The document discusses the India MSME Communication Programme (IMCP) which aims to provide answers and solutions to issues facing small and medium enterprises (MSMEs) in India. It does this through knowledge building and reporting on the MSME sector. The IMCP conducts an annual reporting series called the India MSME Report which analyzes the current status, future outlook, and strategies for the MSME sector. The reporting draws on data from the ISED Small Enterprise Observatory knowledge platform and field research. The goal is to better inform stakeholders like MSMEs, banks, industry associations, and governments to facilitate collaborative action and policymaking on MSME issues.

2. Background
Against the overall slowdown in GDp growth rates, the po_
tenfial business case with the MSME sector remains mixed.
Despite all these worries, top_notch development practitio_
ners and experts around the world caution that the SMEs
need to be handled carefully at this juncture. They say, when
the economy is going bad to
worse, the hope still lies with the
SMEs: for these enterprises, the
resilience, the potential speed
of adjustment, and tfrerefore, of
recovery is much grcater than
for the large businesses. This
is the stong business case for
governments and banks to work
closely with the MSMEs and to
engage them continuously. Of_
course it is a painstaking effort
as welllBut one need to think
out of the box.
MSMEs cater to the vital needs
of the economy in terms_of therr two specific roles: 1). as a
support base for large industry; and,2) as a stand_ alone pro_
vider of goods and services (the .wa!e
goods, role). As the
economy slows down, the sub sector which is highly depen_
dent on the corporate sector, is seriously impacted adverse
On the other hand, the stand_ alone sub ictor is affect
*

3. by the general macro economic factors, than by a slowdown
in the corporate sector.The negative impact of an economic
slowdown on MSMEs need to be specifically understood.
The above variation in the speed of adjustment of the two
sub sectors, on the one hand, and the differences in such
speed between the corporate sector and MSMEs on the oth-
er, have important implications for corporate planning and
for shaping lending policies by the financial institutions. The
risk perception of financial institutions relating to the MSME
portfolio remain generally high, and more so, during times of
a slowdown. But, when the economy recovers, the positive
response to such recovery is likely to be at a much greater
speed in the MSMEs than in the corporate sector. Therefore,
it is in the interest of financial institutions to closely monitor
developments in the MSMEs on a day- to -day basis, and be
proactive in measures that help to energize them.
Despite the above imperatives, banks in India are not ad-
equately equipped to spotlight on this vital sector. While de-
velopment banking has given way to pure retail banking,
a knowledge gap has virtually taken shape during the past
two decades. This is the right time for banks to do a proper
homework for reducing their non-performing assets(NPAs).
This is also the time to grab the new opporhrnities with the
MSMEs, as GDP growth rate is expected to pick up by mid
2013-t4.
A serious search for tapping the potential of MSMEs should
begin with visibility-enhanclng strategies. Such homework
needs to have two components: a) morale boosting; b) a
clear direction on do's and dont's. This should not happen
in a top-down manner, but through a participative process.
India MSME Communication Programme(IMCP), at the In-
stitute of Small Enterprises and Development, is a regular
programme that facilitates such a home work. ISED Small
Enterprise' Observatory GSED-SEO), the unique platform
and its annual reporting series, India MSME Report Series
(MSMER Series), attempt to bridge the above critical gap.
IMCP, as an integrated communication prograrnme, seeks to
offer an integrated solution to the MSME issues. This flag-
ship programme ofthe Institute seeks to answerthe questions
as to how and why the MSMEs are, the way they are today.
It seeks to put forward some intelligent integrated solutions
that touch upon many of the hitherto unexplored areas of
activiry by MSMEs and their various stake holders. These
answers help the stake holders, like the MSME associations
and business chambers, govemments, bankers, promotional
agencies etc., and thus, offers them a common ground of
joining together for collective action. The role of ISEp is
one of a facilitator in this process of 'communication'.
MSMEs are the lowest form of enterprise in any econo-
my. They are numerous in numbers, but being atomic in
nature, have only limited bargaining power, both in the
market and in the policy space. While 'cluster'-based
strategies may help them through pollective efficiency,
SMEs are still subject to the more serious problem of
macro level invisibility. An overall improvement in vis-
ibility, and hence, positive changes in bargaining power
corresponding to their rcile in the economy, demands
effective communication strategies. Unlike the popular
meaning.of the term, communication, in the domain of
MSMEs, is about getting information out to particular
audiences, listening to their feedback, and responding
appropriately. The idea is to build consensus through
raising public understanding and generating well-in-
formed dialogue among the various stake holders.
a

