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MSME Sector Profile MSME Classifications

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MSME Sector Profile MSME Classifications MSME Sector Profile MSME classifications 2 India Scenario Overview • 6.33 crore MSMEs across various industries, employing over 11 crore people in 2017-18 • Over 6000 products ranging from traditional to high-tech items are being manufactured by the MSME Sector in addition to provide wide range of services National Contribution by MSMEs Leading Industries: MSME Sector Retail Trade, Except of Motor Vehicles and Motorcycles; Repair of Personal and Household Goods Manufacturing of Wearing Appearel; Dressing ` and Dying 45% of India’s 34.48% 28% of India’s Manufacturing 39.85% Manufacture of Food Products and Beverages GDP Output Other Service Activities Other Business Activities 3.77% 21% of Employment, 6.20% Others 40% of India’s 2nd highest after 6.94% 8.75% Exports agiculture 4 Source: Annual Report 2017-18, Ministry of Micro, Small and Medium Enterprises, Government of India Factors for MSMEs success Digital India Make in India ■ Robust IT infrastructure Skill India ■ Conducive policies and ■ Transparent and ■ An initiative to train favorable incentives for integrated government over 40 crore people in foreign investors services India in different skills by 2022 Exports MSME Strong Local Demand ■ Presence of SME Export Strengths ■ Growing population Promotion Council ■ Increasing number of ■ Global Demand for large industries Value Added Products Conducive Policies Robust Infrastructure ■ Credit support ■ Sector Specific Clusters ■ Quality assurance ■ Special Economic Zones ■ Encouraging ■ Industrial Corridors entrepreneurship 5 Government of India Initiatives (1/3) Credit Support • Credit Guarantee Fund for Micro and Small Enterprises Guarantee cover of 75% of the credit facility up to INR 50 lakh and 50% of the credit exposure above INR 50 lakh and below INR 1 crore • Micro Finance Programme 7.5% of the loan amount is provided by central government through SIDBI • Providing financial assistance on International Cooperation Up to 95% of airfare and space rent for entrepreneurs for participation in international events and to MSME business delegations • Financial assistance to set up new enterprises under PMEGP Subsidy is provided at 15% and 25% for Urban and Rural Areas respectively for beneficiary belonging to general category and 25% and 35% for Urban and Rural Areas respectively for beneficiary belonging to Special Category* • Funding support for implementing ‘Lean Manufacturing’ projects 80% of the cost of lean manufacturing consultant Sources: http://msme.gov.in/web/portal/Scheme.aspx . Special Category consist of SC / ST / OBC / Minorities / Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas 6 Government of India Initiatives (2/3) Assistance for Quality Control and Standardization • Financial assistance under Performance and Credit Rating Scheme 75% of the fee is reimbursed for carrying out rating through empanelled rating agencies • Funding support for conducting ‘QMS (Quality Management Standards) Awareness’ workshops • Reimbursement of registration fee for Bar coding Promoting Entrepreneurship • Support for setting up of ‘Business Incubators’ • Scheme for 'Entrepreneurship Skill Development Programmes (ESDP)' • Scheme for 'Supporting 5 selected universities / colleges to run 1200 entrepreneurship clubs per annum' • Scheme for 'Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme to Women' Sources: http://msme.gov.in/web/portal/Scheme.aspx 7 Government of India Initiatives (3/3) Skill Development • Assistance to Training Institutions Scheme • Funding support for setting up ‘Mini Tool Rooms’ and Training Centers under PPP mode • Scheme for 'Strengthening of Training Infrastructure of existing and new Entrepreneurship Development Institutions' Technical Support • Scheme for 'Marketing Assistance and Technology Up-gradation of MSMEs'- an NMCP (National Manufacturing Competitiveness Programme) Scheme • Scheme for 'Technology and Quality Upgradation (TEQUP) Support to MSMEs'- an NMCP Scheme • Scheme for 'Promotion of ICT in Indian Manufacturing Sector (ICT)'- an NMCP Scheme Marketing and Design Assistance • Marketing Assistance Scheme • Funding support for implementing ‘Design’ projects • Funding support for conducting assessment of IPR related needs of MSMEs Others • Scheme for 'Micro & Small Enterprises Cluster Development Programme (MSE-CDP) • National Awards under various category Sources: http://msme.gov.in/web/portal/Scheme.aspx 8 Gujarat Scenario A manufacturing powerhouse Gujarat is a leader in Chemicals, Petrochemicals, Dairy, Drugs and Pharmaceuticals, Cement and Ceramics, Gems and Jewellery, Textiles and Engineering Gujarat’s contribution to India in key products (% output) 91% 35.5% 78% Share in 65% 