Worldwide,
the micro and small enterprises (MSEs) have been accepted as the engine
of economic growth and for promoting equitable development. The MSEs
constitute over 90% of total enterprises in most of the economies and
are credited with generating the highest rates of employment growth and
account for a major share of industrial production and exports. In
India too, the MSEs play a pivotal role in the overall industrial
economy of the country. It is estimated that in terms of value, the
sector accounts for about 39% of the manufacturing output and around
33% of the total export of the country. Further, in recent years
the MSE sector has consistently registered higher growth rate compared
to the overall industrial sector. The major advantage of the sector is
its employment potential at low capital cost. As per available
statistics, this sector employs an estimated 31 million persons spread
over 12.8 million enterprises and the labour intensity in the MSE
sector is estimated to be almost 4 times higher than the large
enterprises.
The
President under Notification dated 9th May 2007 has amended the
Government of India (Allocation of Business) Rules, 1961. Pursuant to
this amendment, Ministry of Agro and Rural Industries (Krishi Evam
Gramin Udyog Mantralaya) and Ministry of Small Scale Industries (Laghu
Udyog Mantralaya) have been merged into a single Ministry,
namely, “MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SUKSHMA LAGHU
AUR MADHYAM UDYAM MANTRALAYA)” |
