The Micro, Small and Medium Enterprises (MSMEs) form an
integral part of the Indian economy, comprising of the manufacturing and
services sector broadly. However the outreach of the MSMEs is far more
diversified. MSMEs have presence spanning across almost all the sectors and sub
sectors thereby making it a highly dynamic sector. MSMEs are complementary
to large industries as ancillary units and this sector contributes enormously
to the socio-economic development of the country.
The highly vibrant and dynamic nature of the sector over the
last five decades has been quite appealing to policy makers, government
agencies and research organizations all alike. There are close to 51 million
MSME units in the country that employ about 117 million people across various
sectors, constituting 40% of the workforce.
MSMEs not only are fundamental in providing large employment
opportunities at comparatively lower capital cost than large industries but
also play a crucial role in industrialization of the rural and backward areas.
As a result, MSMEs contribute to reducing regional imbalances, assuring more
equitable distribution of national income and wealth. MSMEs share around 31% to
GDP and 43% to exports.
MSMEs play a pivotal role in exports, employment, skill
development and startups, thereby making the government more proactive than
ever in taking care of this sector. Both the central and state Governments have
been working toward the promotion and development of MSMEs in an effort to
encourage entrepreneurship, employment and livelihood opportunities. Government
is also committed to enhance the competitiveness of MSMEs in the changed
economic scenario.
Within this sector, an important role is played by numerous
clusters and these clusters contribute to a significant portion of the
manufactured exports from India and employment generation. Private and public
sector institutions at the Central, as well as the State levels, are
increasingly undertaking cluster development initiatives. The state of West
Bengal has as many as 450 clusters spanning across various domains potential
sectors for cluster development are leather, zari, gems & jewelry, incense
stick, furniture and handicrafts, readymade garments, plastic and plastic
processing, e-waste processing, jute, bio-waste management, rubber and so on.
The thrust areas from 2018 for MSMEs in the East are agro based sectors, rural
art and craft, and wellness.
Eastern India is hugely innovative but only innovation will
not help. Instead, collaboration of innovators can bring about more benefits in
terms of cluster development as this will lead to obtaining good funding
support. Notably, information block, funding availability and trust factor are
major hindrances associated with the sector. Hence, structured efforts in
e-commerce, integration of central and state governments, simplification in
ease of exporting, and addressing of credit availability issues must be dealt
with.
Indian Chamber of Commerce is committed to work for the
development of the sector through policy advocacy and through leadership by
bringing together Industry personnel, Retailers, Manufacturers, Exporters and
Policy Makers in the MSME space.
