Lok Sabha Question No. 184 (UNSTARRED), answered on 2016-04-25
Subject: Impact of MNC on MSME
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: ASADUDDIN OWAISI

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

## LOK SABHA UNSTARRED QUESTION  NO. 184 TO BE ANSWERED ON 25.4.2016

## IMPACT OF  MNC  ON  MSME

## 184. SHRI ASADUDDIN OWAISI :

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

- (a) whether   the  Government  has   assessed   the   impact   of     the multinational companies on small and medium cottage industries, if so, the details and outcome thereof;
- (b) the number of such small and medium industries closed as per the list of census of Registered MSMEs;
- (c) whether  Government  has  assessed  the  impact  of  increased  FDI  in  retail  sector  on these industries, if so, the details thereof ; and
- (d) the steps taken / being  taken  by  the  Government  to protect and promote the said industries in the country ?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

- (a): Government  assesses  impact  of  the  multinational  companies  on  small  and  medium cottage  industries  through  periodic  consultations  with  stake  holders  such  as    Industries Associations.
- (b): Information on closed Micro, Small and Medium Enterprises (MSMEs) is collected by  periodically  conducting  All  India  Census  of  the  sector.    According  to  the    last  Census (Fourth) in which   data was collected with reference to base year  2006-07,   the   number of closed MSMEs in Registered Sector was 4.96 lakh.
- (c): Foreign  Direct  Investment    (FDI)  in  retail  sector  has  been  opened  in  a  calibrated manner.  The details of total FDI inflow in the retail sector from April 2000 to February 2016 is  given  in  Annexure.    Further,  no  study  has  been  conducted  by  the  Government  on  the impact of FDI in retail sector.
- (d): The  Government  is  implementing  several    schemes  /  programmes,  which  include National  Manufacturing  Competitiveness  Programme,  Credit  Guarantee  Scheme,  Credit Linked  Capital  Subsidy  Schemes,  Performance  and  Credit    Rating  Schemes,  Cluster Development  Programme,  etc.,  for  the  promotion  and  development  of  MSMEs  and  to enhance  their  competitiveness  and  productivity.    In  addition,  the  Ministry  has  notified  a framework for Revival and Rehabilitation of MSMEs (June 2015), in exercise of the powers conferred  under  section  9  of  the  Micro,  Small  and  Medium  Enterprises  Development  Act, 2006 in order to focus attention on the issues of addressing sickness and revival of MSMEs, pending a detailed revision of the legal framework for resolving insolvency/bankruptcy.

## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA UNSTARRED QUESTION NO. 184 FOR ANSWER ON 25.4.16

Statement on Financial Year Wise FDI Equity Inflows from April 2000 to February

2016 Sector Retail Trading

| Sl. No.   | Year              |   FDI in US$ million |
|-----------|-------------------|----------------------|
| 1         | 2000-01 Apr.-Mar. |                 0    |
| 2         | 2001-02           |                 0    |
| 3         | 2002-03           |                 0    |
| 4         | 2003-04           |                 0    |
| 5         | 2004-05           |                 0    |
| 6         | 2005-06           |                 0    |
| 7         | 2006-07           |                 0    |
| 8         | 2007-08           |                 1.27 |
| 9         | 2008-09           |                 0.09 |
| 10        | 2009-10           |                13.73 |
| 11        | 2010-11           |                26.27 |
| 12        | 2011-12           |                31.7  |
| 13        | 2012-13           |                22.31 |
| 14        | 2013-14           |                11.3  |
| 15        | 2014-15           |               168.72 |
| 16        | 2015-16           |               257.67 |
|           | Total             |               533.05 |

Note : 1.      Amount  includes  the  inflows  received  through  SIA/FIPB  route,  acquisition  of existing shares and RBI's automatic route only

2.  Complete/Separate data on NRI Investment is not maintained by RBI.  However, the above FDI inflows data on NRI Investment, includes Investment by NRI's, who have disclosed their status as NRI's, at the time of making their   investment.