MSMEs see new role in 12th Plan

Given their high capacity for labour absorption, the Micro, Small and Medium Enterprises (MSMEs) in the country are looking to play a more central role in the economy during the Twelfth Five Year Plan period (2012-17).

According to the Institute of Small Enterprises and Development (ISED), a Kochi-based research and consultancy body on small enterprises, the Twelfth Plan is likely to take an “employment-focused” approach to economic policies, following recommendations of the chief ministers of several states at the last National Development Council meeting.

“This implies new role and opportunities for the MSME sector, which has already proven its labour-absorption capacity and resilience against global economic slowdown,” ISED said in a background note. It added that MSMEs cushioned Indian economy from facing a more severe slowdown.

ISED and the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) on Thursday held a seminar on the findings of an ISED report titled ‘India MSME Report 2010.’

The report highlights the under-realised potential of MSMEs in serving the climate-conscious policy agenda and in public-private partnership projects. It also flags the “precarious position regarding manufacturing competitiveness,” and the challenges and opportunities from Free Trade Agreements.

The report advocates image-building for the MSME sector, stregthening institutional and policy support, ensuring level playing field and an end to ad-hocism in MSME policies.