MSME: Opportunities and Challenges in the light of

‘Make in India’Dr. Shibulal A.L* & Jidhun Mathew**

*Associate Professor, Saintgits Institute of Management, Kottayam**Ist year MBA student, Saintgits Institute of Management, Kottayam

31/10/2015

Introduction

Objectives

Research Issues

Conclusion

References

CONTENTS

Engine of economic growth and development

Major role in GDP growth

More employment at low capital cost

Industrialization of rural and backward areas

Equitable distribution of national income and wealth

Complement large industries

INTRODUCTION

Program launched by PM Narendra Modi on 25 September 2014

Major objective is job creation and skill enhancement in twenty-five sectors of the economy

The initiative hopes to increase GDP growth and tax revenue.

Attracting more foreign investment to India

To set up the production units of multinational companies in India

Make in India

To find the challenges of MSME sector and also the possible impacts of ‘Make in India’ program on the sector

To study the current status of MSME sector in India

OBJECTIVES

Current status of MSME sector in India

Impact of ‘Make in India’ program on MSME

MSME sector in Kerala

Contribution of MSME to overall economy

Opportunities for MSME sector

Challenges for MSME sector

RESEARCH ISSUES

About 26.1 million enterprises in this sector

Share of 45 percent in the manufactured output and 8% in the GDP

Contributes close to 40 percent of all exports

Employ nearly 59.7 million people

There are more than 2000 specialized MSME branches

Current status of MSME sector in India

Growth of MSME sector

Cradle for the “Make in India” vision

The larger ones can become global players attracting partners with technology and funds

Create employment on a massive scale

Vision of increasing share to GDP to 25 per cent by 2022

The ministry expects four of its ongoing initiatives to play key roles in the campaign’s success - The Public Procurement Policy, MSE-CDP, PMEGP and skill development program

Impact of ‘Make in India’ program on MSME

Not harmonious growth

Government policies

Migratory behaviour

Existing entrepreneurs are less dynamic

Service sector is relatively low -value adding

Lack of skill development programs

MSME sector in Kerala

Over the years investment in fixed assets by MSMEs are remarkable

Productions of MSME sectors are going to increases over the year

In 2001-2002 production was Rs.2,82,270 Crore where in 2010-11 were Rs.10,95,758 Crore, increases in ten year are 288.19%.

Average employment generated in last ten years is 466.734 lakh.

Contribution towards employment generation is remarkable comparing to any other sectors employment generation capacity

Contributes 8% of country’s GDP

Contribution of MSME to overall economy

MSME performance

MSME total units and employment

Less capital intensive

Most important employment generating sector. It provides 50% of private sector employment

Effective tool for promotion of balanced regional development

It is extensively promoted and supported by the Government

Finance and subsidies are provided by the government

Opportunities for MSME sector

Produced goods are purchased by the Government

40% exports in India are through MSME channel

Procurement of machinery and raw material

Globalization has offered new opportunities for the MSMEs

Played a vital role in the economic growth of the countries

Credit to MSMEs

Access to Markets

Lack of Technological Knowledge

Lack of proper Infrastructure

Inadequacy of Managerial Personnel

Inadequate Market Information

Challenges for MSME sector

Limited capital

Low production capacity

Ineffective marketing strategy

Constraints on modernization of expansion

Problems of storage, designing, packing and product display

Major segment of the Indian economy

Plays an important role in the economic development of the Nation

Major constituent sector in employment generation, production system, enhancing exports and GDP

Need proper strategy to increase the GDP as well as employment share

‘Make in India’ campaign will definitely bring more opportunities for the MSME sector

CONCLUSION

A K Swain, S Pratihar, (2010), “Innovations and challenges in MSME sector”, DREAMS Business Review- Vol.-1 No.-1

G Sajeevan, (2012), “Present status of MSME statistics”, The Journal of Industrial Statistics 1 (2), 269 – 282

Mehta M.C, (2013), “Challenges and Opportunities in Micro, Small and Medium Enterprises in India”, International Conference on Management, Humanity and Economics, Kuala Lumpur.

D. Srinivasa Kumar, K.V.S Prasad, S. Prasad Rao (2013), “Development in India: An Emperical Study”, IJMBS Vol. 3, Issue 2, April - June 2013

Bhoomika Garg, (2014), “Role Of MSMEs In Economic Development”, Researchjournali’s Journal of Entrepreneurship Vol. 2 | No. 2 February | 2014

S.K Dey, (2014), “MSMEs in India: It’s growth and prospects”, Abhinav National Monthly Refereed Journal of Research in Commerce & Management, Volume 3, Issue 8

Annual Report on MSME, Government of India, 2012-13.

REFERENCES

THANK YOU.