 "MSME Min worried over cheap imports from China")
The phenomenon has not only led to flooding of the domestic market by Chinese goods, but closure and sickness amongst indigenous industries.
Seized of the matter, the union MSME ministry is now keen to turn the tide in favour of domestic manufacturers through policy interventions and incentives.
More From This Section
“It is a big challenge,” union MSME minister Kalraj Mishra told Business Standard here on Monday while acknowledging that Chinese goods enjoyed cost advantage vis-à-vis Indian products due to lower production costs.
“Due to cheap imports from China, the markets of our products are shrinking and we must find solutions to help domestic industries,” he added.
Mishra said he was taking stock of the ground situation and holding meeting with officials and industry representatives to get feedback for taking corrective measures.
He is slated to hold a meeting with industry representatives on July 3.
There are about 36 million MSMEs in India, of which 90 per cent are estimated to be operating in unorganised sector. Majority of such unregistered units operate from residential premises as one-man show.
MSMEs together employ 80 million people, contribute 8 per cent to India’s gross domestic product (GDP), 45 per cent to industrial production and 40 per cent to exports.
“I am confident that the might of India’s MSME is still to be realised and their contribution to economy is negligible compared to their potential,” Mishra underlined.
Meanwhile, MSME ministry is planning to set up skill development centres, incubation centres, tool rooms for training of workmen and inculcating entrepreneurship amongst the unemployed and educated youth. The government plans to up the number of incubation centres from 56 to 500 in the country, so as to reach every district. Besides, the number of tool rooms would be increased up to 33 from 18 at present.
“We would rope in private partners as well to boost the MSME sector,” Mishra added.