Over the past few decades, the Micro, Small and Medium Enterprises sector emerged as a highly vibrant and dynamic part of the Indian economy. It has been not only providing prodigious employment opportunities at comparatively lower capital cost than major industries but also aiding in industrialisation of rural and backward areas. Despite possessing potential to play a vital role in the socioeconomic sphere, it was initially not given its due. However, things seem to be changing and the sector appears to be moving in the right direction.

National Board of M.S.M.E. Member and National Council of Small and Medium Enterprises office-bearer Manguirish Pai Raikar writes for ‘Developing India Mirror’ on the sector’s challenges and future.

There was a time when the M.S.M.E. sphere did not have proper public relations and the appropriate approach. The segment is such that it works on its own steam. Large industries have different sections looked after by various people but in a micro, small or medium enterprise everything is taken care of by a single person.

I was in the M.S.M.E. Board during U.P.A.-II as well. Only a single meeting was conducted annually during U.P.A.-II whereas at least seven gatherings are now taking place in a year. Structural change is being brought about. Issuance of numerous circulars and ordinances gave more teeth to the M.S.M.E.

Earlier, registration took approximately three months while now it’s done in a jiffy. Lakhs of units were catalogued in this one year. I am told that 3.7 lakh units have been listed across the country besides entities catalogued in state departments. In a real sense the inspector raj has come to a halt because we believe that working should be trust-based rather than policing-based. We should be the facilitator rather than being the obstacle.

The Scheme of Funds for Regeneration of Traditional Industries has provided a boost to those who were closing their units owing to dearth of capital. Marketing is indispensable for the sector. We are holding ‘financial clinics’ across the country and have begun developing clusters due to which rates are being streamlined. We are giving openings in many avenues such as the Khadi and Village Industries Commission and the National Small Industries Corporation Ltd. We have endeavoured to ensure that those who were dictating terms sitting in offices go to people so that services are offered at the doorstep, which not only saves time but also conveys additional information regarding schemes etc. Besides cooperation from banks, there is also international collaboration.

In the past, there were umpteen schemes that would remain in files but today officers are going into the field and a profusion of programmes are being conducted. Recently, one was organised in Nagpur and witnessed participation by bodies like I.S.R.O., I.C.A.R. and D.R.D.O., which shared their innovations. Measures have been taken for start- ups. So instead of orders going abroad, the work will be executed within the country.

Through the medium of M.S.M.E., in the vicinity of 20 lakh jobs were created during a period of two years. However, the actual figure could be higher given the fact that 3.5 lakh units have been registered and each has the capacity of providing at least ten jobs.

We started working on ease of doing business. Initially there was friction within the Board but states were eventually convinced that the schemes were beneficial for them as they would get finances that they could utilise. More airports are to be constructed and that will require not only skilled labour but also menial labour.

Taking advantage of global recession, China has been investing abroad including in European countries. It is looking east, which could be either Indonesia or Malaysia. Why should India not venture into this? We can develop our infrastructure properly and ask them to walk in for manufacturing.

The problem of lack of bankroll in the M.S.M.E. sector has been addressed to a considerable extent. The Board has the Finance Secretary as its member besides representation from S.I.D.B.I., N.A.B.A.R.D., Indian Bank etc. The Reserve Bank is also taking steps towards making funds available.

However, the sector still has challenges. While some states succeeded in developing infrastructure, a few are lagging. A fair amount requires to be done on the power front. Moreover, the people’s mindset has to be reoriented.

In coming years, our dependence on imports will reduce. Our outgo is exceedingly high on oil. Next is going to be telecom and that is something we need to arrest.