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New Policy Governing The Industrial Activity In The MSME Sector

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Union Minister for MSME Kalraj Mishra in August 2014 said the proposed new policy governing the industrial activity in the MSME sector would be “finalised in the next 3-4 months”.

Speaking at an MSME industry workshop in Hyderabad, he said the details of the new policy highlighted in the recent Budget speech, aimed at “redefining” the MSME sector activity, was being chalked out by a select committee formed with officials from the Reserve Bank of India, Ministry of Finance and the MSME ministry.

“The new MSME policy would primarily seek to redefine the sector in terms of annual turnover, capital employed and the labour engaged at the factory. It would also look into tweaking the RBI guidelines for treating nonperforming assets (NPAs) in the MSME sector. We are examining the statespecific policies in place in various states to come out with an effective national MSME policy,” he added.

The policy would also reaffirm the existing laid out mandatory procurement of MSME-originated products by the public sector units (PSU). According to the MSME ministry, the new policy will make it compulsory for PSUs to procure 20 per cent of their need-based products from MSMEs, including four percent from small industry units operated by women entrepreneurs.

Plan to set up 15 tool rooms

On the Centre’s proposal to set up 15 tools rooms in the country, Mishra said the ministry had finalised locations for nine of these and was in the process of evaluating sites for the rest of them. One such tool room would be come up in Visakhapatnam on 20 acres land allotted by the state government. Confirming this, Arvind Patwari, director of MSME Development Institute in Hyderabad, said the proposed facility entailed aninvestment of Rs 120 crore and was capable of training 200-300 trainees.

Launches JobsDialog

Mishra launched JobsDialog, the country’s first mobile-based recruitment solution designed by the city-based TMI Group. According to TMI, the product is designed keeping in view the unique and dynamic talent requirements of MSMEs. JobsDialog has a tie-up with Idea Cellular which provides access to jobseekers who are subscribers of Idea. Alternatively, the jobseekers can give a missed call to register themselves. In turn, TMI short lists people who match the requirement of different SMEs.

posted Sep 21, 2016 by Lub Msme (message)

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The Third Edition of IMS Foundation and Laghu Udyog Bharati’s flagship event ‘IMS Manufacturing Trade Fair India and Manufacturing Show-2014 was organized in Bangalore wherein India Inc. pitched in for innovations and quality concepts as global competition is now a reality in Indian corporate landscape. The three-day Summit organized by IMS Foundation and LUB on September 11-13, 2014 was inaugurated by Union Minister for Chemicals and Fertilizers Mr. Ananth Kumar in the august presence of Mr. Madhav Lal, Secretary MSME Ministry, Mr. Ravindra Nath, CMD, National Small Industries Corporation Limited, Mr. Walter Yeh EVP Taipei WTC and Ambassador Chung Kwang Tien - Rep Taipei Eco and Cultural Centre.

The theme for the third edition aptly focused on ‘Renewed focus on the Indian Manufacturing Industry: Make in India’ as that is what exactly Prime Minister Mr. Narendra Modi is pitching in for considering the huge business potential and the quality outlook change among the foreign countries towards India in the recent years. Within the overarching agenda to facilitate India’s transformation into an economically vital, technologically innovative, socially and ethically vibrant global leader by year 2022, IMS Foundation focus this year was on the revival of the Manufacturing sector, Economic growth, fast tracking Infrastructure and improved Governance.

Inaugurating the three-day IMS Summit Union Minister for Chemicals and Fertilizers Mr. Ananth Kumar said: “India needs to empower locals and equip them with appropriate tools to take the nation to the next level of quality and excellence.” He further said: “Manufacturing is an area that holds a lot of promise in the country. If India has to become prosperous, the manufacturing sector should be given priority. We need to bridge the gap between small, medium and large scale industries and such expos are platforms to ensure wide scope for collaborations.” 

At the Summit precisely every speaker stressed on the need for sustaining ‘Quality’ if Indian Industry had to face the increasing challenges in the highly laissez faire global economic environment. A few sessions entirely focused on models, processes and approaches pursued by Industry which has made it to take the numero uno position in their pursuit for Business Excellence.

