Factsheet of MSME; sector contributes around 9 pc of GDP

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PIB Factsheets | 25 Mar, 2014
Micro Enterprises:

Investment in Plant and Machinery upto Rs 25 Lakhs (Manufacturing sector)
Investment in Plant and Machinery upto Rs 10 Lakhs (Service Sector)

Small Enterprises:

Investment in Plant and Machinery Rs 25 lakhs to Rs 5 crore (Manufacturing sector)
Investment in Plant and Machinery Rs 10 lakhs to Rs 2 crore (Service sector)

Medium Enterprises:

Investment in Plant and Machinery Rs 5 crore to Rs 10 crore (Manufacturing sector)
Investment in Plant and Machinery Rs 2 crore to Rs 5 crore (Service sector)

The Micro, Small and Medium Enterprise (MSME) sector contributes around 9% of GDP. It accounts for around 30% of the total exports and around 45% of the manufacturing output.

As per the Fourth All India Census of the Micro, Small and Medium Enterprises,

Total number of Enterprises of the MSME: 361.76 Lakh
Total Employment in MSME: 805.24 Lakh
Total output of the MSME: 1077212.86 crore*
Total investment in the Plant and Machinery: 199664.21 crore*

(*Excludes activities under wholesale/retail trade, legal, educational & social services, hotel & restaurants, transports and storage & warehousing(except cold storage)

Number of MSME

As per the Fourth All India Census of the Micro, Small and Medium Enterprises, 2006-07

Total Number of MSMEs: 361.76 Lakh
Number of the Registered Enterprises: 15.64 Lakh
Number of the Unregistered Enterprises: 346.12 Lakh

As per the Fourth All India Census of the Registered Micro, Small and Medium Enterprises, 2006-07

Number of Micro Enterprises: 14.85 Lakh (94.94%)
Number of Small Enterprises: 0.77 Lakh (4.89%)
Number of Medium Enterprises: 0.03 Lakh (0.17%)

Employment in MSME

As per the Fourth All India Census of the Registered Micro, Small and Medium Enterprises,2006-07

Total Employment of MSMEs: 805.24 Lakh
Employment in Registered Enterprises: 93.09 Lakh
Employment in Unregistered Enterprises: 712.15 Lakh

As per the Fourth All India Census of the Registered Micro, Small and Medium Enterprises,2006-07

Employment in Micro Enterprises: 65.34 Lakh (70.19%)
Employment in Small Enterprises: 23.43 Lakh (25.17%)
Employment in Medium Enterprises: 4.32 Lakh (4.64%)

Details of Employment in the Micro, Small and Medium Sector of the Unregistered Sector are not available.

Important Schemes Implemented By M/O MSME

CREDIT GUARANTEE SCHEME

Launched on 30 August 2000
Operated by the Credit Guarantee Fund Trust for MSEs (CGTMSE)
Provides guarantees to Member Lending Institutions for loan sanctioned without collateral
Maximum up to 85% of sanctioned loan guaranteed
Collateral free loan up to Rs.100 lakhs per borrowing unit covered under the Scheme.
Corpus size: Rs. 2295.30 crore
A composite all-in Annual Guarantee Fee of 1% per annum of the credit facility sanctioned (0.75% for credit facility up to Rs.5 lakh and 0.85% for above Rs.5 lakh and up to Rs.100 lakh for Women, Micro Enterprises and Units in NER including Sikkim)
During 2013-14, Rs.74.99 cr. have been released under this scheme. Cumulatively, Rs.13.79 lakh proposals have been approved for guarantee cover for a sanctioned loan amount of Rs.74.99 crore.

Credit Linked Capital Subsidy Scheme (CLCSS)

Launched in October 2000 to facilitate technology upgradation of MSEs
SIDBI and NABARD act as the Nodal Agencies and operate through Primary Lending Institutions.
Additional Nodal Banks/Agencies - SBI, Canara Bank, BOB, PNB, BOI, Andhra bank, SBBJ & TIICL operate directly.
Provide 15% capital subsidy on eligible institutional loan up to Rs.100 lakh.
Coverage : 51 Products/Sub-sectors.
Since inception of the scheme 26452 units benefited under CLCSS and Rs.1490 cr. subsidy disbursed.
BE (2013-14) -- Rs.387.75 crore
Expenditure as on date -- Rs.387.22

Performance and Credit Rating Scheme

The rating under the scheme serves as a trusted Third Party Opinion on the capability and credit worthiness of Micro and Small Enterprises.
Under this scheme, rating fee payable by Micro and Small Enterprises is subsidised for the first year upto 75% of the fee
Since inception of the scheme, more than 82,000 units has been rated under the scheme.
BE under the scheme for 2013-14 : Rs.74.99 crore.
Expenditure as on date -- Rs.74.99 crore.

