- Micro, small and medium enterprises (MSMEs) are the backbone of the Indian economy, contributing significantly to GDP, exports, manufacturing output and employment. However, they face many challenges including access to finance, technology, and skills. - The Indian government has implemented various reforms to improve the business environment for MSMEs through simplifying regulations, increasing access to credit, and promoting technology adoption. However, more can be done regarding regulatory compliance burden and availability of infrastructure and skills. - Industry associations like CII are advocating for policies that promote a robust MSME sector through increased access to finance, technology, skills development and quality upgrading to enable MSMEs to better leverage new opportunities in global trade.

1. 1policy watch
this IssueInside
Message From the
Director General............ 1
Chandrajit Banerjee,
Director General, CII
Policy Barometer.......... 4
Industry Voices............. 6
Fact File....................... 8
CEO Speak............................................................................................2
January 2017, Volume 5, Issue 5
Policy
M
icro, Small and Medium
Enterprises (MSMEs)
are the backbone of the
Indian economy and play a crucial role
in furthering growth, innovation and
prosperity. They contribute 38 per cent
to India’s GDP, account for a 40 per cent
share of exports and 37 per cent share
of the manufacturing output, bearing
testimony to their salient role in the social
and economic restructuring of the nation.
MSMEs also make a significant contribution
towards employment generation, especially
in the rural areas, by employing almost
120 million across the country.
TheIndianGovernmenthasbeenspearheading
a series of business reforms which have led
to the emergence of India as one of the
fastest growing economies and the preferred
destination for global investments. The
demonetization of high value currency notes
by the Indian Government is a breakthrough
initiative to curb the proliferation of black
money. The Government has also recently
announced major sops to address the credit
paucity for MSMEs by doubling their credit
guarantee cover from Rs 1 crore to Rs 2
crore and enhancing their cash credit limit
from 20 per cent to 25 per cent. With the
launch of the Goods & ServicesTax (GST), the
Indian taxation system is also set to come
at par with the global taxation system. The
focus of the Government has been on the
simplification and digitalization of business
processes and regulations through self-
attestations and certifications, single window
system, online approvals, etc. Indian States
too have gone beyond the one-size-fits-all
strategy and emerged as equal partners in
policy reforms reflecting a paradigm shift in
the development modalities.
The Government must be lauded for
promoting the sustainable growth of MSMEs
through a deluge of initiatives such as the
Zero Effect Zero Defect Scheme to promote
manufacturing excellence among MSMEs
while minimizing the adverse effect on
the environment; the National SC/ST Hub
for building the capacity and enhancing
the market linkages of the underprivileged
sections of society; bill to amend MSME
definitions; the Insolvency and Bankruptcy
Code; labour market reforms, etc. The
Ministry has also launched the MSME
Databank to create an online repository of
MSMEs in India and their various products
and services.
In spite of their significance, these enterprises
face an assortment of challenges and
constraints such as shortage of skilled
manpower, technological obsolescence,
regulatory issues, etc. SMEs in India are
particularly hampered by an inability to
obtain financial capital for growth and
expansion. Banks, on the other hand, face
information asymmetries and lack access
to key data points for assessing the credit
worthiness of MSMEs resulting in an
unreasonable, high-risk perception of these
enterprises. This underscores the need to
develop a robust digital infrastructure
for capturing comprehensive data on the
identification, financial information, credit
information, etc. on MSME borrowers for an
easier assessment of their credit worthiness,
which is one of the focal points for CII’s
policy advocacy initiatives for MSME finance.
The demonetization of high currency notes
will enhance the credit worthiness of MSMEs
by encouraging MSMEs to transition to
digital payments.
For addressing the financial needs of MSMEs,
CII has been successfully operating the CII
Finance Facilitation Centre which partners
with leading banks and other financial
institutions to provide credit facilitation,
advisory and compliance services for MSMEs.
