Lok Sabha Question No. 5022 (UNSTARRED), answered on 2018-03-26
Subject: Promotion of MSMEs under MII
Ministry: COMMERCE AND INDUSTRY
Asked by: SHIVAJI ADHALRAO PATIL, Shrirang Appa Barne, PRITAM GOPINATH MUNDE, ANANDRAO  ADSUL

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 5022 TO BE ANSWERED ON MONDAY, THE 26 TH  MARCH, 2018.

## PROMOTION OF MSMEs UNDER MII

## 5022.  SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI SHRIRANG APPA BARNE:

DR. PRITAM GOPINATH MUNDE:

SHRI ANANDRAO ADSUL:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्योग म त्री

- (a) whether  the  Government  has  made  any  assessment  for  determining  the manner in which the 'Make in India' (MII) initiative has helped the Micro, Small and  Medium  Enterprises  (MSMEs)  sector  in  the  country,  if  so,  the  details thereof  along  with  the  manner  and  the  extent  to  which  it  has  helped  in promotion of the MSME sector so far;
- (b) whether  the  objective  of  the  MII  programme  is  to  increase  manufacturing activities  and  generate  employment  for  the  youth  by  training  them  in  skills under the skill development programme, if so, the details thereof;
- (c) whether  the  Government    proposes  to  ensure  that  the  Foreign  Direct Investment  provides  a  boost  to  the  MSME  sector  in  the  country,  if  so,  the details thereof; and
- (d) the  other  steps  taken/proposed  to  be  taken  by  the  Government  for  the promotion of the MSME sector in the country?

## ANSWER

## वाणिज् यवव द्योग म त्रालयमेंराज् यम त्री(श्री सी.आर.चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a): No, Madam; The Department of Industrial Policy and Promotion (DIPP) has not made any assessment of the impact of 'Make in India' initiative on Micro, Small and Medium Enterprises (MSMEs) sectors.
- (b): 'Make  in  India'  initiative  was  launched  on  September  25,  2014  with  the objective of facilitating investment, fostering innovation, building best in class manufacturing  infrastructure,  making  it  easy  to  do  business  and  enhancing skill development. Action Plans for 21 key sectors were identified for specific actions  under  (i)  Policy  Initiatives  (ii)  Fiscal  incentives  (iii)  Infrastructure Creation  (iv)  Ease  of  Doing  Business  (v)  Innovation  and  R&D  (vi)  Skill Development areas. The initiatives under 'Make in India' are targeted towards

employment creation and skill development of youth in both urban and rural areas.  The  data  for  employment  generated  under  this  initiatives  is  not centrally compiled.

- (c): India has one of the most liberalized FDI policy in the world, wherein 100% FDI under automatic route is permitted in most of the sectors/ activities. There is only a small list of sectors/ activities where FDI is regulated i.e. subjected to government  approval,  cap  or  having  other  conditionalities.  The  FDI  policy equally applies to MSME sector.

Government  reviews  FDI  policy  on  an  ongoing  basis  to  ensure  that  India remains attractive & investor friendly destination. Government has undertaken a number of reforms in FDI policy in recent years. These measures have been taken  with  a  view  to  simplify  the  FDI  policy  and  provide  ease  of  doing business to the foreign investors thereby increasing FDI inflows complement and  supplement  domestic  investment.  Domestic  companies  are  benefited through FDI by way of enhanced access to supplementary capital and stateof-art-technologies;  exposure  to  global  managerial  practices  amounting  into employment  generation  and  accelerated  growth  of  the  sector,  including MSMEs of the country.

To look after the interest of Indian SME sector, certain provisions have been provided  for  FDI  in  retail  trading  sector.  For  retail  trading  of  single  brand products,  in  respect  of  proposals  involving  foreign  investment  beyond  51%, sourcing of 30% of the value of goods purchased, has been mandated to be done  from  India,  preferably  from  MSMEs,  village  and  cottage  industries, artisans and craftsmen, in all sectors.

