Presentation abhishek kishore
- 1. Policy recommendations on the Small and Medium Enterprises of India
- 2. A few facts about India Labor Force Composition: Agriculture: 53% Industry: 19% Services: 28% GDP Composition Agriculture: 17% Industry: 18% services: 65% Total GDP: $4.784 trillion GDP per capita: $3900 40.4% of the population in the age group of 25 54 years Second Largest Population of the World : 1.2 billion
- 3. Manufacturing Enterprises Investment in Plant & Machinery Description INR USD($) Micro Enterprises upto Rs. 25Lakhs upto $ 62,500 Small Enterprises above Rs. 25 Lakhs & upto Rs. 5 Crores above $ 62,500 & upto $ 1.25 million above Rs. 5 Crores & upto Rs. 10 Crores above $ 1.25 million & upto $ 2.5 million Definition of Micro Small & Medium Enterprises in India Service Enterprises Investment in Equipment Description INR USD($) Micro Enterprises upto Rs. 10Lakhs upto $ 25,000 Small Enterprises above Rs. 10 Lakhs & upto Rs. 2 Crores above $ 25,000 & upto $ 0.5 million Medium Enterprises above Rs. 2 Crores & upto Rs. 5 Crores above $ 0.5 million & upto $ 1.5 million
- 4. According to the Indian Ministry of Micro Small & Medium Enterprises Micro Small and Medium Enterprises Growth Rate
- 5. 1.2 Billion people Nearly half under 25 years of age Only 16% report owning their businesses The Reality Gallup Report
- 6. Where does India stand? Economy Name Rank Procedures (number) Time (days) Cost (% of income per capita) Paid-in Min. Capital (% of income per capita) New Zealand 1 1 1 0.4 0 Indonesia 166 9 47 22.7 42 Niger 167 9 17 112.8 572.8 Comoros 168 9 20 150 261.9 Ecuador 169 13 56 29.9 4.5 Central African Republic 170 8 22 172.6 444.1 Angola 171 8 68 105.4 24.6 Guatemala 172 12 40 48.1 20.9 India 173 12 27 49.8 140.1 Bolivia 174 15 50 74.1 1.9 Cambodia 175 9 85 100.5 28.5 C担te d'Ivoire 176 10 32 130 184.6 Iraq 177 10 74 81.1 25.2 Suriname 178 13 694 110.9 0.4 West Bank and Gaza 179 11 48 91 206.7 Congo, Rep. 180 11 161 55.3 80.5 Chad 181 9 62 202 289.4 Equatorial Guinea 182 18 135 98.2 11.7 Eritrea 183 13 84 52.3 203.1 Haiti 183 12 105 286.6 21 Djibouti 185 11 37 150.7 383.6 Doing Business Project Ranking data June 2012 http://www.doingbusiness.org/data/exploretopics/starting-a-business
- 7. Lets come to the basics 68.7% of the Indian population lives under $2 a day.
- 8. Lack of reliable and efficient government support structure Lack of access to mentorship and training opportunities Lack of easy access to funds Failure considered to be a taboo Issues hampering the growth of SMES
- 9. Bottlenecks in the existing system Slow growth in the SME sector Fragmented distribution network Low penetration of financial services Lack of power/energy (electricity) Lack of water supply in the farm areas
- 10. Top constraints reported by South Asian benchmark firm in the urban formal sector Electricity wins! Electricity has been reported as the top constraint hampering the growth of businesses
- 11. Current Water Situation in India
- 12. Demand is more Indias current water supply: 740 billion m3 Future Projections for Water
- 13. Low Penetration of Financial Services Only 40% of the total population have bank accounts The lighter the color the lower the bank branches
- 14. Percentage of firms with credit line or loan from a financial institution Low penetration of financial services is visible in the percentages
- 16. Key Issues in India Distribution Network
- 17. Focused policy in the form of a National Support Program for the next ten years to support SMEs in creating nationwide distribution networks The National Support program to be headed by Industry leaders and practioners having the know how and expertise This should be done in mind with an aim to create sustainable infrastructure for future generations to use Recommendations
- 18. Expand the reach of banking sector and the flow of money to the rural area and Tier II III city entrepreneurs by opening up the banking sector for public private partnership Mobile technology should be leveraged to reach the remote areas for financial inclusion Recommendations
- 19. Leverage the abundant natural resources India has in its different states, like wind in the coastal regions, solar in Rajasthan, to supplement its power generation. Reduce T&D losses by laying underground wiring Reliable and continuous supply of power to businesses in the Tier II III using renewable sources will help in the growth of SMEs Recommendations
- 20. The use of established water management techniques such as watershed management, rainwater harvesting, river interlinking and desalination should be expedited An independent regulator should be appointed to control and coordinate implementation efforts Strict legislation should be instituted for the exploitation of groundwater Recommendations
- 21. Focused policy for a complete paradigm shift of the government departments to work as enablers and facilitators to help the public The red-tapism and the shylock image of the government has to be shunned at the earliest. Primary Recommendation
- 22. THANK YOU