Mr. Ananth Kumar said: “We should derive inspiration from Prime Minister Shri. Narendra Modi’s Independence Day speech and ensure we ‘Make in India’ and goods produced in India carry the ‘Made in India’ tag worldwide. Within the first hundred days of the Narendra Modi government, we will announce the first ever national policy on MSME. For India to prosper, the manufacturing sector needs to double its contribution to the country’s GDP. We need to create a single window system in the real sense of the word and facilitate smooth provision of infrastructure and land for micro, medium & small scale enterprises. On behalf of Shri Kalraj Mishra – Union Minister for MSME, it is my pleasure to announce that we will be establishing a tool room in Bangalore and a textile cluster in Mysore. As part of the Union budget, the Government of India had announced ten thousand crores towards venture capital for new enterprises and start-ups. It is our job to create an environment that will ensure an inflow of one thousand crores to Bangalore and Karnataka, by supporting the starting up of small and medium scale companies. Our partnership with Taiwan will be a success story and it is inevitable to have healthy competition from other growing economies.” 

IMS 2014 was an exclusive business-to-business exhibition, the single largest convergence of the best talent from the manufacturing and engineering industries across the globe. The uniqueness of this Edition was about interacting and networking with international and national audiences including global manufacturers, investors, diplomats, Government officials and industry stalwarts and understand the investment in Technology, Quality systems and Applications development.

Over 200 CEOs, domain experts, top bureaucrats, senior quality and strategic planning professionals from across the nation were present at the threeday Summit to exchange and share their inputs. Welcoming the august gathering Mr. Yajnanarayana Kammaje, Chairman, IMS, Organizing Committee said: “The Manufacturing Industry overall is looking good with new government taking over the charge and several policy measures underway, like the FDI in defence manufacturing is a welcome move. Also with a good practical budget, there is a marked positive change in the overall sentiments, there is an upswing in the industry, key user industries such as the Automobile, Electronics & Information Technology, Energy & Environment, Infrastructure, Auto & Components and Aerospace are set to fuel the growth of Indian Manufacturing industry”. 

IMS 2014 is a greatly expanded fair with many special programmes and sessions specially designed for a cross section of the student and business community primarily focusing on creating job opportunities for the nation. This edition had highly narrowed sessions on Innovation, Aspiring Entrepreneurship and vendor development with speakers sharing their thought processes and experiences to the participants. Keeping in view the fast changing world economic dynamics and how India Inc has to make its moves to grab business opportunities at the world markets, deliberation topics were chosen to derive maximum knowledge sharing on a single platform. Concerns related to economy, infrastructure, governance, quality and innovation were discussed exhaustively. Thought leaders from industry, government officials and domain experts shared their perspectives on contemporary topics and provided ample pathways for MSME sector to learn from experiences and incorporate best practices to meet challenges ahead on.

LUB, as the premier industry association in India, has always been at the forefront of creating and sustaining an environment conducive to the growth of MSME sector in India, partnering industry and government alike through advisory and consultative processes. It is committed to competitiveness for sustainable and inclusive growth of India, reflecting its commitment to balanced growth encompassing all sectors of the economy and society.

As India now stands at the crossroads of reaching the pinnacle of Business Excellence, a cautious approach is what the need of the hour is. And the onus now lies on the neo-age leadership. Prime Minister Mr. Narendra Modi has called upon India Inc especially the MSME sector to enhance the quality of life though its quality and innovative initiatives and practices. 


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Mr. Anand Mahindra’s recorded speech delivered at the IMS 2012 Curtain Raiser.​

The timing of the India Manufacturing Show 2012 is very fortuitous because I truly believe that we might be on the threshold of a new era for manufacturing in India. Manufacturing in India has always reminded me of those fairy tales where the quiet, diligent, honest heroine is constantly pushed aside and overshadowed by her more high profile and glamorous sister. In India we have leapfrogged from the age of agriculture to the age of Information Technology without really going through an Industrial Revolution between the two. And as a result manufacturing for the last couple of decades has consistently been eclipsed by its more glamorous sibling, Information Technology. Happily, I think that situation is about to be rectified. With the adoption of the National Manufacturing Policy last October I am hopeful that manufacturing will finally get the focus that it deserves. It is after all the missing piece in India's growth story.

The preface to the new Policy recognizes the stagnant state of the manufacturing sector, and the need to accelerate its development. And here's a very good reason for doing this: For the first time there is a real pull for giving manufacturing the support it deserves. If India is to reap the benefits of its much-wanted demographic dividend, 220 million jobs will have to be created by the year 2025. And this is going to be impossible without a major contribution from the manufacturing sector. The Policy envisages that 100 million out of these 220 million jobs - a full 45% - will have to come from the manufacturing sector. And if this doesn't happen, we will have an angry and unemployed population of young people whose disenchantment will turn the demographic dividend into a demographic disaster. So almost overnight manufacturing has moved from playing a side role to being the lead actor on the economic stage. And this is an opportunity that we must seize with both hands.

