(a) the details of the share of the Micro, Small and Medium Enterprises in the manufacturing sector of the country;
(b) the average capital investment in MSMEs in the country;
(c) whether the technological capabilities of the MSMEs are under- developed;
(d) if so, the details thereof; and
(e) the steps taken by the Government for technical upgradation and increasing the share of MSME in manufacturing output?
MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI DINSHA PATEL)
(a): The share of Micro and Small Enterprises in the manufacturing sector of the country is
45.24% for the year 2007-08 (latest available).
(b): As per the `Quick Results : Fourth All India Census of Micro, Small & Medium Enterprises
2006-2007`, the average value of fixed investment in Micro, Small and Medium Enterprises (MSMEs)
for Registered sector is Rs 32.26 lakh per unit.
(c) & (d): The MSMEs are heterogeneous in respect of size and state of technology with
relatively advanced technology being adopted by many Medium enterprises. There is substantial
scope for technology upgradation of MSMEs.
(e): The Ministry has put in place several measures to help MSMEs for technological upgradation
and to increase their share in manufacturing output. The technological upgradation efforts include
implementation of Design Clinic Scheme; Scheme for Promotion of Information and Communication Tools;
Scheme for Marketing Assistance & Technology Upgradation and Scheme for Mini Tool Rooms under PPP
mode, launched under the National Manufacturing Competitive Programme (NMCP) of the Government of
India initiated in 2007-08. Further, the Credit Linked Capital Subsidy Scheme (CLCSS), launched
in 2005, aims at facilitating technology upgradaton by providing 15% upfront capital subsidy to
manufacturing Micro and Small Enterprises on institutional finance (subject to a maximum limit
of Rs. 15 lakh) for induction of well-established and improved technologies in the specified sub-
sectors/products approved under the scheme.
The Central Government implements several other schemes/ programmes to help MSMEs increase
their share in the manufacturing output with focus on infrastructure assistance through cluster
approach, timely availability of credit, entrepreneurship and skill development, capacity
building, marketing assistance etc. The Government has also enacted the Micro, Small and Medium
Enterprises Development (MSMED) Act, 2006 and announced a `Package for Promotion of Micro and
Small Enterprises ` in 2007 to facilitate promotion and development of MSMEs and enhancing their
competitiveness. Further, a Task Force was constituted under the Chairmanship of Principal
Secretary to the Prime Minister in 2009 to address the issues concerning the MSME sector. The
Task Force submitted its report and made several recommendations in the areas of technology
upgradation, credit, marketing, infrastructure development, skill development etc. for providing
an impetus to the growth of the sector. The report has been circulated to the departments/agencies
concerned for time-bound action as laid down in the report.