 "Pro-MSME schemes to boost potential of North East region")
Micro, small and medium enterprises (MSMEs) in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura - the 'seven sisters' that make up the North Eastern Region (NER) - stand to benefit from central government initiatives to encourage entrepreneurship, innovation and sustained development in the sector.
CRISIL's analysis of over 500 MSMEs in these states shows they face major challenges to growth in the form of lack of access to technology, concentrated operations and weak infrastructure. About 47 per cent have concentrated operations (either in product, geography or customers), and about 30 per cent have weak infrastructure. The units face challenges in accessing skilled labour, as only 45 per cent of the total employees are permanent. About 48 per cent of these are operating in the manufacturing sector, of which 95 per cent have semi-automated or manual technology.
CRISIL believes that various initiatives launched by the central government in the NE region for skill development, entrepreneurship development, technology and incubation, and venture funds for start-ups will accelerate entrepreneurship and boost the availability of skilled workers and development of MSMEs in this region to make them competitive.
Note: This fortnightly tracker presents to our readers insights on MSMEs, a key element of the Indian economy. CRISIL has rated over 91,000 MSMEs in India.
