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The MSME sector is the second-largest contributor to India’s GDP and the government wants to develop it further by raising Rs1,000 crore for its development
The Indian government is planning to raise around Rs1,000 crore for development of micro, small and medium enterprises (MSMEs) under the 11th five-year plan.
Speaking at the second World SME Conference, Dinsha Patel, minister of state for MSME said, “In the Indian economy, the MSME sector is the second-largest contributor in terms of gross domestic product (GDP) after the agriculture sector.
It provides almost 80%-90% of employment to the Indian population and has 45% share in production and 35% in exports." To develop the MSME sector, the government is planning to raise Rs1,000 crore, he added.
In a panel discussion titled 'IT Solutions for MSMEs-Lip Service or Real Solutions', industry experts suggested that to serve the MSME sector profitably, there is a need to understand the market, provide indigenous and simple solutions that build confidence among the MSME community, about the benefits of IT.
Rajeev Karwal, founder-director, Milagrow Business and Management Solutions said, "The SME sector, which contributes almost 40-50% to economic activity, has been an underserved, manipulated and much-abused sector because of a variety of reasons. Because of misplaced regulatory and business compulsions, the sector never got its due. It is my dream that these hidden jewels of the Indian industry shine brighter than ever now, especially when the Indian market place is growing."
Speaking on the hotly-debated topic of growth titled ‘East or West, Growth for SMEs is the Real Test’, management guru Dr Jagdish Sheth said, "Entrepreneurship has no barriers, you can be illiterate but yet innovative.” Dr Sheth also highlighted some of the key reasons behind the lack of attention to Indian MSMEs and laid out a very vital roadmap for the development of MSMEs in India.
A recent ASSOCHAM (Associated Chambers of Commerce and Industry of India) study said that small and medium enterprises (SMEs) are expected to contribute 22% to India's GDP by 2012, up from about 17% currently.
The survey also noted that “(The) SME sector contributes 40% to the country's exports and that this share would increase to over 44% with the help of modernised technology.”