ul>
  3. 3. High levels of unawareness of MSME Act The awareness about the MSME Development Act at the grassroots level has increased from 25% to 41% during the last 1 year but still 59% MSMEs are unaware
  4. 4. Availed benefits of Government Initiatives
  5. 5. Government Schemes: Benefits availed by MSMEs
  6. 6. Effectiveness Rating of the MSME Schemes Scheme East North South West Total ISO 9000/14001 Certification Fee reimbursement Scheme 2.97 3.9 3.05 3.04 3.07 MSME Cluster Development Programme 2.89 3.41 2.83 2.65 2.96 Credit Linked Capital Subsidy Scheme 2.8 3.5 2.74 2.57 2.92 Training and skill development programmes 2.93 3.22 2.28 2.75 2.78 NCEUS & Apex body initiatives 2.33 3.3 2.29 2.27 2.72 Performance and credit rating scheme 2.61 2.7 2.61 2.67 2.63 Credit Guarantee Scheme 2.69 3.07 2.56 2.14 2.6 Integrated Infrastructure Development Scheme 2.37 2.27 2.55 2.13 2.34 National Manufacturing Competitiveness Programme 2.38 1 1.64 2.33 1.96
  7. 7. Corruption and its impact Levels of Corruption Adverse Impact of Corruption
  8. 8. Effectiveness of Government Schemes
  9. 9. Efficacy Index <ul><li>The efficacy index was calculated for the MSME Policies of the Government & the ecosystem based on the following factors: </li></ul><ul><ul><li>Level of awareness of schemes at the grassroots level </li></ul></ul><ul><ul><li>Effectiveness of the schemes offered by the Government </li></ul></ul><ul><ul><li>Ease of usage of the scheme </li></ul></ul><ul><li>Based on these calculations, the efficacy index was calculated as 35% which is very low as compared to the targeted 100%. Hence, the MSME sector in India still requires focused and sincere efforts to realize their true potential. </li></ul>
  10. 10. hank <ul><li>T </li></ul>Y ou