62% Gujarat’s GSDP 53% in 2016-17 32% 26% 19% Number of Industrial st Entrepreneur Memorandums 1 (IEMs) filed and implemented in India in the last 10 years 10 Source: Gujarat Socio – Economic Review 2017-18; DIPP; ASI 2015-16 Leading FDI destination • Gujarat was amongst the top three FDI attracting Top 5 sectors attracting maximum FDI inflows states in India in 2016-17 (Jan 2000 to Mar 2017) • Gujarat received FDI inflows worth INR 113,347 Automobiles 15% Crore (USD 17.44 billion) between Apr 2000 and Dec 2017, accounting for 5% of the total FDI inflow into India Telecommunications 11% FDI grew at a CAGR of ~58% between Cement & Gypsum Products 10% 2013-14 and 2016-17 Power 10% Chemicals (other than Fertilizers) 6% Others 48% Source: DIPP 11 Gujarat ranks among the top three in the country across various industrial indicators Percentage share in India's total Percentage share in India's total output net value addition 17.01 16.82 19.97 16.82% 16.86% 16.86 of India’s total 10.19 of India’s total 10.2 6.02 5.13 industrial 6.38 6.24 net value output addition Maharashtra Gujarat Tamil Nadu Karnataka Uttar Pradesh Percentage share in India's total Percentage share in total persons factories engaged in India 16.01 16.24 10.92% 13.79 10.48% 12.1 10.92 10.48 of total 7.06 of India’s total 6.57 7.01 6.56 persons factories engaged in India Tamil Nadu Maharashtra Gujarat Andhra Uttar Pradesh Pradesh 12 Source: Annual Survey of Industries Gujarat ranks among top three states in industrial output in leading MSME manufacturing sectors Pharmaceuticals Textiles Machinery and Equipment Chemicals Food Products Rubber and Plastic Products Source: Annual Survey of Industries Statistics 2015-16 13 Gujarat rated as Top Performing State in 2017, as per NCAER State Investment Potential Index • Gujarat secured 1st rank among 21 peer states on key factors critically linked to investments, industrial and economic activity in any state • Overall, Gujarat secured top position on six parameters assessed: • Land • Labour • Infrastructure • Economic climate • Political stability & Governance • Business perceptions 14 Source: National Council for Applied Economic Research (NCAER) MSME clusters in Gujarat 106 activity clusters have been identified across the state Number of Category Clusters Engineering 21 Chemicals 23 Textiles 18 Plastic Products Mineral based 16 Paper Products industry Chemical Industry Engineering Agro &Food 07 Processing Textile Industry Food Products Others 21 Mineral Products Others 15 Sector wise distribution of MSMEs in Gujarat Industry wise Break up of MSMEs Total MSMEs (up to 2nd Oct 2015) Industry Registered from 2006-2015 Others Textiles 105463 5% Trading Machinery and parts except electrical 30159 Activities 19% Mining and Quarrying 6578 Food Products 9106 Chemical & chemical Products 12131 Wood Products 4623 Rubber & Plastic Products 8784 Non-metallic mineral Products 6362 Basic Metal Industries 25872 Paper Products & Printing 6837 Electrical Machinery and Apparatus 7780 Transport equipment and parts 3114 Leather Products 6762 Service Beverages, Tobacco & Tobacco Products 1625 Activities Service Activities 47816 Manufacturing Trading Activities 72920 63% Others 20416 Total 376348 16 Sources: Industries Commissionerate , Government of Gujarat Growth of MSMEs in Gujarat Cumulative Growth of MSMEs in Gujarat • Total number of MSME(s) registered in 8000000 350000 Gujarat from 2006 to Sept. 2015: 7000000 300000 3,21,181 6000000 250000 5000000 200000 • Since, 20-Oct-2015 new MSMEs are 4000000 150000 registered under Udhyog Aadhar 3000000 2000000 100000 Memorandum (UAM) instead of EM-II. 1000000 50000 • Total 2,93,358 MSMEs have been 0 0 2010- 2011- 2012- 2013- 2014- 2015- registered under UAMs in Gujarat till 2011 2012 2013 2014 2015 2016 No.of Units 27940 79721 147955 206581 270740 321181 date Investment ( Rs. In Lacs) 890264 2051714 3343874 4617159 5976188 7231582 Micro – 2,39,037 ; Small – 52,404; Medium Employment 264867 627738 1008825 1392067 1802500 2064244 – 1,917 86% Rise in registrations in MSME units between Aug 2016 and Dec 2017 3.3 Million + MSME units in Gujarat according to NSS 73rd Round (2015-16) Note : The data for 2015-16 is up to 20-Oct-2015. 17 Sources: Industries Commissionerate , Government of Gujarat, NSS 73rd Round Support for MSMEs strengthened in Gujarat 2018-19 budget Rs. 50 Crore Rs. 450 Crore allotted as Start-Up for cottage and fund for MSMEs rural industries Rs. 16.5 Crore Rs. 35 Crore for marketing of for promotion of goods produced Khadi by artisans Rs. 843 Crore allocated towards development of MSMEs 18 Source: Gujarat Finance Department Government provides holistic support to MSMEs Financial Assistance Development of MSME • 50% decrease in price of Parks / sheds plots up to 3,000 sq m offered to • 4 dedicated MSME parks in MSME units as
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