Wednesday, 20 April 2016

Small scale industries in Indian economy.

In this 21st century, industrialization is at the helm of progress and the world ahead is completely unimaginable without technology. Today, a country’s greatness is not arbitrated by anything but the industrial progress that the country has made and hence to survive in this century, we need to have excessive industrial growth which takes us ahead on the international front while simultaneously strengthen our inner structure by engendering excessive employment for the people of the nation.

To speed up our industrial growth, one factor on which we need to bank upon gravely is our Micro, small and medium enterprise and unfortunately this sector is, till now, the least looked upon.
Going according to the economic statistics, the importance of small and medium sized manufacturing industries (MSMEs) account for a great 45%  of the nation’s GDP (Gross Domestic Product) while the excessively hypocritical corporate sector just contributes one-third (15%) of the MSMEs and this, sans any doubt, proves that our MSMEs demand a great deal of exposure and the much needed attention in order to accentuate our economic growth to achieve the best.

The first and foremost thing is what is a MSME? Enterprises engaged in the manufacture or production, process or preservation of good as specified (1) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 Lakh. (2) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 Lakh but does not exceed Rs. 5 crores; (3) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs. 5 crore but does not exceed Rs. 10 crores.

The number of industries coming under the purview of this sector is a whopping 5.77 crores. They constitute around 90% of the nation’s employment in the decentralized mode of production and service and trading practices. But to a great misfortune, our, this industry which has the capacity to transform the nation’s destiny has been derogatorily underestimated and has never been allowed to open up its wings to their full length. Since our independence period, a lot of focus has been made on the corporate sector while our, this important and crucial x-factor remains hidden and latent just like an oblivious one.

Though various schemes like set up of Khadi and Village Industrices Commission(KVIC) and Prime Minister’s Employment Generation Program (PMEGP) has helped the industries but still, it never got the due attention it deserved and hence today we need to induce a change in the overall structure of our economy development in order to introduce these MSMEs into the mainstream.

The first step towards their inclusion in the main industrial stream would be to kick start reforms so as to delete the red tapes which circumscribe the progress as well as commencement of this industry. Entrepreneurs in this area must be inspired and business as well as relations with the government must the made easy as well as fruitful for this industry.

The second thing to be done is to establish effective dialogue and partnerships between the stakeholders into implementation of the supportive schemes in order to unravel the difficult processes involved in the industry.

The third thing is to implement policies rather than flogging them up. Till now, lots of policies and reforms exist on paper but are not being implemented in actuality. Hence execution of such schemes must be improved in order to remove the discrepancies from the whole procedure.

Now, it’s the high time to induce strategic cross cutting reforms in order to help our industry which gives occupation to around 90% of our youth, otherwise we would never be able to move ahead in terms of economy, progress as well as employment….


JAI HIND, JAI BHARAT
JAI MA BHARTI

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