The Micro,small and medium Enterprises of India ie MSME sector contributes 45% to manufacturing and 40% to exports as per recent survey by GOI.More than 66% of MSME’s are situated in 6 major states of India namely Tamil Nadu,Gujarat,Uttar Pradesh,Kerala,Karnataka and Madhya Pardesh.
According to the MSME Ministry,the sector employs more than 101 million people and produces more than 6000 products ranging from traditional items to high -tech.It has proved to be major supllier of goods for mass consumption as well as key producer of high -end products in the electronic equipment and the drugs and pharmaceuticals segments.
MSME’s in India follow cluster approach,which allows sustainable growth.The clusters usually have a common facility centre. The country has around 7,000 clusters in traditional handloom,handicrafts and modern MSME industry segments.Initiatives that individual units may not be able to afford are supported through cluster development programmes.Several exisiting institutions,including service centres,provide assistance such as locating markets,linking technology,facilitating common purchaes,connecting with designers and other service providers.They facilitate subcontracting and training,too.Many industrial zones have adopted the participatory approach to reap the benefits for clustering.For example,Panipat produces 75 % of the total blankets produced in the country;Tripur contributes 80 % to the total cotton hosiery exports,Agra is leader in leather shoe exports and Ludhiana is well known hub for woolen knitwear,sewing machines and bicycle and its parts.
However,MSME Sector continues to face major challenges in terms of Finance,Technology adoption ,Infrastructural Problem,s and mainly awareness about Govt schemes.
But the best of MSME Sector of India is yet to come.