4. OUt ISED . SEO
IMCP is a prograrnme being implemented by the ISED Small
Enterprise Observatory GSED-SEO), a premier world-class
knowledge platform on industry and enterprise develop-
ment. Part of ISED, it is Membership- driven. Should you be
an entrepreneur, a banker, a corporate executive, an academ-
ic, it eases you from the burden of pondering over complex
MSME related issues. The benefits for members are varied:
the take-aways are in the form of word of mouth, materials
in print, and other services. Apart from regular communica-
tions, the members also enjoy discounts on selected take-
aways. For membership and further details, please contact
the Co-ordinator: e-mail: ised.seo@gmail.com or seo@
isedonline.org
d Examples
The global story of growth in GDP and employment, over
the last one decade, has led to a consensus on the role of
SMEs in the economy. It is now well recognised that, from
the point of view of economic security, SMEs need to be
empowered. Empowerment of SMEs means making them
part of a larger platform of communication, which enables
other stake holders to understand their problems and con-
cerns. Hence the scope of the term, 'communication'covers
the following: 1) the entrepreneurs' interest in SMEs as a
means of livelihood; 2) r}re community's interest in this sec-
tor as a means of local economic developmen! 3) the busi-
ness case identified by various stake holders, such as bank-
ers, suppliers and parent companies; and 4) the role of the
government as a key actor in the macro economy. However,
such interest -driven stake holders need to have a clear view
of the SMEs, their ecosystem, and the opportunities and
threats. This critical gap of invisibility'need to be properly
addressed for meaningful engagement of the MSMEs sec-
tor. While MSMEs, by nature, are structurally invisible, the
primary task before every stakeholder is to help make them
more visible. Some forms of visibility- enhancing strate-
gies have been practiced in the context ofEuropean Union
and North America.In the USA, the role has been actively
pursued by the U,S. Small Business Administration, which
makes regular official reporting on the sector, which forms
the backbone of public policy in that country. The European
Union, as a continent, has a common reporting strategy ap-
plicable to all countries of that region.
SME visibility leads to the overall empowerment of these en-
terprises. The example ofEuropeanUnion stands out. Europe
is just 3.1 times as big as India, but most of the nation states
in the EU are smaller than Kerala. European Union, as a con-
tinent , ensures the critical mass of visibility through its ded-
icated support systems forthe SMEs. These support systems
enable the SMEs from the member countries to vigorously
engage in foreign markets(eg : European SMEs in China).
Another positive impact of the EU strategy is the strength-
ening of SME Associations. The European Association of
Craft,Small and Medium-sized Enterprises(JBAPME) is a
powerful employers'umbrella organisation, with 80 mem-
bers from 34 countries, and representing 12 million enter-
prises. It initiates powerful campaigns from time to time, in
defence of the interests of the SMEs. The UEAPME itself
has solid tools and techniques of scientific advocacy, like
the'EU Craft and SME Batometer', and the 'SME Business
Climate Index'
The ISBD Small Enterprise Observatory over the years, has
created a significant knowledge base of the MSME scene
within India and across the globe.This knowledge capital is
being offered offered by the Institute in a socially meaning-
ful programme, the IMCP.
K uestions
India MSME Communica-
tion Programme(IMCP)
seeks to find answers to the
following questions, from
time to time:
. |'I/hat is the carrent
status and problems of
MSMEs in India?
MSME problems cannot
be separated easily from
the overall problems of
'Research for SMEs' and'Research for SME Associa-
tions' are two dedicated initiatives meant for strength-
ening the innovation capacities of SMEs by providing
the support they need to outsource research critical to
their core business.The Research for SME Associations
Programme of the European Union aims at developing
technical solutions to problems common to a large num-
ber of SMEs in specific industrial sectors(eg; quality
standards, regulatory requirements etc.).The Research'
for SMEs Programme supports small groups of innova-
tive SMEs in solving technological problems and acquir-
ing technological know-how. These two Programmes,
together, ensure a reasonable knowledge base for the
common benefit of SMEs in Europe.

5. the-Indian economy and society. But for the government
, departments and financial institutions, just an abstract
understanding of the problem is not enough. Action _ori_
ented understanding and approaches are vital. IMCp has
such an action oriented approach and methodology.
. llthat is likely to happen in this sector during the next
twelve months, and beyond?
Action-oriented understanding alone will help one to plan
for the next one year and beyond.That is why the report_
ing exercise of IMCP has a periodicity of one year, even
while itpresents long termperspectives and strategies.
. What needs to be the strategt for the way forward?
Strategies need to be specific and concrete. They need to
be based on facts and figures that are upto date. In order
to ensure this , the IMCP employs a hybrid methodology
involving three components:
l) Data drawn from the ISED-SEO, which has the latest
available data sources on the sector;
2) Field feedback, pre-project, on-project and post-project,
including data from purposive suryeys, which supple_
ments the above data;
3) On-project and post-project documentation of all knowl_
edge resources through the IMCp National Report.
. Specification of Stake holder roles
What role can the various stakeholders, viz., the govern_
ment, banks, industry associations and civil society play
in shaping such a strategy on the basis of common goals
and shared values?A clarity on this is needed in order to
ensure ACTION. This need to be done professionally by
an external agency in an independent and unbiased man_
ner. ISED considers this as its responsibility to the society
in which it operates.
O ectives
t Ultimate Objective
More effective, responsive and accountable governance of
the MSME constituency with civil society participation.
t IntermediateObjectives
Creation of a strong knowledge base to engage in participa_
tory govemance relating to the MSME constituency.
Increased collaboration and learning between civil society
organisations and institutions in governance.
o Short-term Outcomes
Dialogue: Strengthened ability of civil society networks/ al_
liances to engage in dialogue on participatory governance.
Replication: Enhanced ability of civil society networksi al_
liances to identifu and replicate good practices on participa_
tory govemance.
Increased interaction between civil society
ces and institutions in govemance.
Learning: Greater understanding of and competence in par_
ticipatory govemance among civil society and other stake_
holders including the wider public.
Wishful thinking, rash generalizations, and sernons from the
pulpit will not help. Beyond broad macro- economic judge_
ments, our understanding of the MSME sector needs to be
evidence- based and methodologically sound. It should en_
sure knowledge creation,andflow of information and knowl_
:ff'1Til:
munication.
Knowledge Build -up
and Reporting
ISED Small Enterprise
Observatory(ISED-SEO), is
a unique Knowledge Bank
on the MSME sector. It is a
repository of varied knowl-
edge resources, including
rare data and info materials
thatare drawn, among other
things, through the regular
Programme of the ISED.
These knowledge resources
are useful to the MSME
stake holders in their resu-
MSMEs in India are largely unaware of many public
policies, even if they beneflt from them. While aware_
have enough funds under their MSME programmes; but
takers are often few in number. Banks are on the look
cts, but it.
ous circl re-
can be, est
means of visible action and impacts. Many countries of
North America andEurope provide good models in this
aspect. !