In order to leverage technology to boost
the productivity and global competitiveness
of MSMEs, CII has recently launched a
Technology Facilitation Centre which is
partnering with top technological solution
providers for the technological upgradation
of MSMEs. CII has also established a
Centre for Competitiveness for SMEs
which works towards enhancing the global
competitiveness of SMEs through cluster
development as well as counselling and
mentoring services.
A technologically vibrant and internationally
competitive SME sector should be encouraged
for sustainable contribution to national
income, employment and exports. Based
on the response from CII’s members, many
of the initiatives undertaken by CII have
been able to effect a tangible change in
the MSME ecosystem in the country and CII
will continue to work synergistically with the
Government and actively champion the cause
of a robust MSME sector in India through its
ongoing and upcoming initiatives. n
Chandrajit Banerjee
Director General
Confederation of Indian Industry
Shreekant Somany, Chairman, CII National MSME Council and
Chairman & Managing Director, Somany Ceramics Limited
Milon K Nag, Co-Chairman, CII National MSME Council and
Chairman & Managing Director, K K Nag Private Limited
Focus: Micro, Small and Medium Enterprises

2. 2 policy watch
CEOSpeak
Indian MSMEs are veritably hailed as
the backbone of the Indian economy
with a significant contribution to the
country’s GDP, exports and manufacturing
output. These enterprises are a source
of healthy competition in the economy,
stimulating innovation, economic dynamism,
entrepreneurial spirit and diffusion of skills.
Catalysts for socio-economic transformation
of the country, MSMEs are critical in
meeting the national objective of generating
employment, reducing poverty, and
discouraging rural-urban migration.
Notwithstanding their importance, Indian
MSMEs are assailed by a slew of challenges
and impediments thwarting their growth
and progress as well as dwarfing their
contribution to the economy. Any policy
designed for the MSME sector must work
towards creating an enabling environment
to support the enterprises to prosper and
grow. An enabling business environment
is the most basic pre‑condition for Indian
MSMEs to flourish. This entails a supportive
policy framework for Indian MSMEs as well
as business reforms to improve their ease of
doing business and reduce their regulatory
burden. The CII National MSME Council
interacts with several Government officials
to engage in rigorous policy advocacy
efforts for addressing the concerns of Indian
MSMEs through the SME Policy Dialogue
series. The series focuses on top policy
challenges for SMEs such as ease of doing
business, regulatory requirements, public
procurement, etc and attempts to create a
platform to deliberate on recommendations
to remedy them. Further, simplification and
rationalization of business regulations and
inspections, abolition of the duplication
and multiplicity of documentation and
reporting requirements for compliances,
online portals, single window system, time-
bound dispute resolution mechanisms, self-
certifications, etc. can be crucial in creating
the conditions conducive to the growth of
Indian MSMEs.
In addition, the role of technology cannot
be over emphasized. Technology has not
technological solutions, lack of financial
resources, difficulty in the identification
of the best fit technological solution, low
connectivity and linkages to technological
solution providers, etc. which limit their
potential for technological upgradation. CII’s
recently launched Technology Facilitation
Centre attempts to address the gaping
technology divide facing the Indian MSME
sector by interconnecting these enterprises
with various leading technological solution
providers.
Innovation in product and process capability
to drive cost competitiveness, excellence in
technical and manufacturing capabilities and
robust quality and control systems can assist
in enhancing the global competitiveness of
Indian MSMEs and prepare them for greater
participation in global value chains. Besides
this, there is a need for more efficient
information dissemination within the SME
sector as most SMEs in the country lack
adequate awareness about the schemes and
policies implemented by the Government for
their support and development. In addition,
easier entry and exit norms, a strong public
procurement framework, adequate access to
key resources such as financial resources,
infrastructural facilities, utilities, skilled
manpower, cluster initiatives, factoring
services to tackle delayed payments,
labour market reforms, etc. are some of
the other imperatives to enhance the
competitiveness of Indian MSMEs.
