Lok Sabha Question No. 2301 (UNSTARRED), answered on 2016-05-09
Subject: Performance of Small and Medium Industries
Ministry: COMMERCE AND INDUSTRY
Asked by: SHIVKUMAR CHANABASAPPA UDASI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

## UNSTARRED QUESTION NO. 2301. TO BE ANSWERED ON MONDAY, THE 9 TH  MAY, 2016.

## PERFORMANCE OF SMALL AND MEDIUM INDUSTRIES

## 2301.  SHRI SHIVKUMAR UDASI:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्यग ं ्री

- (a) whether a recent report by the Quality Council of India has presented a dismal picture of the country's small and medium industries and if so, the details thereof;
- (b) whether as per the report, most of the MSMEs don't even qualify to be rated on the  quality  standard  and  only  small  percentage  of  companies  received  bronze, silver and gold marking and if so, the details thereof;
- (c) whether the majority of MSMEs has reported unskilled work force as the major problem and if so, the details thereof;
- (d) whether  the  industries  have  singled  out  outdated  technologies  as  a  reason behind dismal performance and whether 38 per cent industries raised concern over funding procedures and if so, the details thereof along with the reaction of the Government thereto; and
- (e) whether the Government has taken any remedial steps in this regard and if so, the details thereof?

## ANSWER

वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): Quality  Council  of  India  (QCI)  has  submitted  a  National  Pilot  Report  on  'ZED (Zero Defect Zero Effect) Maturity Assessment Model focusses on improving the processes of MSMEs through its 5 level rating based on 50 parameters.  The report however does bring out various issues the MSME sector is grappling with in terms of quality of process and environment issues.
- (b): The  ZED  Maturity  Assessment  Model  Pilot  Report  was  aimed  at  testing  the Model on a sample set of 64 MSMEs across sectors & regions in MSMEs under 25  sectors  of  Make  in  India  and  cannot  be  generalized  for  overall  MSMEs  in India. The final assessment highlights that about 72% of the pilot MSMEs did not receive any rating while only about 28% companies received a rating in bronze, silver  and  gold  categories.  It  points  out  to  the  urgent  need  of  national  scale assessment and handholding of MSMEs through ZED scheme.
- (c): One of the major concerns expressed by MSMEs is the non-availability of skilled human resources.
- (d) : Access  to  technology,  finance,  regulations  and  inspections  are  other  major concerns expressed by the MSMEs.
- (e) : MSMEs are the engine of growth of economy. ZED Maturity Assessment Model is prepared to help the industry improve their quality and competitiveness in the global market and give support to the Make in India initiative of the Government by providing incentives to MSMEs to undergo assessment and handholding for improving their processes. ZED Certification would be used to reduce inspections and  making  it easier for MSMEs  to  do  their  business.  The  analysis  of assessment data for pilot MSMEs indicates opportunities for improvement which can be incorporated during the national roll out.

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