6. lar work. The Observatory
is an independent mem-
bership platform. The
members include, MSME
entrepreneurs and their As_
sociations, business cham-
bers, financial institutions,
researchers, NGOs etc. .
'India: Micro, Small and
Medium Enterprises Re-
port (MSMER) is a series
which was introduced as
a unique initiative in the
country bythe ISED Small
o Partnership under Event partnership Options.
e Partnership underAdvertisement Options.
e Bulk purchase of MSMER and allied Reports for dis_
tribution/dissemination within one,s organization or
outside.
r LogisticaVtechnical support for events under .India
MSME Darshan' in selected cities/centres of one,s
preference.
' Inputs/data support for preparation of the .India,
MSME Report'.
e Membership in the ISED Small Enterprise Observa_
tory.
c Donations for IMCp Fund
Since the first issu
ob
subsequent volum tll
the subject area,gl Seri
come of age. It is widely quoted and reviewed in premier
academic and media circles, such as Economic and political
Weekly, ess Review, Business Indiq, Business
WorlL Times, Financial Express, the Hindu,
the Bus
specific interests and concems. Thus, the programme, which
originally started as a single level reportinglndeavour has
Communication
ISED is keen that the knowledge_ base, created by the report_
ing initiative of the Observatory should be beneficial to the
stake holders, and to the society in general. This vision ofthe
Institute is translated
now got matured into a three-
tier reporting programme
covering Global, National.
and State level scenarios.
The India MSME Report
Series has generated sig-
nificant interest among the
State Govemments as well.
The Government of Guja-
rat sought the expertise of
the Institute to prepare In-
dia's first State level Report
on MSMEs, the 'Gujarat'
Micro Small and Medium
Enterprise Report 2013.
into action through
the 'India MSME
Darshan', an out-
reach and communi-
cation programme,
wherein the MSME
Report is used as an
important tool. This
crucial phase of the
Project realizes this
objective through
deliberations across
the countr;r, cover-
ng 20 centers, 16
The Report, prepared with the active participation of vari_
ous stake holders in the State, was formally released by the
Chief Minister at the .Vibrant
Gujarat Z0l3'. Various other
State Governments have approached the Institute to under_
take studies on similar lines.
f,

7. Tamil Nadu
Kerala
Kamatak4
Maharashha
Madhya Pradesh
Rajastan
Gujarat
Jammu & Kashmir
Uttaranchal
Chhattisgarh
Bihar
Orissa
Andhra Pradesh
West Bengal
Assam
Tripura
Meghalaya
Jharkhand
Himachal Pradesh
Chennai, Coimbatore, Madurai
Trivandrum, Cochin, Calicut
Bangalore, Mangalore,
Mysore, Kolar.
Pune, Mumbai, Sholapur,
AhmedNagar
Indore, Bhopal
Jaipur, Udaipur, Jodhpur
Ahmedabad, Surat, Vadodra, Rajkot
Srinagar
Dehradun
Raipur
Patna
Bhubaneswar
Hyderabad, Vishakhapatnam
Kolkata
Guwahati
Agarthala
Shillong
Ranchi
Shimla
bookish understanding, all MSME stakeholders need to have
an understanding of the matrix within which they need to
work.
In a matrix, as above, the intelligent decision maker would
constantly try to get his actions/proposals supported with a
strong business case, and would consciously try to build up
a win-win situation. Such an approach is applicable both to
individuals and institutions. Misinformation and partial in-
formation are the enemies of informed decision making. In-
formed decision making, however, can come only through a
continuous process of dialogue and communication. IMCP
does this through the following ways: 1) Creation of a mplti
stakeholder platform; 2) Issues of debate are prioratised on
the basis of informed understanding of their scope and cov-
erage; 3)The debates and areas ofconcern are channelized in
a demand-driven mafller; 4) Issues and concerns are picked
up on the basis ofregional concerns and aspirations , rather
than vagre ,enumeration of ' problem areas". 5) A ground for
conciliatory talks between opposing parties are facilitated
(The Institute itself mediates where needed); 6) Expert ad-
vice is given on bi-parfy relationships, wherever requested.
For the ISED Small Enterprise Observatory Reporting means
one form of output. The MSME Report has varied purposes.
First, it provides an independent and unbiased analysis of
the state of MSMEs in the particular year Secondly, being
addressed to a multi stake holder platform, the Report needs
to maintain a balance.Thirdly, since it is meant to trigger a
debate on the state of the sector and its imperatives, its style
and language has to be comprehensible to all. Therefore, the
reporting exercise takes constant efforts to cross the barri-
ers of language and style. The Report is meant for amateurs
and professionals alike. All the stakeholders, entrepreneurs,
States, and 500,0000 entrepreneurs and other stake-holders.
'Darshan'has two major objectives: 1) issue-based regional
level discussions, organized jointly with the State MSME
Departments and MSME Associations/ Chambers; 2) pio-
ratisation oflocal issues against the background ofState lev-
el and national issues; and 3) evolving
collective strategies.
Communiation as an inevitable con-
necting link in any transaction be-
tween two parties, is approached from
various angles: the banker does it in
personal banking; the government
promotional agency/Department does
it through EDPs or entrepreneur coun-
seling; the NGO does it through micro
finance. The real -world experience is
that, in all these transactions, there are
givers and receivers, and the deals are
settled not to the optimum satisfaction
of both the parties. What is often lack-
ing is a demand-driven deal. Beyond