New opportunities are rapidly emerging
owing to the reformative drive by the
Indian Government through a slew of
ease of doing business reforms. The
demonetization of high value currency
notes has underscored the emphasis of the
Indian Government on business integrity
through clean and ethical business practices.
It is imperative that Indian MSMEs are
provided with the requisite support through
synergies between various key stakeholders
in order to enable them to partake in the
rapidly emerging opportunities consequent
to India’s impending ascent as a global
economic superpower. n
A Robust MSME Sector Needed for Driving
the Growth of the Indian Economy
Shreekant Somany
Chairman, CII National MSME Council and
Chairman & Managing Director
Somany Ceramics Limited
just provided the wherewithal to make
globalization possible in a physical and virtual
sense, but it is also the key source of increased
productivity associated with innovation and
growth.Technology needs to be infused within
the MSME sector both through indigenous
development as well as external acquisition.
Specialized and competitive manufacturing
technologies can create significant impact
in areas of Lean Manufacturing, Quality
Management, Design Expertise, Intellectual
Property Rights (IPRs), etc. MSMEs encounter
several technological challenges such as
lack of awareness about the available
Source: Smart7shutterstock.com

3. 3policy watch
CEOSpeak
As an owner of a successful family-
run SME business, how important
do you think SMEs are for the
growth of the Indian economy?
MSMEs are very important for the growth
of the Indian economy. They contribute 37
per cent of the total manufacturing output
of the country, 40 per cent of exports and
employ over 120 million. More importantly,
there is a social dimension that makes
MSMEs essential for the nation. Large sector
companies increase output mainly through
automation and technology whereas MSMEs
do so by employing more people. A vibrant
MSME sector is thus critical to absorb the 12
million young people entering the workforce
each year.
What are the top 5 challenges
that are impeding Indian MSMEs
from leveraging the emerging
opportunities in the aftermath of
the pro-business reforms by the
Indian Government?
Despite the Government’s efforts to improve
the ease of doing business, there are still
too many regulations that an MSME needs
to comply with. Other impediments are
pervasive corruption, poor infrastructure,
finance related issues such as inadequacy of
funding, high interest costs and unrealistic
collateral requirements and inflexible labour
laws.
What are some of the most
important enablers which can create
an enabling policy framework for
Indian MSMEs to thrive?
The most important enabler for Indian
MSMEs to thrive is ease of doing business.
A lot of emphasis is placed on the ease of
starting a business but not enough on the
ease of running an existing business. This
requires a complete overhauling of the
mindset where ensnaring a business in a
web of unnecessary paperwork is mistaken
for the administrative skill of an official.
What is the extent of preparedness
of Indian MSMEs for taking up
customers, suppliers, bankers, lawyers,
consultants and the community at large.
How do you think demonetization
has impacted the Indian MSME
sector given that around 90 per
cent of all Indian MSMEs are
currently informal and 55 per cent
of these enterprises are located
in the under-banked rural parts
of the country? What are some
of your suggestions for MSMEs
to smoothly transition to digital
payments?
There is no doubt that, in the short run,
Industry in general and the MSME sector in
particular have been very adversely affected
by demonetisation. However, if this drive
against black money and the introduction of
GST forces people to move from the informal
economy to the formal economy, it will be
hugely beneficial to the nation. Today, not
paying one’s taxes is considered socially
acceptable in many sections of society. That
attitude must change.
As the Co-Chairman of the CII National
MSMECouncil,pleaseenumeratesome
of the focal areas for the CII National
MSME Council for the development of
Indian MSMEs?
The CII National MSME Council works to
enhance the global competitiveness of
Indian MSMEs by conducting discussions
and policy awareness through initiatives
such as the SME Policy Dialogue series for
addressing areas in which MSMEs face
particular challenges and conferences like
the SME Global Summit which promote
global MSME partnerships. Through our CII
Finance Facilitation Centre, we address the
financial difficulties for MSMEs. We have
also launched the CII Technology Facilitation
Centre this year to address the hurdles
faced by MSMEs in accessing the latest
technologies. n
SME Perspectives, Challenges and Key
Growth Enablers
Milon K Nag
Co-Chairman, CII National MSME Council and
Chairman & Managing Director
K K Nag Private Limited
various global technological
solutions and trends in the
aftermath of Digital India?
