Samprati Motghare
IIM graduate, Batch of 2014
As per the fourth census of the MSME sector, there are about 361.76 lakh enterprises in the country which provide employment to close to 805.24 lakh people. The MSME sector accounts for 45% of Indian industrial output and 40% of exports. The sector includes about 26.61 lakh women led enterprises (7.4%) and 200.81 lakh rural enterprises comprising about 55.34% of the MSME sector. These statistics clearly depict the integral role the MSME sector plays in India’s economy.
West Bengal: An Ideal leader
West Bengal has the second largest number of MSME enterprises. It has 36.64 lakh enterprises which constitute about 10% of total Indian MSME enterprises. Not surprisingly, it comes second, only after Uttar Pradesh, in providing employment in the MSME sector with 85.78 lakh employees working in this sector. With an output of Rs 78,880 lakh crore it represents an important sector of West Bengal’s economy, and precisely for this reason, the government has taken very many initiatives which have started showing results in this sector. During the last 30 months, 29,735 new industries have been set-up, with an investment of Rs 2,595 crore, This has resulted in employment generation to the tune of 2,02,245 jobs.
Achieving highest credit out-flow in the country
Being one of the pioneers, West Bengal government has introduced a host of incentives in the MSME policy for the period of 2013-18, which includes subsidies in capital investment and interest on term loans, electricity duty waiver, reimbursement of entry tax, refund of central sales tax and stamp duty waiver. One of the biggest hurdles which entrepreneurs face in this sector is the unavailability of funds for expansion or starting up an enterprise. With the steps taken by the government, the MSME sector in West Bengal has seen an unprecedented growth of 105% in credit flow from banks for the period of April-September 2013 - an increase from Rs 4,331 crore to Rs 8,900 crore. While other states such as Karnataka and Gujarat witnessed a growth of 48% and 20%, respectively, this 105% growth in Bengal is unparalleled.
Providing markets
• Rural Craft Hub: For creating markets for products made by traditional artisans, a UNESCO assisted Rural Craft Hub has been set up for 10 different types of rural handicrafts.
• Showcasing Bengal crafts: To bring market-facilities at the doorstep of artisans, an opportunity for manufacturers of handicrafts to participate in different state level, national and international exhibitions and fairs has been created. This has benefitted around 17,400 artisans with a sale of goods worth Rs 86 crore and confirmed orders for supply worth Rs 257 crore.
• Eliminating the middle agencies: ‘Urban Haat’ has either been opened or the in process of opening at various locations (such as Durgapur, Santiniketan, Purulia, Siliguri) across the state. These haat bazaars will enable rural artisans and crafts men to sell their goods directly to urban customers without involving any middle men.
• Brand building: For promotion of traditional Bengali products and handloom the Biswa Bangla Brand has been created for marketing. One of its stores has opened at Netaji Subhas Chandra Bose International Airport, Kolkata.
Providing training and infrastructure
• Preparing employable youth: Special training program to facilitate employment of close to 1,06,000 youth in MSME sector has been initiated across the state.
• Equipping traditional craftsmen with modern knowledge: To empower the artisans and weavers who face stiff competition from national and international markets, a Technology Facilitation Centre has been established with the assistance of Council for Scientific and Industrial Research (CSIR) in Kolkata for MSME.
• Building industrial hubs: Out of the 14 industrial hubs being planned, 3 have already begun operations. About 915 acres of land has been allocated for the plan and 5 of these hubs will be under joint-venture mechanism, drawing an investment of close to Rs 528 crore.
• Silk farming: For promoting sericulture, close to 5,796 acres of land has been allotted, This has resulted in generation of employment for close to 35,200 people.
Parting thought
While the country performed abysmally with a 0.7% growth rate in the industrial sector, constant focus on the MSME sector has been a major factor in West Bengal’s achievement of a 9.58% industrial growth rate in the financial year 2013-14.
IIM graduate, Batch of 2014
As per the fourth census of the MSME sector, there are about 361.76 lakh enterprises in the country which provide employment to close to 805.24 lakh people. The MSME sector accounts for 45% of Indian industrial output and 40% of exports. The sector includes about 26.61 lakh women led enterprises (7.4%) and 200.81 lakh rural enterprises comprising about 55.34% of the MSME sector. These statistics clearly depict the integral role the MSME sector plays in India’s economy.
West Bengal: An Ideal leader
West Bengal has the second largest number of MSME enterprises. It has 36.64 lakh enterprises which constitute about 10% of total Indian MSME enterprises. Not surprisingly, it comes second, only after Uttar Pradesh, in providing employment in the MSME sector with 85.78 lakh employees working in this sector. With an output of Rs 78,880 lakh crore it represents an important sector of West Bengal’s economy, and precisely for this reason, the government has taken very many initiatives which have started showing results in this sector. During the last 30 months, 29,735 new industries have been set-up, with an investment of Rs 2,595 crore, This has resulted in employment generation to the tune of 2,02,245 jobs.
Achieving highest credit out-flow in the country
Being one of the pioneers, West Bengal government has introduced a host of incentives in the MSME policy for the period of 2013-18, which includes subsidies in capital investment and interest on term loans, electricity duty waiver, reimbursement of entry tax, refund of central sales tax and stamp duty waiver. One of the biggest hurdles which entrepreneurs face in this sector is the unavailability of funds for expansion or starting up an enterprise. With the steps taken by the government, the MSME sector in West Bengal has seen an unprecedented growth of 105% in credit flow from banks for the period of April-September 2013 - an increase from Rs 4,331 crore to Rs 8,900 crore. While other states such as Karnataka and Gujarat witnessed a growth of 48% and 20%, respectively, this 105% growth in Bengal is unparalleled.
Providing markets
• Rural Craft Hub: For creating markets for products made by traditional artisans, a UNESCO assisted Rural Craft Hub has been set up for 10 different types of rural handicrafts.
• Showcasing Bengal crafts: To bring market-facilities at the doorstep of artisans, an opportunity for manufacturers of handicrafts to participate in different state level, national and international exhibitions and fairs has been created. This has benefitted around 17,400 artisans with a sale of goods worth Rs 86 crore and confirmed orders for supply worth Rs 257 crore.
• Eliminating the middle agencies: ‘Urban Haat’ has either been opened or the in process of opening at various locations (such as Durgapur, Santiniketan, Purulia, Siliguri) across the state. These haat bazaars will enable rural artisans and crafts men to sell their goods directly to urban customers without involving any middle men.
• Brand building: For promotion of traditional Bengali products and handloom the Biswa Bangla Brand has been created for marketing. One of its stores has opened at Netaji Subhas Chandra Bose International Airport, Kolkata.
Providing training and infrastructure
• Preparing employable youth: Special training program to facilitate employment of close to 1,06,000 youth in MSME sector has been initiated across the state.
• Equipping traditional craftsmen with modern knowledge: To empower the artisans and weavers who face stiff competition from national and international markets, a Technology Facilitation Centre has been established with the assistance of Council for Scientific and Industrial Research (CSIR) in Kolkata for MSME.
• Building industrial hubs: Out of the 14 industrial hubs being planned, 3 have already begun operations. About 915 acres of land has been allocated for the plan and 5 of these hubs will be under joint-venture mechanism, drawing an investment of close to Rs 528 crore.
• Silk farming: For promoting sericulture, close to 5,796 acres of land has been allotted, This has resulted in generation of employment for close to 35,200 people.
Parting thought
While the country performed abysmally with a 0.7% growth rate in the industrial sector, constant focus on the MSME sector has been a major factor in West Bengal’s achievement of a 9.58% industrial growth rate in the financial year 2013-14.