8. 9u$".o
p*blicy makers, analysts,
thing to pick up, to be used in the
some- semination and Stake holder feed back.
Delivery of the programme
The process of IMCp
prolect; 2) R"pd;* stages: l) Pre
n; and 3) Dis_
. The IMCp provides snapshots of the MSME scenario
al contexts,which gives
economic environment
their subsistence hnd o"r;ltt
turn' also provides for
o The MSMEs and their Associations get updated in_
formation on the businer, *d
""ono_]"
t
"oOr,
uod uglimpse of achievements gained and issues faced bycomparable subsectors.
o As_the IMcp provides commentary on various trade
and non_trade policy and legal issues, u g"o.rut aware_
ness of benefits and limitations affectin! th"i. op"ra_
tions is obtained.
Policy fnsfitutions
Feedback on Initiatives; Important feedback on the ef_fect and efrcacy of legislative _""r*;;;;;;licy initia_tives is one of the major contributions of MS'MER, as therelevant information is gathered dir*a;;;the rargetpeople and their Associations.
Directions for Change: Th
requirements of me rinits in
support
highlighted, lnOicatir[' tne direcrions in which,J:;;::tiation or change is desirable or needed.
Prior Knowledge: Th
tives and..rooir"rio initia-
States
]: lt:]ld"^d,
highlighting the achievements and issues aris_mg out of measure
repetitive trials and ' thereby avoiding
Financial Institutions
MSME opporhrnities need to ie tapp"j,n
"irn
*e markerprocess only; the government prograrnmes bi themselves,
cannot ensure that the major vacuum of untapped busi_ness opportunities and linkage potential that still remainsis trained to the best advantage ofa[.
Risk Management: The landscape of MSME risk under_goes significant changes
risks, such as reduced-dem
financial issues like brakes i
sibility, and involved legislation and regulation. White
be managed to some e{ent the
me all the more important in the
in its pres ent fonn, is
""r
:f;HH;'""f#:T?:lTT:
tinuous scan of customer needs and new markets, whichis vital for ensuring survival and erowth. s".r^_, aar -.-L
MSMEs and Business Associations
New Business Opportunities and Linkages: G
3:l?i"1"3tu:l:
o" devclopment bd;s io roo,u, o",
Research ; Only the
Economic Research
sues, withmuch less foc
is focused on macro level is-
IMCp offers u ,*.
"oo.
on the constituency ofMSMEs.
that are not availabre els ,resources
porrunities ora"rr"toplng, tI1Y-
win basis. on a wrn-
of financial in_ Civil Sociefy
of
it
ic

9. Performance improvement programme for 12 units
were initiated directly.
Reporting services extended to one State govern-
ment; three others are in progress.
Advisory services to 21 units extended.
Banker- entrepreneur disputes at the local level- 6
cases were taken up with higher authorities and ami-
cably settled.
Nine cases of infrastructure bottlenecks were brought
to the attention of State Governments and resolved
Five new project ideas identified and documented;
thirty entrepreneurs brought into the stream.
Nine critical areas of policy intervention were identi-
fied, brought to the notice of the Ministry of MSME.
Eleven cases of Institutional Development identified,
and advisory services extended.
Advisory services in livelihood development to f.ve
NGOs
Industry responses from five subsectors triggered
major subsectoral studies over the years.
The" Desk to the Field"(India MSME Darshan) stage in-
volves the following five broad activities: a)Local partner-
ship initiative; b)Development of programme content based
on local prioriries; c)Resource mobilization; d)Implementa-
tion; and e) Dissemination, deliberation and formulation of
approach to issues and solutions; f) Post project reporting.
The delivery of the Project is structured under its calendar:
The state-of-the Sector Report is brought out in a high pro-
file event in one of the metro cities in June, with the active
involvement of the major stake holder institutions. This is
followed by the formal launch of the India MSME Darshan,
which runs through July to November. The IMCP National
Report covering the major field level feedback and recom-
mendations ,comes out in December. A Policy Brief, brought
out along with the IMCP National Report, is submitted to the
major echelons of policy, the Reserve Bank of India, Plan-
ning Commission, Ministry of Finance, Ministry of MSME,
and the Prime Minister's Economic Advisory Council etc.
Similarly, Policy Briefs based on the Global MSME Report
and the Report on India: the State of MSMEs, are circulated
to the relevant stake holders in the same manner.
The Partnership Model
India MSME Communication Programme is the world's
first communication prograrnme of its kind, being imple-
mented on an'Inclusive Partnership'mode. The term 'inclu-
sive'implies that the Parbrers'role in the programme is rated
not simply in terms of their resource contribution, but also
in terms of their commitment to the cause. The Partners are
the pillars of the programme. They help the programme in
mobilizing the resources, social capital and logistical support
base, and make it to happen.
The revenue model implicit in the programme involves the
following: 1). Partners' contribution; 2). sale of reports;
and 3). the donor conkibution. The commercials of the pro-
grarnme can, therefore, be in the form of physical or finan-
cial resources or both.
Given the interest and willingness of a potential Partner,
there are many options to choose from. Partnership can be
in the form ofdonor contribution, technical assistance, facili-
tating events, or providing support services.
Overall Benefits to Partners
Besides specific benefits to particular categories ofPartners,
there are significant overall benefits to all Partners alike.
The discussions in the Events are of a high quality with sig-
nificant focus, so that all Partners and stake holders benefit.
The events organised in the context ofthe formal release of
MSMER and under the India MSME Darshan, are high pro-
file initiatives with active involvement and participation of
leading institutions: Ministry of MSME, Planning Commis-
sion, Reserve Bank of India, Public sector and Private sector
banks, State Government departments, IIN, and multilateral
agencies. The Partners, depending upon the terms of partner-
ship concerned, get an excellent opportunity to send a se-
lected number of delegates, to participate.
The Programme has been encouraged by the Reserve Bank
of India, Ministries of the Union and State Governments and
Intemational organizations. It has also been supported by
various financial institutions and public promotional agen-
cies. who are its Partners.
The project IMCP was started as a reporting exercise on the
small scale industries sector, inl997. While the data base of
the Sector those days was rather skeletal, there was a percep-
tion among some of the stakeholders, especially the devel-
opment banks and the government, regarding the need for
a solid data base. The original initiative was to collate the
available data into a usable report form. This has undergone
significant changes over time. Reporting itselfbecarhe need-
based.
8 __-______-_______
*