MSMEs by and large employ less qualified
peopleandhavelesstechnologyinfrastructure
than larger companies and thus have lower
preparedness to absorb new technological
solutions and trends. As their scale of
operation is smaller, they have a lower
capacity to invest.Technology providers need
to provide customized solutions for the MSME
sector to reduce cost.
How important is quality
upgradation for SMEs to gain
global competitiveness in the wake
of paucity of funds?
Quality upgradation for MSMEs is of
utmost importance to improve their global
competitiveness. Improving the quality of
processes can go a long way in reducing
costs and increasing customer satisfaction
and loyalty.
Based on your experience, how
important is it for MSMEs to develop
strong personal relationships with
their stakeholders given that a
large number of MSMEs across the
globe are family-run enterprises?
It is extremely important for MSMEs to
build strong interpersonal relationships with
various stakeholders. In our company, we
strongly believe in maintaining solid long
term relationships with our own members,

4. 4 policy watch
Policy Barometer
Key CII Recommendations for MSMEs
Area Issues Recommendations
Legal / Regulatory
Framework
Lack of enabling
regulatory framework
and SME Policies
A revised framework must be implemented for MSME definitions based on•
the three criterias of turnover, capital investment and employment
Ease of Doing
Business
Start-ups and Micro enterprises should be allowed a special dispensation from•
various compliances related to taxation, labour laws, etc. for an initial period
of 3 years i.e. the start-up phase, to remove hurdles in their growth
MSMEs should be allowed to provide self-certifications and conduct self-•
attestations to avoid visits by inspectors
The submission of all reports and documents for filing of returns, approvals,•
licences, etc. must be made online through single window system and online
portals
There must be greater flexibility in the deadlines for submissions of forms,•
filing of returns, etc. especially for SMEs
An effective time bound dispute resolution mechanism must be implemented•
with clearly stated course of action
Access to Timely
and Affordable
Finance
Lack of access to
timely and adequate
credit
Dedicated MSME equity funds need to be made available to finance rapid•
growth of MSMEs both in the public as well as in the private space
The current limits under the Credit Guarantee Trust for Micro and Small•
Enterprises (CGTMSE) scheme should be enhanced from the present Rs. 4,000
crore to Rs. 28,000 crore annually over the next 5 years
High risk perception
and lack of
information on credit
worthiness
A digital infrastructure must be developed to make comprehensive data•
available to financial institutions on the identification, financial information,
credit information, etc. on MSME borrowers for an easier assessment of
credit worthiness
High incidence of
Non-Performing
Assets (NPAs)
The classification of NPAs should be 120 days instead of the present 90•
days with a special dispensation for extra 30 days for MSMEs
Debt restructuring norms must be issued by the Reserve Bank of India for•
the restructuring on SME debts
High cost of credit
Cost of money (interest on borrowing) should be limited to a maximum limit•
of base rate + 2.5 per cent
Delayed Payments
There is a need for provisioning of factoring without recourse for tackling•
delayed payments through a factoring vehicle
Implementation of Trade Receivables Discounting System (TReDS) for facilitating•
financing of trade receivables of MSMEs from corporate and other buyers,
including Government departments and Public Sector Undertakings (PSUs)
through multiple financiers

5. 5policy watch
Policy Barometer
Area Issues Recommendations
Infrastructure
Inadequate
infrastructure
facilities
25 per cent of the land available at all Industrial Corridors must be allocated•
to MSMEs at lenient rate slabs and acquiring models
Land bank should be created at State level to facilitate smooth allocation•
of land to start-ups and micro enterprises
Vacant and disused premises in industrial estates must be allocated to new•
or existing enterprises by State Governments
Incubation cells and hubs within clusters can be developed in collaboration•
with academia/regional institutions to provide MSMEs with mentoring and
technology support, and shared Research Development facilities
Public Procurement
Policy for Micro
and Small
Enterprises (MSEs)
Weak Institutional
Framework
A robust monitoring mechanism should be implemented to monitor and•
ensure an effective implementation of the Policy
State level Public Procurement Policies must be launched for expanding the•
coverage of public procurement from MSEs
Lack of Vendor
Development
All Ministries/Departments/CPSUs should be mandated to organize VDPs and•
buyer-seller meets between MSME suppliers and the procuring agencies of
the Government
Technology
Non-availability of
affordable technology
Government should implement cloud technology among the MSME clusters which•
can help MSMEs in sharing knowledge and developing competitiveness
Support should be provided to MSMEs to use different Information and•
Communication Technology (ICT) platforms like Enterprise Resource Planning
(ERP) through enhanced depreciation on Information Technology (IT)
products
Market linkages
Lack of adequate
market linkages for
business development
and expansion
There is a need for effective implementation of various market development•
schemes available including Market Development Assistance (MDA), trade fair
participation, business meets and visits to foreign countries, etc.

