Govt increases budgetary support to MSMEs to compete with China
Updated: Mar 26, 2013 03:43:02pm
New Delhi, Mar 26, (KNN) The government has approved budgetary support of Rs 24,124 crore to Micro Small and Medium Enterprises in 12th plan (2012-17), a significant increase from previous plan allocation, amidst stiff competition faced by the sector from China.
“The Gross Budgetary Support (GBS) for the 12th Plan (2012-17) of the Ministry of MSME has been approved at Rs 24,124 crore by the Planning Commission. These schemes and programmes help MSMEs grow, increase their competitiveness and consequently exports”, an official said.
The budgetary support during 11th Five Year Plan was Rs. 9,175 crore which has been raised by 162.93 per cent during the current Plan.
For export promotion in particular, the ministry is implementing Market Development Assistance Scheme as also various other export promotion schemes through its autonomous bodies, namely the National Small Industries Corporation (NSIC), Khadi and Village Industries Corporation (KVIC) and Coir Board.
Imports from China grew at a higher rate than their respective imports from all countries combined during 2008-09 to 2011-12 according to an official statement.
As these eight product groups accounted for 54 per cent of India’s total imports from China in 2011-12, a significant proportion of Indian Small Scale Industries (SSIs) are seen to be facing greater competition from China as compared to the rest of the world.
These product groups pertain to Electrical and Electronics; Mechanical and Metallurgical products; Chemical and Glass and Ceramics-based products.
Besides, MSMEs in the country are also facing challenges like inadequate exposure to international market and low capital base. (KNN)
“The Gross Budgetary Support (GBS) for the 12th Plan (2012-17) of the Ministry of MSME has been approved at Rs 24,124 crore by the Planning Commission. These schemes and programmes help MSMEs grow, increase their competitiveness and consequently exports”, an official said.
The budgetary support during 11th Five Year Plan was Rs. 9,175 crore which has been raised by 162.93 per cent during the current Plan.
For export promotion in particular, the ministry is implementing Market Development Assistance Scheme as also various other export promotion schemes through its autonomous bodies, namely the National Small Industries Corporation (NSIC), Khadi and Village Industries Corporation (KVIC) and Coir Board.
Imports from China grew at a higher rate than their respective imports from all countries combined during 2008-09 to 2011-12 according to an official statement.
As these eight product groups accounted for 54 per cent of India’s total imports from China in 2011-12, a significant proportion of Indian Small Scale Industries (SSIs) are seen to be facing greater competition from China as compared to the rest of the world.
These product groups pertain to Electrical and Electronics; Mechanical and Metallurgical products; Chemical and Glass and Ceramics-based products.
Besides, MSMEs in the country are also facing challenges like inadequate exposure to international market and low capital base. (KNN)
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