10. Brings out India's only comprehensive source book
onMSMEs
Continuity over the last seventeen years
Regular.feed back from all States, UTs and MSME
dominant centres ofthe counhy
Coverage of500,000 entrepreneurs and other stake
holders
Regular international comparison of 15 countries
and all continents
Active Parhrership with 200
(banks, promotional agencies
partner institutions
and govemments)
across the country.
High-profile fonnal launch
speakers
events and reputed
Excellent media coverage and visibility
Eight thousand print copies distributed across the
globe
Due recognition for all partner institutions
Indepth analysis of issues relating to credit, market-
ing and technology, and new business opportuni_
ties
Waming and projections on problem areas
Detailed analysis and documentation of clusters
and promising product-lines.
Ahigh order of media sensitization.
7)
8)
e)
l0)
ll)
r2)
l3)
r4)
150
16)
r7)
l8)
for problem sectors;
Projection on issues ofpolicy relevance;
Esatablishment of a mediatory role at the field level:
Generation of State-level and industry_ level pro_
files;
Synchronisation of the National with the global
MSME scenario;
Identification of MSME financial sourcing issues and
providing guidelines and suggestions(which resulted
in the ultimate establishment of the SME Exchange);
Triggering women empowerment issues through,
MSMEs(which led to the establishment of a Women,s
Bank);
Gender-specific issues pertaining to women _domi_
nant indushies, such as leather tanning, footwear,
ready- made garments, electronic equipments, erc;
Child labour issues in industries like, sports goods,
matches, leatheq and other products;
Environmental issues and clean production;
Green production and related business opporhrnities;
MSME outward-orientation and trade issues;
Re-assirnilation and absorption of returning migrants
into the MSME sector.
The am
The expertise embedded in the
IMCPhas got evolved overthe last
sxteen years. It does not merelv
reflect the expertise of ISED as an
institution, but also intelligence
accumulated over the years. The
rich inputs from a large number of
l) Visibility of key MSME issues;
2) Articulatio s of MSMEs from generic
to specific to regions and clusiers;
3) Identification of levels of capability of the entrepre_
neurs and their enhancement;
4) Identification of potential business opportunities for
banks;
5) Identificition ofnew areas ofintervention by the rel_
evant government Departments;
6) Identification ofproblems and suggestion of solutions
MSME& f IMCP,
rgsearch. sthavea
direction. the live
pressing problems of the people, there has to be a close
link between people in action and.the researcher who
tries to understand their actions and concerns. The an_

11. stake holders across the country and outside, have helped a
synthesis of ideas, and shaping of the IMCP.
The mandate being shaped through a process of continuous
interactions with a stakeholder network, the Programme
has been operationalised through the meticulous work of the
ISED -SEO..
Advisory and Co ordination am
While the Programme is coordinated by the ISED-SEO, the
work ofthe Observatory is overseen by an International Spe-
cial Advisory Team, headed by the eminent economist and
former Union Minister of State for Science and Technology,
Dr. Yoginder K. Alagh. A large number of experts with ex-
tensive and meaningful involvement in the MSME related
fields forms the core advisory panel. Details of the panel
members is given on page 11. The programme is implement-
ed by a dedicated team of subject experts, vide details on
page 13.
Sustainabi
Sustainability is the hall
mark of IMCP. The Proj-
ect emerged and meta-
morphosed into its Present
stage of a fully oPerational
Programme. Each Particu-
lar stage of its develoP-
ment was of significant
appeal to particular stake
holders, and today, it is an
integrated programme re-
sulting in a synergY ofvari-
ous stakes for the common
benefit of the constituencY.
From this angle, IMCP stands out as a unique model that has
significant scope for replication in similar contexts'
The sustainability of the Project arises from the following
facts:
1) Being truly participative, the Programme is demand-
driven;
2) The implicit model of inclusive partnership' ensures
the economic sustainability of the Programme;
3) The Programme has a significant potential and demand
for being scaled uP;
4) It has a great demand for horizontal and vertical inte-
gration as well as for disintegration into States and sub-
sectors.
Scaling up and RePlication
IMCP has a need and potential for scaling up and of getting
broad based and replicated. The Programme is getting scaled
up in terms of its coverage. Broad basing has happened in
terms of entering another stage of reporting, ie, State level
reporting, to be followed by district level reporting.
a
a
o
The Economic Crisis and MSMEs: Annual Analysis
Labour shortage in the MSMEs.
Skill Mapping.
MSME HealthAnalysis.
Shared Growth Commission for MSMEs.
'Dependent Enterpreneurship' and Entrepreneurship
Crisis.
Innovative solutions for Delayed Payments problem.
Competition policy for MSMEs.
'Inclusive Entrepreneurship Development' Model.
'Finance Park': a new MSME Finance Model.
Responsible Business Model for MSMEs
Alternatives in Cluster Strategy.
MSME as a regional development model.
Women empowerment in the MSME Sector.
o
o
a
a
a
o
a