MSE Cluster Development Programme

Diagnostic Study Reports (DSRs): To map the business processes in the cluster and propose remedial measures, with a validated action plan.
GoI grant of maximum Rs. 2.50 lakh will be provided for preparation of DSR for one cluster. For the field organizations of the Ministry of MSME, this financial support will be Rs.1.00 lakh.
Soft Interventions (SIs): Technical assistance, capacity building, exposure building, exposure visits, market development, trust building, etc. for the cluster units.
Maximum limit for project cost would be Rs.25.00 lakh per cluster.
GoI grant for the soft interventions will be 75% of the sanctioned amount of the project cost. For NE & Hill States, Clusters with more than 50% (a) micro/village (b) women owned (c) SC/ST units, the GoI grant will be 90%.
Hard Intervention/ Common Facility Centres (CFCs): Creation of tangible "assets" like Testing facility, Design Centre, Effluent Treatment Plant, Training Centre, R&D Centre, Raw material Bank/Sales Depot, product Display Centre, Information Centre, any other need based facility.
The GoI grant will be restricted to 70% of the cost of project of maximum Rs.15.00 crore. GoI grant will be 90% for CFCs in NE & Hill States, Clusters with more than 50% (a) micro/village (b) women owned (c) SC/ST units.
Infrastructure Development (ID): Development of land, provision of water supply, drainage power distribution, non-conventional sources of Energy for common captive use, construction of roads, common facilities such as First Aid Centre, Canteen, other need based infrastructural facilities in new industrial (multi-product) areas/estates or existing industrial areas/estates/clusters.
The GoI grant will be restricted to 60% of the cost of project of Rs.10.00 crore. GoI grant will be 80% for projects in NE & Hill States, industrial areas/estates with more than 50% (a) micro/village (b) women owned (c) SC/ST units.
BE under the scheme for 2013-14 : Rs.53 crore.
Expenditure as on date -- Rs.21.90 crore.

Prime Minister's Employment Generation Programme (PMEGP).

A credit linked subsidy scheme of the Ministry, implemented through KVIC, DICs and State KVI Boards with KVIC as the Nodal Agency at the national level.
Any individual above 18 years of age is eligible.
With an attractive quantum of subsidy (up to a maximum of 35% of project cost for special category in rural areas, including weaker sections), the scheme has become very popular.
The maximum cost of the project is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector.
Margin Money Subsidy of 25% of the project cost is given in rural areas and 15% in urban area for general category people.
Lower beneficiary's contribution of 5% for special category including weaker section of society and women, as against 10% for general category.
Since inception a subsidy of Rs.5166.71 crore has been released by the Ministry.
2,35,826 projects have been financed under the scheme generating an employment of 21.39 lakh.
For 2014-15, Rs.1418 cr. have been provided for the scheme.

Marketing Development Assistance Scheme

(A) BAR code

The basic objective of granting financial assistance to the MSEs is to enhance their competitiveness by motivating and encouraging them to use Global Standards in Bar Coding. The objective is to be achieved through use of Bar-coding by maximum number of MSEs and getting benefits like inventory control, wide acceptability of products in the domestic and world markets, higher efficiencies, lower costs, better quality assurance and greater acceptance of their products by local as well as international buyers.
To promote adoption of Bar Code by MSEs, 75% of annual recurring fee to MSEs for first three years w.e.f. 01.06.2007 is reimbursed as subsidy. This is in addition to reimbursement of 75% of the one time registration fee for Bar Coding w.e.f. 1st January, 2002. Motivating and encouraging MSEs for use of bar codes through conducting seminars on Bar Code, etc.

(B) International Trade fair/ exhibitions

To encourage Small & Micro exporters in their efforts at tapping and developing overseas markets.
Reimbursement of 75% of air fare by economy class and 50% space rental charges for Micro & Small manufacturing enterprises of General category entrepreneurs.
For women/SC/ST/NER Entrepreneurs, Govt. of India will reimburse 100% of space rent and economy class air fare.
The total subsidy on air fare & space rental charges will be restricted to Rs.1.25 lakh per unit.
During 2013-14, Rs.6 cr. have been provided for Bar Code and participation in International schemes.
Till date 131 units are benefitted.

National Manufacturing Competitiveness Programme (NMCP)

The National Manufacturing Competitiveness Programme (NMCP) is the nodal programme of the Government to develop global competitiveness among Indian MSMEs.
The Programme was initiated in 2007-08.