Statement on sector-wise FDI equity inflows from October 2014 to December 2017 is placed at Annexure.

- (d): The Ministry of MSME has taken several steps to promote and stimulate the growth  of  MSME  Sector  in  the  country.  These  include  simplification  of  the registration process through a one page Udyog Aadhar Memorandum (UAM), introduction of the 'MSME SAMBANDTH' portal for monitoring the implementation of public procurement policy for the MSEs and launching of the 'MSME SAMADHAN' portal for enabling MSMEs to directly register their cases relating to delayed payments. In addition, Ministry of MSME also helps the MSME Sector through its schemes/ programmes which include the Prime Minister's  Employment  Generation  Programme  (PMEGP),  Credit  Guarantee Scheme, Credit Linked Capital Subsidy Scheme (CLCSS), National Manufacturing Competitiveness Programme, Cluster Development Programme, Marketing Development Assistance and Skill/ Entrepreneurship Development Programme etc.

*******

## ANNEXURE

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (c)  OF  THE  LOK SABHA  UNSTARRED  QUESTION  NO. 5022 FOR ANSWER  ON 26.03.2018.

## STATEMENT ON SECTOR-WISE FDI EQUITY INFLOWS From OCTOBER 2014 TO DECEMBER 2017

(Amount in US$ million)

|   S.No | Sector                                                                                                              | Amount of FDI Inflows   |   %age of Total Inflows |
|--------|---------------------------------------------------------------------------------------------------------------------|-------------------------|-------------------------|
|      1 | SERVICES SECTOR (Fin.,Banking,Insurance,Non Fin/Business,Outsourcing,R&D,Courier,Tech. Testing and Analysis, Other) | 23,395.31               |                   17.25 |
|      2 | COMPUTER SOFTWARE & HARDWARE                                                                                        | 16,586.16               |                   12.23 |
|      3 | TELECOMMUNICATIONS                                                                                                  | 13,447.98               |                    9.91 |
|      4 | TRADING                                                                                                             | 10,209.33               |                    7.53 |
|      5 | CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES                                                                            | 9,655.33                |                    7.12 |
|      6 | AUTOMOBILE INDUSTRY                                                                                                 | 7,565.32                |                    5.58 |
|      7 | CHEMICALS (OTHER THAN FERTILIZERS)                                                                                  | 4,347.96                |                    3.21 |
|      8 | POWER                                                                                                               | 3,617.98                |                    2.67 |
|      9 | HOTEL & TOURISM                                                                                                     | 3,361.00                |                    2.48 |
|     10 | INFORMATION & BROADCASTING (INCLUDING PRINT MEDIA)                                                                  | 3,309.16                |                    2.44 |
|     11 | ELECTRICAL EQUIPMENTS                                                                                               | 3,269.64                |                    2.41 |
|     12 | DRUGS & PHARMACEUTICALS                                                                                             | 2,895.18                |                    2.13 |
|     13 | NON-CONVENTIONAL ENERGY                                                                                             | 2,874.03                |                    2.12 |
|     14 | HOSPITAL & DIAGNOSTIC CENTRES                                                                                       | 2,490.64                |                    1.84 |
|     15 | METALLURGICAL INDUSTRIES                                                                                            | 2,288.83                |                    1.69 |
|     16 | FOOD PROCESSING INDUSTRIES                                                                                          | 2,288.33                |                    1.69 |
|     17 | CEMENT AND GYPSUM PRODUCTS                                                                                          | 2,263.72                |                    1.67 |
|     18 | SEA TRANSPORT                                                                                                       | 2,091.46                |                    1.54 |
|     19 | MISCELLANEOUS INDUSTRIES                                                                                            | 1,850.59                |                    1.36 |
|     20 | INDUSTRIAL MACHINERY                                                                                                | 1,607.76                |                    1.19 |
|     21 | CONSULTANCY SERVICES                                                                                                | 1,504.31                |                    1.11 |
|     22 | TEXTILES (INCLUDING DYED,PRINTED)                                                                                   | 1,321.72                |                    0.97 |
|     23 | AIR TRANSPORT (INCLUDING AIR FREIGHT)                                                                               | 1,071.48                |                    0.79 |
|     24 | RUBBER GOODS                                                                                                        | 1,017.43                |                    0.75 |
|     25 | RETAIL TRADING                                                                                                      | 867.33                  |                    0.64 |
|     26 | MINING                                                                                                              | 837.26                  |                    0.62 |
|     27 | CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure and construction-development projects         | 788.14                  |                    0.58 |
|     28 | MEDICAL AND SURGICAL APPLIANCES                                                                                     | 787.44                  |                    0.58 |
|     29 | MISCELLANEOUS MECHANICAL & ENGINEERING INDUSTRIES                                                                   | 745.25                  |                    0.55 |
|     30 | PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS)                                                                      | 732.07                  |                    0.54 |
|     31 | EDUCATION                                                                                                           | 706.92                  |                    0.52 |

