Lok Sabha Question No. 3690 (UNSTARRED), answered on 2023-03-23
Subject: Manufacturing Output of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Gopal Chinayya Shetty

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

## LOK SABHA UNSTARRED QUESTION No. 3690 TO BE ANSWERED ON 23.03.2023

## MANUFACTURING OUTPUT OF MSMEs

## 3690.   SHRI GOPAL CHINNAYA SHETTY:

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

- (a) whether the percentage of share of Micro, Small and Medium Enterprises (MSMEs) in the total manufacturing output is declining every year and if so, the details thereof;
- (b) the challenges being faced in marketing the products of MSMEs and the steps taken by the Government to meet those challenges;
- (c) the percentage of market share of products of MSMEs during each of the last three years and the manner in which the said percentage could be increased; and
- (d) the steps taken by the Government during the last three years in this regard?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

- (a) & (c): As per the latest  information  received  from  Ministry  of  Statistics  and  Programme Implementation,  the  share  of  MSME  Manufacturing  Output  in  all  India  Manufacturing  Output during the years 2019-20, 2020-21 and 2021-22 were 36.6%, 36.9% and 36.2% respectively.
- (b): Ministry of MSME is implementing Procurement and Marketing Support (PMS) to address the challenges in respect of access to market. The Scheme promotes new market access initiatives and  enhance  the  marketability  of  products  and  services  of  MSMEs  all  over  India.  The  scheme extends benefits to MSMEs for creating new market access initiatives like:-
- i. Organizing /participation in National / International Trade Fairs / Exhibitions / MSME Expo, etc. held across the country.
- ii. Creating  awareness  and  educating  MSMEs  about  importance  /  methods/  process  of packaging in marketing, latest packaging technology, import-export policy and procedure,  GeM  portal,  MSME  Conclave,  latest  developments  in  international  / national trade and other subjects / topics relevant for market access developments etc.
- (d): The Ministry of Micro, Small and Medium Enterprises implements various schemes for the growth  and  development  of  MSME  sector  in  the  country.  The  schemes/programmes  inter  alia include Prime Minister's Employment Generation Programme (PMEGP), Credit Guarantee Scheme for  Micro  and  Small  Enterprises  (CGTMSE),  Micro  and  Small  Enterprises-Cluster  Development Programme (MSE-CDP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Entrepreneurship Skill Development Programme (ESDP) and National SC/ST Hub (NSSH).

To provide marketing support to Micro and Small Enterprises (MSEs), Ministry of MSME has notified the Public Procurement Policy for Micro and Small Enterprises (MSEs), Order, 2012 under the MSMED Act, 2006 which is effective from 1 st April 2012 and has become mandatory w.e.f.  April  2015.  Amendment  to  this  policy  mandates  25%  annual  procurement  from  MSEs  by Central  Ministries  /Departments/Central  Public  Sector  Enterprises  (CPSEs)  including  4%  from MSEs owned by SC/ST and 3% from MSEs owned by women entrepreneurs.

The Government has taken a number of recent initiatives to support MSMEs in the country, which includes no global tenders for procurement up to Rs. 200 crores.