12th Plan to focus on MSMEs

The 12th Plan will focus on ways to improve flow of fund to the micro, small and medium enterprises (MSMEs) sector which accounts for 8% of the Gross Domestic Product (GDP).

The 12th Plan (2012-17), sources said, would try to enhance access of MSMEs to "equity capital and alternative sources of capital like angel funds/risks capital".

The sector contributes 8% of the country’s GDP, 45% of the manufactured output and 40% of our exports.

The issues concerning the MSME are being discussed by the sub-groups which were formed by the Working Group to recommend steps for accelerating the growth of the sector.

Besides other things, sources said, the schemes for encouraging skill development through the Public Private Partnership (PPP) mode could also be incorporated in the next Plan.

The 12th Plan will also take on board the recommendations of the Prime Minister's Task Force on Technology and Innovation.

The Task Force report has made various suggestions which include increasing fund availability, technology upgradation and skill development.

The Working Group, which is chaired by MSME secretary Uday Kumar Verma, is likely to submit its report to the Steering Committee of the Planning Commission by the end of September.

Of the 26 million MSMEs, which employ 60 million people, only six% are registered while the rest come under the unorganised sector.