Small and Medium Enterprises and Inclusive Growth in the Globalisation Era

Abstract

Micro, Small and Medium Enterprise (MSME) sector has been undergoing a metamorphosis in the era of globalisation for over a decade and a half. Many developments of relevance to SMEs (Small and Medium Enterprises) have taken place within the country and internationally. Globalisation resulting in fierce competition in various product lines has forced the SME sector to adopt strategies in tune with the global trends. A number of programmes of cluster-specific and firm-specific approaches are being pursued by all India organisations with a wide network of institutions associated with various functions supporting the SME sector at different levels. The paper reviews the progress of MSME sector from 2000-01 in particular, and discusses a few key approaches adopted in the sector. These include the following: Eleventh and Twelfth Plan approaches for inclusive growth, MSMED Act 2006, credit flow to MSMEs, policy of de-reservation, greater equity participation, cluster development approach (CDA), National Manufacturing Competitiveness Programme (NMCP), Central Public Procurement Policy (CPPP) and Defence Production Policy, Development of employment-intensive enterprises, employment generation programmes for micro enterprises promotion, and training and entrepreneurship development. Conclusion and Suggestions are offered towards the end of the paper. The four appendices given include websites of MSME and related organisations, and particulars of web portals of National Small Industries Corporation (NSIC), and call centres set up by NSIC and Union Ministry of MSME.