6. 6 policy watch
Industry Voices
A sound and stable regulatory environment, supported by good governance, transparency, predictability, and
economic openness is crucial for a positive business and investment climate in any country. The state of a
country’s business and investment climate is a key factor in its ability to develop SMEs. The recent initiative
by the Indian Government to increase online submissions and information has a major potential to improve
ease of doing business for SMEs, while simultaneously promoting transparency in governance. Digitization
of regulatory processes will make it possible for the Indian Government to better monitor and track various
regulatory checks and compliances and reduce the burden to conduct multiple routine inspection visits and
audits.
Ashok Saigal
Chair, Sub-Group on Ease of Doing Business, CII National MSME Council and Managing Director, Frontier Technologies Pvt Ltd
With women constituting nearly 48 per cent of India’s entire population, their labour force participation rate
is abysmally low. Sectors such as nursing, teaching, professional services, agro and cottage industries are
traditionally women centric. The need of the hour is to enhance the participation of women across sectors.
Initiatives such as crèches near industrial townships, incentive to companies employing women, especially in
manufacturing and other predominately male-centric industries, incentive to families educating girl children,
etc. can boost the labour force participation of women. More than anything, an attitudinal shift is required
to instil greater confidence amongst women to step outside the traditional roles and engage in revenue
generating employment opportunities. Enhanced gender parity can be attained in the labour market through
gender sensitization and mainstreaming which will ensure a more equitable distribution of the large scale
employment opportunities generated by the Indian MSME sector. There is a need to create a systematic
framework to connect qualified women with productive employment opportunities across industries.
Dr Alka Kaul
Chair, Sub-Group on Women Empowerment, CII National MSME Council and Director, Horizon Industrial Products Pvt Ltd
Make in India is a potent initiative by the Indian Government to provide a boost to the manufacturing sector
and harness the latent abilities of the MSME sector. Several progressive MSMEs, having deployed state of
the art manufacturing facilities and adopted modern manufacturing excellence practices, were hitherto unable
to fully exploit the domestic market for want of demand. Make in India not only holds promises for the
manufacturing sector to cater to increasing domestic demand but also provides an opportunity for trans-
national organizations to use Indian manufacturing base to manufacture world class goods. Since the inception
of Make in India, many global companies have been taking a keen interest to locate manufacturing in India
and are working to forge alliances with Indian MSMEs to cater to their global supply chain. Flexibility to
adopt globally acclaimed manufacturing practices and a penchant for knowledge based manufacturing and
latent enterprising spirit demonstrate the inherent capability of Indian MSMEs to leverage this initiative. The
key enablers for the growth of these enterprises include lower interest rates on long term debt for capex and
working capital, reduced paperwork and regulatory requirements, flexibility in labour laws, higher incentives
to exporters, and availability of skilled manpower, among others.
