the role of micro, small and medium scale enterprises in india 11 december 2008 consulate general of...
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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
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
Readymade Garments
Chemicals and Pharmaceuticals
Engineering Goods
Processed Foods
Leather Products
Marine Products
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MAJOR EXPORT PRODUCTSMAJOR EXPORT PRODUCTS
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
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
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
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: commerce1@indianconsulate.org.hk
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
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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