A large number of unregistered Micro, Small and Medium Enterprises (MSME) makes it difficult for government to frame meaningful policies for the sector.
"A large chunk of MSME sector is unregistered and remains segregated. This makes it difficult for the government to frame meaningful policies to cater to this sector with diverse verticals," Madhav Lal, Secretary, Ministry of Micro, Small and Medium Enterprises (MSME) said at a Ficci event.
MSME contribute nearly 8 per cent of the country's GDP, 45 per cent of the manufacturing output and 40 per cent of the exports. They provide the largest share of employment after agriculture.
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"There is a need to create an ecosystem where entry, growth and exit from the MSME sector are incentivised," said Ajay Shankar, Member Secretary, National Manufacturing Competitiveness Council.
Indian industrial sector does not look at labour or workers as an asset and partners in growth, he said, adding, this has emerged as the biggest weakness of the Indian industry.
Technology and machines across the world are similar, the real success and competitiveness are achieved by the skill and quality of a worker. Hence, it is imperative to increase the productivity of Indian workers and improve their quality of work, he added.
The government's move to amend Factories Act, labour law reforms and encouragement to e-governance are some of the initiatives, which will go a long way in boosting the MSME sector, he added.
