MINISTER OF THE STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI DINSHA PATEL)
(a) to (e): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) IN RESPECT OF LOK SABHA STARRED QUESTION NO.382
FOR ANSWER ON 07-12-2010
The Government periodically monitors the progress and recent developments made in the Micro, Small
and Medium Enterprises (MSME) Sector in the country through review meetings and All India Census
of the sector. Till date, the office of Development Commissioner MSME (DCMSME) has conducted four
censuses with reference years 1971-72, 1987-88, 2001-02 and 2006-07, respectively. The number of
units, production and employment in registered MSME sector increased from 13.75 lakhs, Rs.203254.62
crore and 61.64 lakhs in 2001-02 to 15.53 lakhs, Rs. 709468.15 crore and 92.04 lakhs respectively in
2006-07, thus registering impressive growth in all the three major parameters.
Some of the common problems faced by the Micro, Small and Medium Enterprises Sector relate to lack of timely
and adequate credit, outdated technology, infrastructure bottlenecks, marketing constraints, delayed payments
of their dues by large units, enhanced competition due to liberalized trade regime, etc. To facilitate the
promotion and development of micro and small enterprises (MSEs) and enhance their competitiveness, the
Government announced a ‘Policy Package for Stepping up Credit to Small and Medium Enterprises’ on 10th
August 2005 which envisages public sector banks to fix their own targets for funding MSMEs in order to
achieve a minimum 20 per cent year-on-year growth in credit to the MSME sector. The Government has also
announced in February 2007 a ‘Package for Promotion of Micro and Small Enterprises’ with an objective to
provide support in areas of credit, technology upgradation, marketing, infrastructure etc. Further, the
Government has enacted the Micro, Small and Medium Enterprises Development Act, 2006 which has come into
force from 2nd October, 2006. The Government is also implementing various schemes/programmes relating to
credit, infrastructural development, technology upgradation, marketing, entrepreneurial/skill development,
etc., for assisting the MSE sector in meeting the challenges. Some of the major schemes/programmes being
implemented are Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Performance and Credit Rating
Scheme, Cluster Development Programme, National Manufacturing Competitiveness Programme, Prime Minister’s
Employment Generation Programme and Market Development Assistance Scheme.
In addition, the Prime Minister`s Task Force constituted to address the issues of the micro, small and
medium enterprises (MSME) sector in its report has made various recommendations in the areas of credit,
taxation, labour issues, infrastructure/technology/skill development, marketing, 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. A Steering Group under the chairmanship of Principal
Secretary to the Prime Minister has been constituted for ensuring timely/speedy implementation of the
recommendations of the Task Force.
The schemes and programmes of the Central Government for promotion of MSME Sector are not state or region
specific. However, to promote the MSME sector in the North Eastern Region of the country including Sikkim,
the Government of India has stipulated that 10% of the outlay in each Plan Scheme of the Office of the
Development Commissioner MSME (DCMSME) would be earmarked for the North Eastern Region. In addition,
there is special dispensation for NER states in schemes such as Credit Guarantee Scheme, Micro and
Small Enterprises - Cluster Development Programme (MSE-CDP), Scheme for Export Promotion, Scheme
for National Exhibition, Prime Minister`s Employment Generation Programme (PMEGP) and Scheme of Fund
for Regeneration of Traditional Industries (SFURTI)