12. International Advisory Team
' Mr. Vijay G Kalantri, President, All IndiaAssociation of
Industries, Mumbai
' Dr.S.P.Gupta, former Member, Planning Commission,
NewDelhi.
. Mr.Amitabha Guha, Chairman, South Indian Bank
' Dr. Dinesh Awasthi, Director, Entrepreneurship Devel-
opment Institute of India (EDID, Ahmedabad
' Prof. Blili Sam, Director, Enterprise Institute , Univer-
sity of Neuchdtel ,Switzerland
' Mr. H. P. Kanoria, Chairman, KanoriaGroup of Compa-
nies. Kolkota.
' Mr. Lakshman Gugulothu, CEO,BSE SME Exchange,
Mumbai
' Dr. T.S. Papola, Member, Prime Minister's Advisory
Council on MSMEs.
' Dr. Malcom Harper, Former Director, Canfield Institute
of Management, Cranfield, U.K.
' Mr.RamVenuprasad,Adviser,EnterpriseDevelopment,
Commonwealth S ecretariat, London
' Mr. Gopal Joshi, former Coordinator- Informal Enter-
prises, EMP/ENTERPRISES, ILO, Geneva.
' Prof. Gordon Murray, Professor of Management (En-
trepreneurship), University of Exeter Business School,
UK.
' Padmabhushan Mark Tully, eminent Journalist
' Dr. Paul Shrivastava, Professor and Director,Centre for
Sustainable Enterprise, John Molson School of Busi-
ness, Canada
' IVk Rohit. S. Mehta, President, South Gujarat Chamber
of Commerce and Industry, Surat.
' Dr. Soren Jeppensen, Associate Professor, Copenhagen
Business School.
' Ms.Uma Reddy, CEO, HiTech Magnetics Ltd, Banga-
lore
' Ms. Madhura M. Chatrapathy, Director, Asian Center
for Entrepreneurial Initiatives , Bangalore
' Dr. Rasheed Alleem, Director General, Hamariya Free
Zone Authority and Seaports and Customs Authority,
Shadah, UAE
' Dr. N.K.Thingalaya, former Chairman, Syndieate Bank
' Ms. Suditta Bhadra, National Project Manager, SCORE,
India, ILO, New Delhi.
-_-__--________--- 1l
nal Advisory Team
' Ms. K. Saraswathi, Secretary General, Madras Chamber
of Commerce and Industry, Chennai
' Mr. K.P. RamachandranNair, President, The Kerala State
Small Industries Association
' Mr. R.S. Joshi, Chairman, Federation of Industry & Com-
merce of NorthEastem Region, Guwahati
' Dr. Sripama.B. Baruah, Professor, Indian Institute of En-
trepreneurship, Guwahati.
' Mr. Anurag Aggarwal, President, Mohali Industries As-
sociation, Mohali.
' Mr. B.A. Nazeer, President, Kanara Small Industries As-
sociation, Mangalore
' Mr. J. R. Bangera, Past President, Federation of Karna-
taka Chambers of Commerce and Industry, Bangalore.
' Sri Ramesh Mohapatra, President, Utkal Chamber of
Commerce & Industry, Bhubaneswar
' MI.A.K. Saboo, President, Malabar Chamber of Com-
merce, Calicut.
' Dr. K.L. Jain, Honorary Secretary General, Rajasthan
Chamber of Commerce and Industry
' Fr. P.T. Joseph, Director, Xavier Institute of Management,
Bhubaneswar
' Mr. K. Gnanasambandan , Vice President. Tamil Nadu
Small and Tiny Industries Association, Chennai
' Mr. Puran Dawar, President, Agra Footwear Manufactur-
ers and Exporters Chamber, Agra.
' Mr. Atul Kapasi, President, Gujarat State Small Indus-
tries Federation, Ahmedabad.
' Mr. B .L. Baheti, Secretary General, IndianFederation of
Tiny Enterprises, Kolkata
' Mr. AKarthikeyan, Project DirecIor,ZDH /SEeUApart-
nership Program, Noida
' Mr. Dilip Sharma, Regional Director, PHD Chamber of
Commerce, Chandigarh
' Mr. V S Raju, Past President, Federation of Andhra
Pradesh Chambers of Commerce & Industry, Hydera-
bad.
' Sri. S. Balasubramanyam , Past President, peenya Indus-
tries Association, Bangalore
' Dr. G. C. Gopala Pillai, Chairman, KELTRON Limited
Thiruvananthapuram
' Mr. K.P.S. Keshri, President, Bihar Industries Associa-
tl0n
Mrs. Anjana Chellani. National
(Programme), ILO, New Delhi.
N
Professional Offiber

13. Partner Organisations
All IndiaAssociation of Industries, Mumbai
Andhra Bank
Association of Leather Industries of Kanpur
Automobile Research Association, Pune
Axis Bank
Bank of Baroda
Bank of India
Bank of Maharashtra, Pune
Centre for Entrepreneurship Development, Tamil Nadu
Chandigarh Business School
Coir Board
Canara Bank
Credit Guarantee Trust Fund forMicro and Small Enter-
pnses
Commonwealth Secretariat, Commonwealth Youth Cen-
tre, Chandigarh
Confederation of Southern States Small Industries As-
sociation
Council for Leather Exports
DenaBank
Export- Import Bank of India
Export Credit Guarantee Corporation of India
Entrepreneurship Development Institute of India
Federation of Andhra Pradesh Chambers of Commerce
& lndustry (FAPCCD
Federation of Indian Chambers of Commerce and Lrdus-
try (FICCI)
Federation of Kamataka Chambers of Commerce & In-
dustry (FKCCI)
Federation of Madhya Pradesh Chambers of Commerce
and Industry(FMPCCD
Federation of Indian Export Organisations
Footwear Park Association, Bahadurgarh
Gujarat Chamber of Commerce and Industry
Gujarat Industrial Development Corporation
Hosiery Manufacturers' Association, Ludhiana
IDBI Bank
Indian Bank
Indian Institute of Entrepreneurship, Guwahati
Indian Institute of Management, Kolkata
Indian Professional Service Organization (IPSO), Kol-
kata
Industries & Commerce Department, Government
Haryana
Industries & Commerce Department, Government
Maharashtra
Industries & Commerce Department,Government
Punjab
Induskies & Commerce Department,Government of
TamilNadu
Industries & Commerce Department, Government of
Andhra Pradesh
Industries & Commerce Department, Government of
Kerala
Industries & Commerce Department, Government of
Karnataka
Industries & Commerce Department, Government of
Gujarat
Industries & Comqrerce Department, Government of
Uttar Pradesh
Indriskies & Commerce Department, Government of
Madhya Pradesh
Industries & Commerce Department, Government of
West Bengal
Institute for Inspiration and Self Development (IISD),
Kolkata
Institute of Entrepreneurship Development, Chennai
Kerala Industrial Infraskucture Development Corpora-
tion Ltd.
Kerala State Industrial Development Corporation
Kerala State Small Industries Association
Kanoria Group of Companies, Kolkata
Kerala State Financial Enterprises Ltd.
KarurVysya Bank
Leather Tanners Association, Kanpur
Leather Manufacturers Association, Ambur
Leather Manufcaturers Association, Chennai t
of
of
of