| 32   | DIAMOND,GOLD ORNAMENTS                                    | 652.68     | 0.48   |
|------|-----------------------------------------------------------|------------|--------|
| 33   | SOAPS, COSMETICS & TOILET PREPARATIONS                    | 497.31     | 0.37   |
| 34   | FERMENTATION INDUSTRIES                                   | 466.70     | 0.34   |
| 35   | PAPER AND PULP (INCLUDING PAPER PRODUCTS)                 | 435.50     | 0.32   |
| 36   | ELECTRONICS                                               | 432.64     | 0.32   |
| 37   | PETROLEUM & NATURAL GAS                                   | 365.04     | 0.27   |
| 38   | VEGETABLE OILS AND VANASPATI                              | 332.76     | 0.25   |
| 39   | AGRICULTURE SERVICES                                      | 286.30     | 0.21   |
| 40   | FERTILIZERS                                               | 272.59     | 0.20   |
| 41   | RAILWAY RELATED COMPONENTS                                | 268.08     | 0.20   |
| 42   | PRINTING OF BOOKS (INCLUDING LITHO PRINTING INDUSTRY)     | 264.99     | 0.20   |
| 43   | MACHINE TOOLS                                             | 201.41     | 0.15   |
| 44   | BOILERS AND STEAM GENERATING PLANTS                       | 196.87     | 0.15   |
| 45   | EARTH-MOVING MACHINERY                                    | 195.30     | 0.14   |
| 46   | GLASS                                                     | 170.55     | 0.13   |
| 47   | SUGAR                                                     | 155.55     | 0.11   |
| 48   | CERAMICS                                                  | 125.52     | 0.09   |
| 49   | AGRICULTURAL MACHINERY                                    | 99.98      | 0.07   |
| 50   | GLUE AND GELATIN                                          | 99.73      | 0.07   |
| 51   | SCIENTIFIC INSTRUMENTS                                    | 90.00      | 0.07   |
| 52   | TIMBER PRODUCTS                                           | 79.47      | 0.06   |
| 53   | COMMERCIAL, OFFICE & HOUSEHOLD EQUIPMENTS                 | 71.99      | 0.05   |
| 54   | LEATHER,LEATHER GOODS AND PICKERS                         | 57.86      | 0.04   |
| 55   | TEA AND COFFEE (PROCESSING & WAREHOUSING COFFEE & RUBBER) | 20.17      | 0.01   |
| 56   | DYE-STUFFS                                                | 14.02      | 0.01   |
| 57   | INDUSTRIAL INSTRUMENTS                                    | 10.97      | 0.01   |
| 58   | DEFENCE INDUSTRIES                                        | 0.18       | 0.00   |
|      | Grand Total                                               | 135,659.22 |        |