Lok Sabha Question No. 2019 (UNSTARRED), answered on 2018-07-30
Subject: Performance of MSME Sector
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. 2019 TO BE ANSWERED ON 30.07.2018

## PERFORMANCE OF MSME SECTOR

## 2019.      SHRIMATI POONAMBEN MAADAM:

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

- (a) the details of jobs generated in the Micro, Small and Medium Enterprises(MSMEs) sector during each of the last three years and the current year, State/UT wise including the State of Gujarat;
- (b) the details of the contribution made by this sector to the nation's GDP and percentage contribution made towards the country's total exports during the said period;
- (c) the  details  of  the  major  challenges  faced  by  the  MSMEs  especially  with  regard  to facilitating their growth; and
- (d) the  steps  taken/proposed  to  be  taken  by  the  Government  to  encourage  the  MSME sector and generate more jobs in this sector?

## ANSWER

## MINISTER OF STATE (INDEPENDANT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

- (a): As  per  the  National  Sample  Survey(NSS)  73 rd round  conducted  during  the  period 2015-16, MSME sector has been creating 11.10 crore jobs (360.41 lakh  in manufacturing, 387.18  lakh  in  trade  and  362.82  lakh  in  other  services  and  0.07  lakh  in  Non-captive Electricity Generation and Transmission) in the rural and urban areas across the country.

Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  is  running  various schemes  to  boost  employment  generation  in  the  country.  Prime  Minister's  Employment Generation  Programme  (PMEGP)  is  a  major  credit-linked  subsidy  programme  aimed  at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth. Any individual above 18 years of age is eligible. General category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to  special  categories  such  as  scheduled  caste/scheduled  tribe/OBC  /minorities/women,  exserviceman,  physically  handicapped,  NER,  Hill  and  Border  areas  etc.  the  margin  money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector. Benefit can be availed under PMEGP for setting up of new units only.

The Scheme was launched during 2008-09. Since its inception, a total of 4.72 lakh micro  enterprises  have  been  assisted  with  a  margin  money  subsidy    of  Rs.10007.67  crore providing employment to an estimated 39.36 lakh persons, till 2017-18 (up to 31.03.2018). The details of job generated during each of the last three years and the current year, State/UT wise including the State of Gujarat is given at Annexure -I.

Coir Board, a statutory body under Ministry of MSME is implementing Coir Vikas Yojna (CUY) for sustainable development of Coir Industries in the coconut producing States. The details of employment generated in coir sector during the last three years are given at Annexure - II.

- (b): As per available  data,  the  details  of  the  contribution  made  by  MSME  sector  to  the nation's GDP is given below:

|                                   | 2014-15   | 2015-16   | 2016-17   |
|-----------------------------------|-----------|-----------|-----------|
| Share of MSME in total GDP (in %) | 29.7%     | 29.2%     | 28.9%     |

The percentage contribution made by MSME sector towards the country's total export is given below:

|                                           | 2014-15   | 2015-16   | 2016-17   | 2017-18   |
|-------------------------------------------|-----------|-----------|-----------|-----------|
| % Contribution to Country's total exports | 44.75%    | 49.86%    | 49.69%    | 48.58%    |

- (c): MSMEs  face  challenges like Availability of credit, technology up-gradation, marketing, and infrastructure. Sector face difficulties in mobilizing the capital fund to set up their industries and also market their product in competitive environment.
- (d): The  Ministry  of  MSME  has  taken  a  number  of  initiatives  for  the  promotion  and development of MSME sector across the country. Ministry of MSME is implementing Prime Minister's  Employment  Generation  Programme  (PMEGP),  Credit  Guarantee  Scheme  for Micro and Small Enterprises (CGTMSE), Credit Linked Capital Subsidy Scheme (CLCSS), for credit assistance and employment generation.

For Skill development and Infrastructure Development Ministry of MSME is running A  Scheme  for  Promoting  Innovation,  Rural  Industry  &  Entrepreneurship  (ASPIRE),  and Scheme of Fund for Regeneration of Traditional Industries (SFURTI).

For Quality improvement and to sustain market competitiveness Ministry has started ZED Scheme, Digital MSME Scheme etc.  Ministry has also launched many portals to help entrepreneurs in technology up gradation and to promote marketing of their product.

