Inter-ministerial panel to help resolve small units' woes

NEW DELHI: Government will push for removal of hurdles in the growth of micro, small and medium units through an Inter-Ministerial Group formed with the approval of Prime Minister Manmohan Singh. The Inter-Ministerial Group (IMG) was set up to consider the reports of the National Commission for Enterprises in the Unorganised Sector (NCEUS).

The IMG has been set up with the support of the Prime Minister who feels that micro, small and medium enterprises (MSMEs) "have an important role in ensuring that our growth is inclusive and regionally balanced." The IMG is examining the NCEUS reports on financing and creation of a national fund to address the credit needs of the sector which comprises over 10 million units.

Meanwhile, the Ministry of Micro, Small and Medium Enterprises are conducting a fresh census, the fourth in series on small and tiny business outfits to enable the government to formulate new policy initiatives for the sector that accounts for 45 per cent of India's manufacturing.

"The insights gained through this exercise will help us in formulating fresh policy initiatives," Prime Minister Manmohan Singh said last week. As per the third census, there were over one crore small scale units in the country out of which over 13 lakh were registered, while over 91 lakh fell in the unorganised category.

MSMEs contribute about 40 per cent of India's exports. The sector provides employment to over 42 million people, according to official figures.