The two large national goals of increasing the contribution of manufacturing to 25% of GDP and creating 100 million jobs have now to become our goals. The Government is displaying an appreciation of the potential that manufacturing holds and an intention to support it fully. I must particularly mention the efforts of the Government of Karnataka and express my thanks for its vision and its constant proactive support.

Government support is welcome and is necessary and I know that all my fellow manufacturers will leverage it to the fullest. But I would like to emphasize that the responsibility to achieve and outperform on the goals is really ours. I would even say that the goal of contributing 25% of GDP is not ambitious enough for a large sector like manufacturing. Why not 35%? Why not 50%? I believe the Government policies set out the baseline goals. But it is for us manufacturers to embrace the goals and indeed to enhance and to outstrip them. Government policy is but the supportive framework, the actions and the efforts have to be ours.

That's why I think the timing of the India Manufacturing Show is so perfect. At just the right moment, it offers a platform for the entire manufacturing fraternity across the spectrum to meet, to learn and collaborate with each other and with global players. It offers knowledge through technical seminars & inputs and networking through vendor development programes. Whether your industry is large, medium or small it offers a forum where you can add value to your business. It is a platform to dream, to act and to achieve.

The IMS Foundation supported by the Reliance Broadcast Network and Bloomberg TV has worked relentlessly to give a thrust to the manufacturing sector. This Show has set itself the ambitious goal of becoming the best B2B platform for Indian manufacturers globally. With supportive Government policies also falling into place it seems to me that this is the right time and the right place to make a concerted thrust to take the manufacturing sector to the next level of performance.

All the planets seem to be in alignment so to speak, for a very great leap forward. I would urge all of you in the manufacturing sector to make full use of this opportunity and to use this platform to grow your business and at the same time to grow the nation. 

I am always inspired by the story of the Chairman of Sony Corporation who in 1946, amidst the ashes of Japan's defeat in World War II articulated a seemingly impossible vision. In 1946, when Japan was on her knees, he said that Sony would see to it that in 50 years, the words 'Made in Japan' would stand for the best quality in the world. And he achieved that goal in far less than 50 years. I too dream of a time in the not too distant future when the words "Made by India" which is the tagline of the India Manufacturing Show, will stand for outstanding global quality. I believe that the India Manufacturing Show is the first step to facilitate and kick-start this ambition. With your help and your participation I have no doubt that we will move manufacturing from playing just a side role to being the hero of India's economic story

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This scheme is to promote technology in MSME sector.

The Ministry of Micro, Small & Medium Enterprises is implementing a "Digital MSME" Scheme for promotion of Information & Communication Technology (ICT) in MSME Sector and motivate MSMEs to adopt ICT tools and applications in their business processes.

The scheme is revolving around Cloud Computing which is emerging as a cost effective and viable alternative in comparison to in-house IT infrastructure installed by MSMEs. In cloud computing, MSMEs use the internet to access common as well as tailor-made IT infrastructure including Applications/Services which can greatly help MSMEs in almost every facet of their business.The scheme also has provision to give subsidy of Rs. 1 lakh per unitfor user charges for a period of 2 years.

 Initially, following four applications will be made available to MSMEs through various service providers: 
1. ERP
2. Accounting
3. Manufacturing/ Design
4. Regulatory Compliances including GST
More applications may be added need based in due course of time.

MSMEs may visit the Web Portal

At the home page of Web Portal MSMEs can view all the offered applications under this scheme with their monthly subscription cost.

There is option for MSME to get registered and access thee applications/services under this Scheme.

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Industrial Spectrum September 2014

The Ministry of Micro, Small & Medium Enterprises (MSME) and Samsung has entered into a partnership to set up Technical Schools in MSME Technology Centres across India. Under the MoU, 10 MSMESamsung technical schools will be set up across India - one each in Delhi, Ahmedabad, Aurangabad, Bhubaneswar, Chennai, Hyderabad, Kolkata, Ludhiana, Mumbai and Varanasi. 

The first MSME-Samsung Technical School has also been established at the MSME Extension Centre, Bal Sahyog, Connaught Place, in Delhi. 

