(a) whether agro based small industries are facing stiff competition and closure of its units with the entry of multi-national companies in products, manufactured in rural areas;
(b) if so, the details thereof; and
(c) the total number of agro-based enterprises being run by the multi-national companies and
the effect of these companies on the micro and small industries; and
(d) the steps taken by the Government to protect these agro-based rural industries from closure?
MINISTER OF THE STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI DINSHA PATEL)
(a) to (c):There were 483 foreign collaborations in agro-based enterprises during the period April 2007
to August 2010. Product-wise (including agro-based products) data relating to growth and closure of small
industries in rural areas is not maintained centrally. However, micro and small enterprises (MSE) sector
(as a whole) has been registering high growth rates (13 percent as against 8.5 percent of industrial sector
as a whole during 2007-08) despite the opening of the economy and increased incidence of competition from
the multinational companies.
(d): For giving thrust to the cottage and rural industries and to enhance their competitiveness,
the Government has operationalised three schemes, i.e. Product Development, Design Intervention
and Packaging Scheme (PRODIP), Scheme of Funds for Regeneration of Traditional Industries (SFURTI),
and Rejuvenation, Modernisation and Technological Upgradation of Coir Industry (REMOT). In addition,
several schemes of the Ministry are also being implemented for the benefit of micro and small enterprises,
including those that are agro based.