14. Ma&ya Pradesh LaghuUdyogSangh
Madhya Pradesh Industrial Development Corporation
Madurai District Tiny and Small Scale Industries Asso-
ciation (MADITSSIA)
Maharashtra Centre for Entrepreneurship Development
Maratha Chamber of Commerce, Industry and Agricul-
ture
Marwar Chamber of Commerce and Industry
Marwar Steel Re-rollers Association
MITCON, Pune
Mohali Small scale Industries Association
MSME Development Institute, Ahmedabad
MSME Developpent Institute,Bhopal
MSME Development Institute, Chennai
MSMEDevelopment Institute,Bangalore
MSME Development Institute, Indore
MSME Development Institute, Kanpur
MSME Development Institute,Ludhiana
MSME Development Institute,Mangalore
MSME Development Institute,Trissur
National Bank forAgriculture and Rural Development
National Institute of Bank Manasement
North Eastern Council
National Institute of Design
PHD Chamber of Commerce
Pune Chamber of Commerce and Industry
Peenya Industries Association, Bangalore
Pimpri- Chinchwad Industries Association
Pimpri- Chinchwad Chamber of Industries, Commerce,
Services and Agriculture.
PSG Institute of Management
Punjab & Sind Bank
Punjab National Bank (PNB)
Punjab University of Agriculture, Ludhiana
Punj ab State Induskial Development Corporation
Science & Technology Entrepreneurship Park, Chandi-
garh
Siribissi Small Industries Association
Small Industries Development Bank of India
South Indian Bank Ltd.
State Bank of Hyderabad
State Bank of India
State Bank of Travancore
The Federal Bank
Tamil Nadu Small and Tiny Indushies Association
(TANSTTA)
Tamil Nadu Small Industries Development Corporation
Ltd (TANSIDCO)
The Associated Chamber of Commerce and Industry of
India (ASSOCHAM)
The Malabar Chamber of Commerce, Calicut
U P State Industrial Development Corporation
United Cycle Manufacturers' Association, Ludhiana
United India Insurance Company Ltd.
ZDH I SEQUAPartnership Program
The Implementation Team
As a national programme, the task of IMCP has been made
possible by the meticulous work of a dedicated team, at the
headquarters of ISED and in the field. The editorial team
consist of:
Dr. P.M. Mathew: Development Economist and Editor.
Dr. K.N. Kabra, Economist and Public Policy Specialist.
Dr. J.M.I. Sait : Investment strategist and Management Ex-
pert.
Dr. Bimal Arora : Economist and CSR specialist, based at
New Delhi.
Mr. Zulfikar Mark: SME Expert, based at Washington.
Dr. Manoranjan Sharma: Economist, based at Bangalore.
Dr. Antonio Caubi Ribeiro Tupinamb6: Psychologist, based
at Sao Paulo, Brazll.
Dr. Yerram Raju: Financial Expert, based at Hyderabad.
Dr. Koshy : Practicing Economist, based at New Delhi.
Mr. Amit Mitra : Gender Specialist, based at New Delhi.
Dr. Tulus Tambunan : Economist and SME expert, based at
Jakarta.
Dr. M.K. Sukumaran Nair : Economist based at Botswana.
SouthernAfrica.
Dr. A. Selvaraj: Human Resource Specialist, based at Ma-
durai. z

15. aaa
dus
"The potential of the MSME constituency is enormous. We need the help ofprogrammes like IMCpfor a meaningful under-
standinp of such potential......
-Mr.
Lakshman Gugulothu, CEO, BSE SME Exchange.
"The holistic view, with which ISED approaches MSME issues is really commendable. IMCP has great relevance at the
national level and especially to smqller states like Kerala".
-Dr.
G.C. Gopala Pillai, former Chairman, EACT Ltd.
"At FKCCI' we are privileged to partner with ISED in their innovative work of communicating the MSME concerns "
-Mr.
J.R Bairgera, President, Federation of Karnataka Chambers of Commerce and Industry, Bangalore.
"Understanding the MSME sector in its entirety is a complex task Therefore, ISED and its work has great relevance to-
doy"
-
Mr. Rajanikant r( Marfatia, Member, National Executive committee. Frccr.
rnme
"The Ministry's Programme need to be supported by initiatives in communication like this......
-
Sri. K.H. Muniappa, Minister of State (Independent Charge) for MSME, Govt. of India.
,,IwishInstituteofSmallEnterprisesandDevelopmentandtheIMCEeverysuccess.''
-
Mr. Virbhadra Singh, Former Minister of State (Independent Charge) for MSME, Govt. of India.
" The output of this highly professional exercise has come at an opportune time, the time offinalisation of the Twelfth Five
Year Plan .......- The Ministryfinds India MSME Report and India MSME Darshan extremely useful to the Government and
the public promotional agencies.......... I hope the same withfinancial institutions also".
-
Mr. R.trC Mathur, Secretary, Ministry of MSME, Government of India
"It is such innovative experiments like IMCP that really matter in identifiing the problems of MSME development in West
Bengal"
-Mr.
Manas Ranjan Bhunia, Minister for MSME, Govt of West Bengal.
"The Government of Punjabfinds this initiative of ISED, really laudable. We extend ourfutl cooperation to Indiq MSME
Communication Programme... "
-
Mr. S.S. Channy, Principal Secretary (fndustries & Commerce), Government of punjab.
"ISED has been renderingyeoman service to the cause of MSMEs in the country. Congratulations to India MSME Report
Series and the LMCP......." , ,
- Shri. Murugesh R'udrappa Nirani, Minister for Large and Medium Scale Industries, Government of Karnataka.
'ri ---.- - --

