Lok Sabha Question No. 1333 (UNSTARRED), answered on 2017-07-24
Subject: Impact of Make in India on MSME
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: POONAMBEN HEMATBHAI MAADAM

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

## LOK SABHA UNSTARRED QUESTION NO. 1333 TO BE ANSWERED ON 24.07.2017

## IMPACT OF MAKE IN INDIA ON MSME

## 1333. SHRIMATI POONAMBEN MAADAM:

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

- (a) whether  employment  generation  has  got  a  big  boost  due  to  the  role  played  by  the  Micro, Small and Medium Enterprises (MSMEs) sector in the country and if so, the details thereof;
- (b) whether  the  Government  has  made  any  evaluation  to  assess  the  impact  of  Government's Make  in  India  (MII)  Initiative  on  MSMEs  in  the  country  and  if  so,  the  details  and  the  findings thereof;
- (c) whether MII programme has been successful in generating jobs in the country and if so, the details thereof; and
- (d) the measures/initiatives taken by the Government to bring in Foreign Direct Investment (FDI) in the MSME sector?

## ANSWER

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

- (a): Yes, Madam. The government monitors the employment in the MSME sector in the country by conducting All India Census of the sector, periodically. As per the last census (Fourth) of Micro, Small  &  Medium  Enterprises  data  collected  with  reference  to  base  year  2006-07,  as  well  as  data extracted from the Economic Census 2005 conducted by Central Statistical Office (CSO), Ministry of  Statistics  &  Programme  Implementation  (MoSPI),  for  activities  excluded  from  Fourth  Census, namely Wholesale/retail trade, legal, educational and social services, hotels & restaurants, Transports and storage & warehousing (except cold storage), the total  employment in  the  MSME  sector was 805.24 lakh.
- (b): The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  has  not  made  any assessment of the impact of Make in India initiative on MSMEs.
- (c): The 'Make in India ' initiative launched on 25 th September, 2014 aims at promoting India as an important investment destination and a global hub in manufacturing, design and innovation. Make in  India  initiative  aims  to  create  a  conducive  environment  for investment,  development of modern and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between Government  and industry through a positive mind set. Industrial production and employment  generation  are  influenced  be  a  range  of  domestic  factors  and  international  factors, including enabling policies like Make in India. Government has been taking steps to boost industrial development, capital formation and employment generation in the country. Besides Make in India, these,  inter-alia,  include  'Start-up  India'  initiative  and  'Ease  of  Doing  Business'.  Steps  taken  to improve  ease  of  doing  business  include  simplification  and  rationalisation  of  existing  rules  and introduction of information technology, setting up of an  Investor Facilitation Cell, launch of e-biz Portal  and  liberalising  policy  for  industrial  licensing.  Details  of  employment  generated  are  not centrally compiled.
- (d): 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 also equally applies to small and medium enterprises in the sectors.