Jarkiholi promises all help for growth of the sector
Karnataka plans to formulate aseparate policy for Micro Small and Medium Enterprises (MSME) sector.
Addressing the Confederation of Indian Industry’s (CII) ‘MSME Conference 2015’ here today, State Minister for Small Scale Industries Satish Lakshmanrao Jarkiholi said the MSME sector could not be ignored as it employed over 30 lakh people and is a major contributor to the growth of the State.
‘Systemic failure’
“The issues faced by MSME sector primarily stem from the fact that MSME policies followed now are archaic and funds allocated are not utilised efficiently as it is not percolating down the system,” he added.
The need of the hour is a comprehensive policy for MSME sector in the State and the State government is working to introduce such a policy which will bring development and growth for the sector.
“However, the key issue here is proper implementation of the policy to the sector,” he added.
MSME meet
CII’s MSME Conference 2015 deliberated on key issues and challenges faced by the sector, availability of finance and credit, globalisation and implementation of IT. Over 200 delegates attended the conference.
Calling MSMEs the engines that sustain growth for long-term development in the country, Ashok Rao, Chair, MSME Panel, CII Southern Region, said that the sector normally accounts for around 85-90 per cent of all business units, employs 35-45 per cent of the workforce and contributes 30-40 per cent of the gross value added in most nations in the world.
In India, MSMEs account for more than 90 per cent of all industrial units their contribution of around 8 per cent of the nation’s GDP, 40 per cent of the manufacturing output and 35 per cent of overall exports.
Govt help
SN Rangaprasad, Director, MSME Development Institute, said the government had introduced several schemes to help Indian MSMEs compete in the global markets and overcome challenges posed by the entry of multinationals in domestic markets.
The government is intent on expanding the coverage of various schemes and ensuring timely implementation for enhanced benefits for the MSME sector.
M Prabhu, Additional Director, MSME, Government of Karnataka, said the government had announced the setting up of an online clearance system to ease the process for registration of new MSMEs. The government has identified a few sectors like aerospace, automobiles, agro and food processing, semi-conductor etc. and adopted specific policies to cater to the needs of the investors in these particular sectors.
According to D R Subramanyam, Convener, CII Karnataka MSME Panel, Karnataka is home to about 6 lakh small-scale units and nearly 75 per cent of them are located in and around Bengaluru, Mysuru, Mangaluru, Belgavi, Hubblli and Shimovagga. Business Line