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## Annexure I referred to in reply to part (a) of the Lok Sabha Unstarred Qn. No. 2019 for answer on 30.07.2018

State-wise  position  of  employment  under  PMEGP  during  last  three  years  and  current  year ( up to 30.06.2018).

| Sr. No.   | State/UT                 |   2015-16 |   2016-17 |   2017-18 |   2018-19 (up to 30.06.2018) |
|-----------|--------------------------|-----------|-----------|-----------|------------------------------|
| 1         | Jammu& Kashmir           |     12115 |     11691 |     30024 |                         8888 |
| 2         | Himachal Pradesh         |      5134 |      6916 |      7088 |                         1016 |
| 3         | Punjab                   |      7762 |      9858 |     12160 |                         2472 |
| 4         | UT Chandigarh            |       323 |       376 |       360 |                           56 |
| 5         | Uttarakhand              |      6161 |      9890 |     12904 |                         4648 |
| 6         | Haryana                  |      7232 |     11016 |     13744 |                         2728 |
| 7.        | Delhi                    |      2048 |       952 |       920 |                           40 |
| 8         | Rajasthan                |     14537 |     13408 |     12614 |                         4336 |
| 9         | Uttar Pradesh            |     43059 |     36315 |     43456 |                        12472 |
| 10        | Bihar                    |     19624 |     25872 |     18456 |                         5864 |
| 11        | Sikkim                   |       397 |       201 |       296 |                           40 |
| 12        | Arunachal Pradesh        |       104 |      1984 |      1672 |                          832 |
| 13        | Nagaland                 |      4998 |      7783 |      7440 |                         1232 |
| 14        | Manipur                  |      2715 |      8419 |      4800 |                         1568 |
| 15        | Mizoram                  |      9072 |      3400 |      1992 |                         1424 |
| 16        | Tripura                  |      5355 |     17961 |      8928 |                         1864 |
| 17        | Meghalaya                |      4824 |      2632 |       600 |                          528 |
| 18        | Assam                    |      9026 |     31498 |     18256 |                         8896 |
| 19        | West Bengal              |     12746 |     26604 |     10928 |                         3824 |
| 20        | Jharkhand                |     12873 |     10400 |      8888 |                         2464 |
| 21        | Odisha                   |     17629 |     20392 |     19192 |                         6184 |
| 22        | Chhattisgarh             |      9496 |     12856 |     11704 |                         6016 |
| 23        | Madhya Pradesh           |     16497 |     15520 |     14432 |                         2432 |
| 24        | Gujarat*                 |     14960 |     11629 |     15008 |                         3632 |
| 25        | Maharashtra **           |     20161 |     17799 |     26632 |                         8744 |
| 26        | Andhra Pradesh           |      7740 |     14148 |     12216 |                         3136 |
| 27        | Telangana                |      7761 |      6445 |      9520 |                         1488 |
| 28        | Karnataka                |     17284 |     30286 |     16920 |                         5560 |
| 29        | Goa                      |       500 |       660 |       400 |                           32 |
| 30        | Lakshadweep              |         0 |        00 |        00 |                           00 |
| 31        | Kerala                   |      9653 |     13068 |     10776 |                         3712 |
| 32        | Tamilnadu                |     20836 |     25764 |     32760 |                         4592 |
| 33        | Puducherry               |       447 |       699 |       352 |                           48 |
| 34        | Andaman &Nicobar Islands |       293 |      1398 |      1744 |                          296 |
|           |                          |    323362 |    407840 |    387184 |                       111064 |

## Annexure-II

Annexure II referred to in reply to part (a) of the Lok Sabha Unstarred Qn. No. 2019 for answer on 30.07.2018

| State          |   2015-16 |   2016-17 |   2017-18 |
|----------------|-----------|-----------|-----------|
| Kerala         |      1312 |       861 |      1629 |
| Tamil Nadu     |      1483 |      2383 |      1059 |
| Karnataka      |       102 |       432 |       287 |
| Andhra Pradesh |       879 |       652 |       193 |
| Odisha         |       325 |       225 |       375 |
| Others         |       108 |       226 |        89 |
| Total          |      4209 |      4779 |      3632 |