Vipin Mullick
Chair, Sub-Group on Manufacturing, CII National MSME Council and Managing Director, Inspros Engineers Pvt Ltd

7. 7policy watch
Industry Voices
Access to finance is one of the biggest challenges for Indian MSMEs. With almost 26 schemes available for
MSMEs, only a handful, such as the CGTMSE and CLCSS address this issue and even these fail to sufficiently
remedy the issue due to limited implementation and endorsement by financial institutions.
The Trade Receivables Discounting System proposed by the Government for MSME bill discounting must be
implemented at the earliest for increased working capital access for MSMEs. Additionally, there is a need to
transition to the globally adhered practice of project-based financing for working capital access for MSMEs.
There is also a need to enact legislation to launch State Level Facilitation Committees with significant authority
and autonomy to act against delayed payments. The excessively stringent lending criteria and the redundant
paper work required by financial institutions is another hurdle towards access to finance of MSMEs. There
is a need to develop innovative financing products for MSMEs such as lease financing or hire purchase
of machinery, buyers’ credit towards technology upgradation, innovation-based RD financing, periodical
technology upgradation funding, channel financing, etc. We need to move away from physical asset-based
collaterals to goodwill-based and project-based financing by institutions. Rating agencies also need to take
into consideration the business potential of MSME projects while evaluating them..
Ashish Agarwal
Chair, Sub-Group on Credit and Finance, CII National MSME Council and Executive Director, Ori Plast Limited
A complicated business environment is one of the most critical challenges faced by Indian businesses in
general and MSMEs in particular. The compliance environment for MSMEs – barring a few exceptions – is as
complex as for large enterprises. Owing their limited means and infrastructure, MSMEs struggle to keep track
of the varied requirements of law with regards to labour, environment, corporate, operational and financial
compliances, etc. In my opinion, MSMEs should invest in a software-based solution, which can provide
them atleast the critical compliances in a database and help them achieve their compliance related goals
without having to spend too much time or money. The Government should view the world of SMEs with
a completely different lens and have a different set of laws and compliances which will fulfil the statutory
goals of the Government without unduly burdening the MSMEs.
Indranil Chaudhary
Co-Chair, Sub-Group on Ease of Doing Business, CII National MSME Council and Chief Executive Officer, Lexplosion Solutions Pvt Ltd
Indian MSMEs contribute around 40 per cent of the overall exports from the country. During the last couple
of years, the Indian Government, through its Administrative wing - Central Board of Excise Customs - have
taken many policy initiatives to enhance MSME exports such as the Authorised Economic Operator Scheme,
Customs Single Window Interface for Facilitating Trade (SWIFT), Digital Signature, 24X7 Customs Clearance
at many Seaports and Airports, provision for deferred duty payments, etc. However, some major policy
initiatives that can significantly propel MSME exports are bringing down the borrowing cost, improved port
infrastructure, timely disbursal of export incentives to MSME exporters, development of globally acceptable
Indian Standards, accreditation of Indian Standards with Globally Recognized Standards, accreditation of
Indian Certification Agencies and Test Laboratories with global regulatory bodies, etc. MSMEs too can adopt
several best practises to enhance their global competitiveness. These include globally recognized HR practices,
investment in innovation, emphasis on quality standards, on-time delivery, efficient supply chain management,
efficient compliance management and updated business documentation, etc.
K Nandakumar
Chair, Sub-Group on Trade Export Promotion, CII National MSME Council and
Chairman Managing Director, Chemtrols Industries Limited

8. 8 policy watch
Factfile
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No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying,
recording or otherwise), in part or full in any manner whatsoever, or translated into any language, without the prior written permission of the copyright owner. CII has made every
effort to ensure the accuracy of the information and material presented in this document. Nonetheless, all information, estimates and opinions contained in this publication are
subject to change without notice, and do not constitute professional advice in any manner. Neither CII nor any of its office bearers or analysts or employees accept or assume any
responsibility or liability in respect of the information provided herein. However, any discrepancy, error, etc. found in this publication may please be brought to the notice of CII for
appropriate correction.
Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi 110003, India
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For suggestions please contact Priya Shirali, Corporate Communications at priya.shirali@cii.in
Total Working Enterprises and Employment
Annual Growth Rate of the MSME Sector
Source: MSME Annual Report 2015-16, Ministry of MSME
Policy Watch: MSME FactFile
Source: MSME Annual Report 2015-16, Ministry of MSME Source: MSME Annual Report 2015-16, Ministry of MSME
Source: MSME Annual Report 2015-16, Ministry of MSME
Source: MSME Annual Report 2015-16, Ministry of MSME
7.5 7.5 7.4 7.3 7.0
28.6 28.6 29.3 30.7 30.5
2008-09 2009-10 2010-11 2011-12 2012-13
Manufacturing Services
MSME Contribution to GDP (%)
Rural
55%
Urban
45%
Geographical Distribution of
MSMEs in India (%)
11.8%
10.5%
11.8%
18.5%
14.3%
12.4%
17.2%
18.7%
0.0%
5.0%
10.0%
15.0%
20.0%
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Annual Growth Rate of the MSME Sector (%)
36.2 37.7 39.4 41.1 42.9 44.8 44.8 48.8 51.1
80.5 84.2 88.1 92.2 96.5 101.2 106.1 111.4
117.1
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Total Working Enterprises Employment
Total Working Units and Employment
Inmillions
Source: MSME Annual Report 2015-16, Ministry of MSME
Policy Watch: MSME FactFile
Source: MSME Annual Report 2015-16, Ministry of MSME Source: MSME Annual Report 2015-16, Ministry of MSME
Source: MSME Annual Report 2015-16, Ministry of MSME
Source: MSME Annual Report 2015-16, Ministry of MSME
7.5 7.5 7.4 7.3 7.0
28.6 28.6 29.3 30.7 30.5
2008-09 2009-10 2010-11 2011-12 2012-13
Manufacturing Services
MSME Contribution to GDP (%)
Rural
55%
Urban
45%
Geographical Distribution of
MSMEs in India (%)
11.8%
10.5%
11.8%
18.5%
14.3%
12.4%
17.2%
18.7%
0.0%
5.0%
10.0%
15.0%
20.0%
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Annual Growth Rate of the MSME Sector (%)
36.2 37.7 39.4 41.1 42.9 44.8 44.8 48.8 51.1
80.5 84.2 88.1 92.2 96.5 101.2 106.1 111.4
117.1
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Total Working Enterprises Employment
Total Working Units and Employment
Inmillions
Geographical Distribution of
MSMEs in India Nature of Activity of MSMEs in India
Policy Watch: MSME FactFile
Source: MSME Annual Report 2015-16, Ministry of MSME Source: MSME Annual Report 2015-16, Ministry of MSME
Source: MSME Annual Report 2015-16, Ministry of MSME
Source: MSME Annual Report 2015-16, Ministry of MSME
7.5 7.5 7.4 7.3 7.0
28.6 28.6 29.3 30.7 30.5
2008-09 2009-10 2010-11 2011-12 2012-13
Manufacturing Services
MSME Contribution to GDP (%)
Rural
55%
Urban
45%
Geographical Distribution of
MSMEs in India (%)
11.8%
10.5%
11.8%
18.5%
14.3%
12.4%
17.2%
18.7%
0.0%
5.0%
10.0%
15.0%
20.0%
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Annual Growth Rate of the MSME Sector (%)
36.2 37.7 39.4 41.1 42.9 44.8 44.8 48.8 51.1
80.5 84.2 88.1 92.2 96.5 101.2 106.1 111.4
117.1
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Total Working Enterprises Employment
Total Working Units and Employment
Inmillions
Source: MSME Annual Report 2015-16, Ministry of MSME Source: MSME Annual Report 2015-16, Ministry of MSME
68%
32%
Manufacturing Services
Manufacturing Services
Manufacturing Services