16. Financll Ins ns
"Providing solid data base for the MSME sector is a major challenge today......... The Institute's initiative in this regard is,
of course, commendqble
- Dr. K.C. Chakrabarty, Deputy Governor, Reserve Bank of India
"This great work of ISED is laudable ... . .. . .At the Federal Bqnk, we are proud to partner with lMCp ..... "
-Mr.Shyam
Srinivasan, CEO, Federal Bank.
....... a unique model of communicating the concerns of Micro, Small and Medium Enterprises"
-Dr. N. K. Thingalaya, Former Chairman, Sydicate Bank.
"Thefinancial institutions badly need the support ofprogrammes like this, in order to shape our lending policies... ..... "
-
Mr. M.G. Sanghvi, Chairman, Sydicate Bank & Former Executive Director, Bank of Maharashtra.
"Globalisation is a reality.... but still we live in communities and neighborhoods.... This Programme spealcs of thai...."
-
Padmabhushan Mark Tlrlly
With all the emphasis on microfinance and microenterprise (which, I understand, to meqnpely trade, one-person survival
enterp-rises, yital,fol millions ofpoor people's livelihoods), the 'real' small business with potential to creaiiobs for people
outside thefomily, has tended to be neglected.... Hence the mission of this Programme is something great....
-
Dr Malcolm Harper, Former Director, Enterprise Development Centre, Cranfield University)
"Awell researched document it is Bqtond that, MSMER does awondeful job of idenffiing the opportunities
at the bottom of the pyramid the qccellent international analysis offers lessons to other deietopiii countries as
we||.........."
-
Dr. Jose Maurel, Director, Commonwealth Secretariat, London
'IMCP is really an innovqtive programme, and lLofinds great relevancefor it today........"
-
Mr. Gopal Joshi, co-ordinator, rnformal Enterprises, EMp/Enterprises, rl,o, Geneva
edia
The uniqueness of the India MSME Report Series is that, it is being brought out by a world-class lmowledge platform, the
Small Enterprise Observatory ......
-
Global Business Review
The work of ISED Small Enterprise Observatory is laudable
-
The Economic Times
This exclusive lcnowledge platformfor sMEs has several innovative things to offer......
-
Global MSME, Kuala Lumpur
Beyond the regtlar reporting by the India MSME Report, the ISED Small Enterprise Observatory is expected to contribute
much more valuable inputs for planning and policy making in the country-..
-
The Business Line I
I

17. I CP Calendar
Event Announcement Launch Event Partnership
time-line
Global MSME RePort
India MSME RePort
India:Report on MSMEs in the States
India MSME Darshan
IMCPNational RePort
January
January
January
March
July
December
June
June
July- November
December
2 months prior to the launch
1 month prior to the launch
I month prior to the launch
2 months prior to the launch
1 month prior to the launch
Note: Partnership terms and condition are separately available'

18. St alL. -....
'A wonderful contribution... as it comes from
ISED.The lucid analysis of the Report provides significant
food forthoughttothe planners.........."
- Dr,S.P. Gupto, Former Member, Plan ni n g Com mission
.........a unique model of communicating
the concerns of Micro, Small and Medium Enterprises"
- Dr. N. K.Thingolaya,F ormer Chairman, Sydicate Ban k.
"lndia MSME Darshan is truly relevant to the context of
overall development of the North- East.l congratulate lSED
for this innovative experiment......"
-Mr.
P.P. Srivastovo, Member, North-Eastern Council.
Governmentof India.
"The financial institutions badly need the support of
programmes like this, in order to shape our lending
oolicies........"
-Mr.
M.G. Songhvi, Chairman, Sydicate Bank & Former
Executive Director, Bank of Maharashtra.
"The great work of ISED is laudable........At the Federal
Ban(we are proud to partnerwith 1MCP....."
-Mr.Shyom
Srinivoson,CEO, Federal Bank.
'A well researched document it is...... does a wonderful
job of identifying the opportunities at the bottom of the
pyramid.....The excellent international analysis offers
lessons to other developing countries as well. . . . . .."
(Dr. Jose Mourel, Director, Commonwealth Secretariat,
London)
'At FKCCI, we are privileged to partner with ISED in their
innovative workof communicating the MSME concerns"
-Mr.
J.R. Bangera, President, Federation of Karnataka
Chambers of Commerce and Industry, Bangalore.
"l find the Report quite interesting and comprehensive.
Above all,the MSEMRSeries has continuity..............and
that makes it a ready reckoner."
- Dr. T.S. Papola, Member, Prime Minister's Advisory
Council on MSMEs, New Delhi
"Providing solid data base for the MSME sector is a major
challenge today......... The lnstitute's initiative in this regard
is,of course,commendable.........."
- Dr. K.C. Chakroborty, Deputy Governot,Reserve Bank of
India
"........... the initiative by ISED is truly relevant. . . .. .; it helps
the Ministryvery much"
-Mr.lJday
Kumar Vormo, former Secretary, Ministry of
MSME,Government of India.
"Understanding the MSME sector
complex task. Therefore, ISED and
relevancetoday"
- Mr. Rojanikont K, Marfatia,
Executive Committee, FlCCl.
in its entirety is a
its work has great
Member, National
"The Government of Punjab finds this initiative of ISED,
really laudable. We extend our full cooperation to lndia
MSME Communication Programme. . ."
-
Mr. S.S. Chonny, Principal Secretary (lndustries &
Commerce),Government of Punjab.
"ISED has been rendering yeoman service to the cause of
MSMEs in the country. Congratulations to India MSME
Report Series and the 1MCP......."
- Shri. Murugesh Rudrappa Nirani, Minister for Large
and Medium Scale Industries,Government of Karnataka.
India's only state-of-the-art reporting on MSME sector. . . . . . .. . . . ' '.
TheHindu
The Report is scholarly as well as action-oriented, and will help make the
development of the MSME sector, not only more inclusive, but also more
sustainable and meaningful.....
Gl ob a I B u si ness Review.
"The contribution by I5DED stands out.,......This Report gives significant
lessonsfordevelopment policyand practice in developing countries"
(Global MSME,Malaysia)