Registered MSMEs up by 19% in FY12

The new MSMEs have not only increased employment substantially, but also the gross output

The total number of registered micro, small and medium enterprises (MSMEs) rose by 19 per cent in 2011-12, according to the ministry of MSME's annual report for 2012-13. The gross output of these enterprises increased by around seven per cent in 2011-12, and rural areas continue to be the largest contributor in terms of both employment and output.

The annual report shows that there has been a consistent rate of growth of more than 10 per cent in the number of registered MSMEs every year until 2010-11, while in 2011-12 the growth rate surged to 19 per cent, which is around twice of the growth rate recorded for previous years.

The number of registered MSMEs (see table) in district industries centres across the country increased from 1.74 lakh in 2007-08 to 1.93 lakh in 2008-09, 2.14 lakh in 2009-10, 2.37 lakh in 2010-11 and 2.82 lakh in 2011-12. The major chunk of enterprises is beyond the urban centres, and they are mainly focused on providing services.

The new MSMEs have not only increased the employment substantially, but also the gross output. In 2001-02 the total number of working enterprises was 105.21 lakh, and this had more than quadrupled to 447.73 lakh in 2011-12. The number of people employed also quadrupled - from 249.33 lakh in 2001-02 to 1012.59 lakh in 2011-12.

The market value of fixed assets shot up from Rs 1,54,349 crore in 2001-02 to Rs 11,76,939.36 crore in 2011-12, while the gross output shot up from Rs 2,82,270 crore in 2001-02 to Rs 18,34,332.05 crore in 2011-12.

These enterprises manufacture over 6,000 products ranging from traditional to high-tech items. Significantly, the rural areas accounted for 55.34 per cent of the total units, which are largely proprietary enterprises.

The report stated that 94.41 per cent of the enterprises were proprietary enterprises, about 1.18 per cent were partnerships, 0.14 per cent are private and the rest are co-operatives/trusts and others.

The ministry said some recent measures that have helped the industry and increased the incidence of registration include the Rajiv Gandhi Udyami Mitra Yojana, through which handholding support and assistance was given, and the public procurement policy for goods produced and services rendered by MSEs.

The ten leading states in terms of number of enterprises are Uttar Pradesh (44.03 lakh units), West Bengal (36.64 lakh), Tamil Nadu (33.13 lakh), Maharashtra (30.63 lakh), Andhra Pradesh (25.96 lakh), Kerala (22.13 lakh), Gujarat (21.78 lakh), Karnataka (20.19 lakh), Madhya Pradesh (19.33 lakh) and Rajasthan (16.64 lakh).

The ten leading states in terms of employment are Uttar Pradesh (92.36 lakh employees), West Bengal (85.78 lakh), Tamil Nadu (80.98 lakh), Andhra Pradesh (70.69 lakh), Maharastra (70.04 lakh), Kerala (49.62 lakh), Gujarat (47.73 lakh), Karnataka (46.72 lakh), Madhya Pradesh (33.66 lakh) and Odhisa (33.24 lakh).

Rural areas with 200.19 lakh working enterprises accounted for 55.34 per cent of the total number of working enterprises in the MSME sector, whereas urban areas housed 161.57 lakh working enterprises (or 44.66 per cent of the total).

A majority of the enterprises are providers of services - constituted 68.21 per cent of the total, while the remaining 31.79 per cent are in manufacturing.