“The initiative would train 10,000 youths per year who would have the opportunity to find placements in various appliances manufacturing organisations including Samsung,” Kalraj Mishra, Minister of Micro, Small and Medium Enterprises said. 

The schools will run Samsung’s Advanced Repair and Industrial Skills Enhancement (A.R.I.S.E.2) programme, providing students trade-specific training on various aspects of repair and troubleshootingfor consumer electronics products such as mobile phones, televisions, home theatres, home appliances and their related accessories.

“India is a key growth market for global consumer electronics manufacturing which lends itself to enormous employment opportunity. Our collaboration with the Ministry of MSME to create a pool of skilled workforce through the MSME-Samsung Technical Schools is a step in this direction,” B.D. Park, president & CEO, South West Asia, Samsung Electronics said. 

The students will also get real-time working experience at Samsung-authorised service centres. The partnership will provide a boost to trainees by incorporating a strong component of hands-on industry training, Samsung said. 

Samsung has already established one such lab at the ITI in Dheerpur, Delhi, in collaboration with the Directorate of Training and Technical Education, Government of NCT. It also has plans to establish more such labs across India. 

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Industrial Spectrum Oct-Nov 2014​

Creation of a vibrant entrepreneurial ecosystem could help increase the contribution of the micro, small and medium enterprise (MSME) sector to India’s GDP from the current 8 per cent to 15 per cent by 2020, and increase the sector’s share of employment from the current 28 per cent to over 50 per cent of total employment across the agricultural, manufacturing and services sectors, according to a new KPMG-CII study.

The distance India needs to travel in this regard is clear from the fact that in 12 other countries mentioned in the study, titled, The New Wave Indian MSME: An Action Agenda for Growth, the MSME sector’s GDP contribution varies from a low of 22 per cent in Brazil to a high of 85 per cent in Taiwal.

The only countries with lower employment shares than India are Argentina (15 per cent) and Russia (23 per cent). Others vary from UK’s 52 per cent to Canada’s 90 per cent. India’s 46 million MSMEs employ 106 million people; the study says appropriate policies can take this number up to 150 million.

Indian MSMEs, it adds, can benefit from growth in sectors such as telecom, electronics, IT/ITES, media, health care, pharmaceuticals, biotechnology, automotive, transport and logistics, industrial manufacturing, engineering and process equipment, chemicals, textiles, renewable energy, food and agriculture, retail,gems and jewellery, tourism and hospitality, education, civil aviation, real estate and defence and aerospace.

While India has the potential to build 2,500 scalable businesses over the next 10 years, it would require more than 10,000 start-ups to achieve that number, the study says, given the low probability of entrepreneurial success. These businesses could collectively generate $200 billion in revenues, matching the contribution to GDP of the IT/ITES industry, the study says.

However, this will require strong capital inflows, of up to $55 billion over the next decade, with about half of this in the form of debt. Achieving all this, the study says, would need strong policy support built around five ‘growth-enabling pillars’: infrastructure, regulation, funding, performance incentives and skilling.

To begin with, world-class infrastructure at industryspecific clusters should be set aside for MSMEs in public-private partnership mode, comprising physical infrastructure, knowledge infrastructure (tool rooms), e-platforms, and technology and innovation support. MSMEs should be allocated 25 per cent of the land available in all industrial corridors.

Under regulation, the study recommends a single comprehensive MSME law, applicable in all states and territories and to all MSMEs, within whose ambit would be labour law, the Factories Act and the Land Acquisition Act; single-window approval and  a single application for setting up business; a national procurement policy for public and private enterprises; 100 per cent direct tax breaks on costs incurred in developing SME vendors; a policy to ensure timely payments to MSMEs by large companies; a bankruptcy policy that can help MSMEs exit a business without personal financial loss, with entrepreneurs being given a second chance; and simplification of Companies Act provisions and compliance obligations for MSMEs.

Under funding, the study recommends incentives for investments by high net worth individuals and funds into MSMEs as well as for debt funding in MSMEs, by reducing direct tax rates on income/profits generated by funding the MSME segment. It suggests incentives for incubation funds and early stage funds as well as for banks, to make lending to MSMEs more profitable. It also recommends low-cost credit schemes for startups and micro enterprises. The study also recommends a variety of incentives designed to boost MSME performance (including in exports, import substitution and technology upgrades), and for modernisation of skill development institutions