India Development News & Foreign Investment Opportunities

MSMEs has Rs.2trn opportunities in 2018-19

Sector urged to adopt ZED

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Sector urged to adopt ZED

 

 

Micro, small and medium enterprises (MSMEs) should adopt government programmes such as ‘Zero Defect Zero Effect’ to capture an estimated opportunities worth Rs.2 trillion in 2018-19, said Vijay Kumar, Director, MSME Development Institute, a government of India entity.

Indian MSEMEs provide the much-needed growth possibilities for the country contributing their part to the ‘Start up India’ and ‘Make in India’ initiatives.

The sector employs about 106 million (40% of India’s workforce, next only to the agricultural sector) and manufactures more than 6,000 products. It currently contributes around 6.11% of India’s manufacturing GDP and 24.63% of service sector GDP.

“In the last two years, micro & small units have flourished because of Public Procurement Order that ensures 20% sourcing from MSEs. Besides, a sub-target of 4% has been earmarked for procurement from MSEs owned by SC/ST entrepreneurs,” he said.

“Huge volume of market is available for micro & small enterprises as PSUs are seeking to increase sourcing from these units. In 2018-19, Rs.2 lakh crore of market will be available to MSMEs,” Kumar said.

He also focused on the importance of Zero Defect Zero Effect (ZED) programme. ZED rating certification aims to drive manufacturing with adoption of ‘zero defect’ production processes without impacting the environment (‘zero effect’).

“By adopting ZED, MSMEs can reduce wastage and increase productivity. The ZED certified units get preference in purchase by Central and State PSUs. Besides, India’s ZED certification is recognised in more than 100 countries,” said Kumar. fiinews.com

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