Lok Sabha Question No. 1319 (UNSTARRED), answered on 2017-07-24
Subject: Promotion of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: KRUPAL BALAJI TUMANE, SHIVKUMAR CHANABASAPPA UDASI, REKHA ARUN VERMA

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. †1319 TO BE ANSWERED ON 24.07.2017

## PROMOTION OF MSMES

## †1319.        SHRI KRUPAL BALAJI TUMANE: SHRI SHIVKUMAR UDASI: SHRIMATI REKHA VERMA:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the  contribution  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  sector  in  the  gross domestic product of the country during the last three years;
- (b) whether the Government has implemented any special schemes to increase the competitiveness amongst MSMEs in the country;
- (c) whether it has been made mandatory for central public sector enterprises to make 20 per cent of their procurements from MSMEs and if so, the total procurements made therefrom during the last three years; and

(d) the other steps taken by the Government to promote competitiveness and productivity in the MSMEs sector?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI HARIBHAI PARATHIBHAI CHAUDHARY)

(a): As per the  data  available  with  Central  Statistics  Office  (CSO),  Ministry  of  Statistics  & Programme Implementation, Government of India, the contribution of Micro, Small and Medium Enterprises (MSME) in the Gross Value Added (GVA) of the country for the year 2013-14, 201415  and  2015-16  at  current  prices  are  32.26%,  31.86%  and  31.60%  respectively  and  the contribution in Gross Domestic Product (GDP) of the country for the year 2013-14, 2014-15 and 2015-16 at current price are 29.76%, 29.39% and 28.77% respectively.

However, as the CSO does not compile estimates (GVA/GDP) of MSME sector based on the  definition  of  MSME  sector,  an  approximation  based  on  the  results  of  Annual  Survey  of Industries (ASI) and surveys on unorganised sector has been made to arrive at the contribution, mentioned in the above para.

(b): Yes madam, the Government has implemented the National Manufacturing Competitiveness Programme for increase the competitiveness amongst MSME in the country.

(c): The Government of India has introduced Public Procurement Policy for Micro and Small Enterprises (MSEs) Order-2012 which is applicable to all Central Ministries/Departments/CPSUs and  is  effective  from  the  1 st April,  2012.  Under  the  said  Policy,  every  Central  Government Ministry, Department and Public Sector Undertaking shall procure a minimum of 20 per cent of their total annual value of goods or services from Micro and Small Enterprises (MSEs). Out of this 20%, it is mandatory to earmark 4% for MSEs owned by SC/ST entrepreneurs from the 1 st April, 2015.

The Details of Procurement during last three years (reported by CPSUs till 18 th July, 2017) are given below:

(Figures in Rs.  Crore)

|     Year |   Total Procurement |   Procurement from MSEs(including SC/ST owned MSEs ) | Procurement from MSEs owned by SC/ST   |
|----------|---------------------|------------------------------------------------------|----------------------------------------|
| 131767   |             15300.6 |                                                59.37 | 2014-15                                |
| 134848   |             18246.2 |                                                99.37 | 2015-16                                |
|  55291.6 |             13289   |                                               195.22 | 2016-17* (60 CPSUs)                    |

* Provisional

(d): The  Ministry  of  Micro,  Small  &  Medium  Enterprises  (MSME)  has  introduced  various schemes to help MSMEs to increase their competitiveness and productivity in the country. These, inter-alia,  include  National  Manufacturing  Competitiveness  Programme  (NMCP),  Micro  and Small Enterprises- Cluster Development Programme (MSE-CDP), Credit Linked Capital Subsidy Scheme  (CLCSS),  A  Scheme  for  Promoting  Innovation,  Rural  Industry  &  Entrepreneurship (ASPIRE) and Scheme of Fund for Regeneration of Traditional Industries (SFURTI), etc.

The National Manufacturing Competitiveness Programme (NMCP) highlights the need for enhancing  the  competitiveness  of  Indian  Manufacturing  Sector.  The  NMCP  is  the  nodal programme of the Government of India to develop global competitiveness among Indian MSMEs. Under  NMCP  the  schemes  are  (i)Support  for  Entrepreneurial  and  Managerial  Development  of SMEs  through  Incubators    (ii)Building  Awareness  on  Intellectual  Property  Rights  (IPR)  for MSME  (iii)Enabling  Manufacturing  Sector  to  be  competitive  through  Quality  Management Standard  &  Quality  Technology  Tools  (QMS/QTT)  subsumed  under  Zero  Defect  Zero  Effect (ZED) (iv)Digital MSME Scheme (v)Technology and Quality Up gradation Support to MSMEs (vi)Design  Clinic  Scheme  for  design  expertise  to  MSMEs  Manufacturing  sector  and  (vii)Lean Manufacturing Competitiveness Scheme.

The  Ministry  of  MSME  has  also  adopted  the  Cluster  Development  approach  as  a  key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.

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