Active Blogs | Popular Blogs | Recent Blogs MSME Development in Andhra Pradesh-An Overview
Introduction:
The Micro, Small and Medium Enterprise sector has since emerged as a most vibrant sector in contributing to the socio economic development of country. This sector is contributing 40% of the gross industrial value added, 35 to 40% of exports and generating employment next to agriculture sector. The sector is producing about 8000 products and services. Recognizing this sector for its contribution to the economy Government of India have come out with MSMED Act, 2006. The Act aimed at enhancing the competitiveness of the sector to meet the changing global needs.
The MSME sector has contributed well to the economic growth of Andhra Pradesh too. The sector with 6195 no of units in 1956 has grown to over 1,49,000 in 2007 with an employment generation of over 12 lakhs. It is the 2nd largest contributor to employment generation, next to Agriculture in the state. While the agriculture growth is projected at 4% in the 11th plan, the MSME sector growth is aimed at 10%. It is hoped that the sector will achieve, given the timely facilities. Unlike the public sectors in urban regions the MSME Sector has spread across the state providing considerable rural employment also.
The Governments both at Central and State are providing facilitation services. The Government of AP has come out with a good Industrial Policy 2005-10. Though we are half way, the fruits of the policy are not reaching every industrial unit. It is felt that the implementation of the policy in a vibrant way not only help the industry to grow beyond the targeted figure but also help in generating huge employment, particularly in Rural Sector. The MSME Sector needs the support services in the areas of Technology, Finance and Marketing to make the sector more vibrant.
There is a need to enhance the competitiveness of the sector to meet the changing expectations of the market in the Global scenario. The Governments, both at Central and State are looking to enhance the competitiveness of the sector through Cluster Development Approach. The Cluster Development Approach adopted in the recent past has indeed helped these enterprises by bringing awareness on technology, marketing, quality etc. Some of the clusters in AP were also benefited in the past 3 years.
It is emphasised that the need of the hour is to provide facilitation services to the MSME sector to meet the global competition. The Micro and Small Scale sector of Andhra Pradesh proved its worth by supplying state-of-the art products needed by the Public Sector Enterprises as well as the common needs of the population. It is generating a sizable employment. The industry is spread across the state and contributing considerably to economic development of the Rural Andhra Pradesh. The sector at present need the following support from the Government.
1. Providing Land/Industrial Sheds at an affordable price
2. Technological support.
3. Supply of various raw materials at a competitive price.
4. Marketing support to the MSE products.
5. Financial support.
The National Small Industries Corporation of Government of India is doing this type of services, but the coverage is hardly 10% of the sector
Entrepreneurial Needs:
For an Enterprise Development an Entrepreneur looks for the following aspects.
a. Product selection.
b. Project preparation
c. Identification of process/product technology.
d. Identification of plant & machinery.
e. Identification of market
f. Financial needs.
g. Training.
h. Testing & common facilities.
There is no single agency in the state, which is doing these functions. The District Industries Centre is busy with Registrations, PMRY work and other duties assigned by the Government. These institutions are not in a position to take care of practical problems of the Entrepreneurs. Similarly Technical Organizations like APITCO are also not in a position to meet these requirements. The Commissionerate of Industries is over burdened with various tasks and is not in a position to justify its role for the development of MSME sector. Similarly other developmental agencies have specified individual roles. There is no coordination between these organizations, which will be beneficial to the MSME sector. The entrepreneur is made to run pillar to post and get frustrated due to the procedural delays.
With the implementation of the MSMED Act, 2006 the investment limit has been enhanced with a view to enhance the competitiveness of the Micro, Small & Medium Enterprises in the present Globalised scenario. Now entrepreneurs are looking for product diversifications, new technologies, new areas of market etc.
Need for a new organization:
The MSME sector has been recognized as a vibrant sector due to its contribution to the National Economy. The Governments both at Central and State are formulating policies and programmes for enhancing the competitiveness of the sector to address the global challenges.
The Government of Andhra Pradesh Industrial Policy is considered to be the best policy ever made in the State. However the fruits of this policy are not reaching to the Entrepreneur to their expectations. It is therefore felt that there is a need for an exclusive Nodal Agency to look after various aspects of Industrial Development. The Nodal Agency should have a result oriented Chairman with expert members drawn from Industry Associations, National Laboratories, MSME Development Institutions, Financial Institutions etc.
The functions of the Corporation/Nodal agency shall be as follows:
i. To act as a facilitator for Entrepreneurial Development, Technology Development, Market Development, Financial Assistance and Support.
j. Nodal Agency for implementation of various schemes of Central & State Government like Cluster Development, ISO-9000, Market Development Assistance, Subsidies and Incentives etc.
k. Providing raw material to the needy enterprises.
l. Providing Market Development support - Domestic and International.
m. Providing common facility services at District Level based on the local needs.
n. Providing testing facilities at a competitive price.
o. Providing training facilities.
Rama Krishna Rao A | Hi Snigdha,Yhanks for ypur comment. pl. see my future articles also whenever u get time.
Krish
Posted at: 16, Jun 2009 1:52 AM |
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