There are ten components under the NMCP targeted at enhancing the entire value chain of the MSME sector as given below:

Lean Manufacturing Competitiveness Scheme for MSMEs

Under the Lean Manufacturing Competitiveness Scheme, MSMEs are being assisted in reducing their manufacturing costs, through proper personnel management, better space utilization, scientific inventory management, improved process flows, reduced engineering time and so on.
The scheme is initially approved for 100 mini clusters, up-scaled and approved for 500 mini clusters after successful implementation of Pilot Phase.
BE allocation for 2013-14: Rs 15 crore.
Expenditure as on date -- Rs.0.82 crore

Promotion of Information & Communication Tools (ICT) in MSME sector

The main objective of the scheme is to encourage and assist potential MSME clusters to adopt ICT tools and applications in their production & business processes, with a view to improve their productivity and competitiveness in national and international markets.
BE allocation for 2013-14 : Rs. 18 crore.
Expenditure as on date -- Rs.0.07 crore

Technology and Quality Upgradation (TEQUP) Support to MSMEs

The objective of this component of NMCP is to sensitize MSMEs about the benefits that could accrue from usage of energy efficient technologies, reduction in emissions of Green House Gases, improve the acceptance of their products by product quality certification, thereby making them globally competitive.
BE allocation for 2013-14 : Rs. 20.50 crore
Expenditure as on date -- Rs.1.05 crore

Support for Entrepreneurial and Managerial Development of SMEs through Incubators

This component aims at nurturing innovative business ideas (new/ ingenious technology, process, products, procedures, etc.) which could be commercialized in a year.
BE allocation for 2013-14 : Rs10.50 crore.
Expenditure as on date -- Rs.1.55 crore

Design Clinics scheme for MSMEs

The activities under the scheme are; organizing seminars, workshops in MSME clusters including design projects of MSME units.
BE allocation for 2013-14 : Rs.14 crore.
Expenditure as on date -- Rs.5.00 crore

Enabling Manufacturing Sector to be Competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT)

The scheme, "Enabling Manufacturing Sector be Competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT)" is aimed to improve the quality of the products in the MSME sector and inculcate the quality consciousness in enterprises in this sector.
The major activities are (i) Introduction of Appropriate Modules for Technical Institutions; (ii) Organizing Awareness Campaigns for MSEs; (iii) Organizing Competition-Watch (C-Watch); (iv) Implementation of Quality Management Standards and Quality Technology Tools in selected MSMEs; (v) Monitoring International Study Missions.
BE allocation 2013-14 : Rs. 10 crore.
Expenditure as on date -- Rs.0.41 crore

Marketing Assistance and Technology Up-gradation in MSMEs Scheme:

Marketing Assistance and Technology Up-gradation in MSMEs is a strategic initiative for adoption of Modern Marketing techniques by MSMEs consistent with the requirement of global market.
It involves eight sub components for which Government of India funding assistance will be available through Technology Upgradation in Packaging, Skill Upgradation/ Development for modern marketing techniques, Competition studies, Special component for North Eastern Region, New markets through State/District level local exhibitions/Trade fairs, Corporate Governance practices, Marketing Hubs & Reimbursement to ISO 18000/22000/27000 certification.
BE allocation for 2013-14: Rs 5.00 Crore
Expenditure as on date -- Rs.0.02 crore

Building Awareness on Intellectural Property Rights for the Micro Small & Medium Enterprises (MSME)

The scheme has been launched to enable Indian MSMEs to attend global leadership and to empower them in using affective the tools of IPR of innovative projects.
The major activities under the scheme are Awareness/Sensitization Programmes on IPR, Pilot Studies for Selected Clusters/Groups of Industries, Interactive Seminars/Workshops, Assistance for Grant on Patent/GI Registration, Setting up of 'IP Facilitation Centre for MSME', Interaction with International Agencies.
The initiatives are taken on a PPP mode
BE for 2013-14 is Rs.3 crore.

Expenditure as on date -- Rs.1.21 crore

Plan Allocation for M/o MSME

XI Plan (2007-08 to 2011-12)

Rs.Crore

Year	2007-08	2008-09	2009-10	2010-11	2011-12	Total of XI Five Year Plan
BE	1642.00	1794.00	1794.00	2400.00	2700.00	10330.00
RE	1500.00	1725.00	1517.76	2390.02	2457.00	9589.78
Actual Exp.	1420.16	1658.05	1374.56	2271.61	2018.33	8742.71

XII Plan (2012-13 to 2016-17)

(Rs.crore)

Division	2012-13	2013-14 (Proposed)	2014-15	2015-16	2016-17	2012-17
DC-MSME	870.00	2,204.37	2,422.59	2,624.31	2,762.73	10,884.00
SME	265.00	333.00	304.00	324.00	309.00	1,535.00
ARI	1,700.00	2,726.22	2,426.26	2,426.26	2,426.26	11,705.00
TOTAL (M/o MSME)	2,835.00	5,263.59	5,152.85	5,374.57	5,497.99	24,124.00

Annual Plan 2013-14

(Rs.Crore)

Divisions	XII Plan	2013-14		Exp. (05.02.2014)
Divisions	XII Plan	BE	RE	Exp. (05.02.2014)
DC(MSME)	10884	870	839.43	619.14
SME	1535	265	296.83	201.44
ARI	11705	1842	1463.74	972.73
Total M/o MSME	24124	2977	2600.00	1793.31

Annual Plan 2014-15

(Rs.Crore)

Divisions	BE
DC(MSME)	910
SME	225
ARI	1842
Total M/o MSME	2977

(Source: PIB)