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INDIA'S MICRO, SMALL AND MEDIUM ENTERPRISE (MSME) SECTOR EVER GROWS UP? COMPANIES HAVE VC INDEPENDENT BUSINESS MODELS

 
 
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INDIA'S MICRO, SMALL AND MEDIUM ENTERPRISE (MSME) SECTOR EVER GROWS UP? COMPANIES HAVE VC INDEPENDENT BUSINESS MODELS
by System Administrator - Saturday, 22 April 2017, 11:39 PM
 

By: M.S.Yatnatti Editor and Video Journalist Bengaluru : Units that begin their lives in the Micro, Small and Medium Enterprise (MSME) sector must want to grow up. At the same time, take a look at this paradox. In terms of the number of units, it is estimated that 18.7% more have been added to the MSME sector between 2014-15 and 2015-16. The number of employees in them too has shot up from 81 million to 117 million between 2006-07 to 2015-16. But as unregistered micro units are roughly 13 times the number of registered ones, the average employment per enterprise is just about three persons, maybe lower. A higher admission rate, all right, but a persistently poor pass out grade! Obviously nobody wants to leave school, or come out of their baby clothes.Instead of numbers rising in the higher classes, such as in the medium and small sector component, it is the micro industries that keep burgeoning and yet contributing so little to the economy. In addition, there is hardly any transit from unregistered to registered units either. Nor is it that they are falling sick routinely as the incidence of ailing units in MSMEs came down quite impressively in the last decade or so.While the nation is struggling to hone the skills of young Indian to generate employment opportunities, Karnataka seems to have run out of ideas to develop the skills of citizens and is sitting on central government funds. Under the renamed scheme of Deendayal Antyodaya Yojana ­­ National Urban Livelihood Mission (DAY-NULM), the ministry of housing and urban poverty alleviation noted that Karnataka has Rs 38.71 crore of unspent balance in it accounts as of April 1, 2016. Further, the state has also not provided its utilization certificates (UC) for the expenditure under the scheme. Result: A sizeable amount of Rs 67.35 crore has been frozen by the Centre.The Centre, while responding to a question raised by Rajya Sabha MP K C Ramamurthy on the NULM project on April 6 in Parliament had said: "As per the monthly progress report provisional utilization certificate submitted by Karnataka, an amount of Rs.3,871.73 lakh (Rs 38.71 crore) was available with the state as unspent balance on April 1, 2016.The state couldn't fully utilize the balance and, as per instructions from the ministry of finance, no funds could be released to the state to avoid parking of funds."