MSMEs do brisk business in meltdown season

The government has claimed that the Micro,Small and Medium Enterprises (MSMEs) in Gujarat have been witnessing a remarkable growth since August last year,despite the meltdown.

Written by Express News Service | Ahmedabad | Published:March 26, 2009 12:58 am

The government has claimed that the Micro,Small and Medium Enterprises (MSMEs) in Gujarat have been witnessing a remarkable growth since August last year,despite the meltdown.

The Gujarat office of the National Small Industries Corporation (NSIC),the nodal agency for MSME policy implementation under the Ministry of MSME,Government of India,has said that nearly 70 per cent of the

339,000 MSMEs in the state have reported higher volumes of business and even broadening of their customer base. These MSMEs are engaged in manufacturing of automobile parts,electrical engineering goods,machinery and metal products.

P K Jha,Regional Head,NSIC,Gujarat,who will submit these findings in the annual general meeting of the ministry in early April,said there are three main indicators pointing towards this. Firstly,the ‘Single Point Registration for Government Purchase’ under NSIC,which is essential for the MSMEs to enjoy various subsidies,exemptions and benefits provided by the Centre,have risen by nearly 35 per cent in the state in the last six months. Similar increase has also been witnessed in the issue of licences by the NSIC to the MSMEs for marketing their products. Furthermore,the ‘Mortality Rate’ of the MSMEs (the ratio of industries that shut down within a year or two of their start) has declined from 20 per cent to less than 13 per cent.

NSIC officials added that because of the slowdown,large-scale domestic industries are either shutting down or outsourcing their orders to smaller industries. Also,the imports have substantially declined. So,to fill up the demand vacuum in the domestic market,the MSMEs,which have successfully diversified as per the market requirements,are pitching in.

For all the latest Cities News, download Indian Express App

    Express Adda