2. 61 CRORE MSMES IN 2006-07 – REVEALS THE 4TH CENSUS OF MICRO, SMALL AND MEDIUM ENTERPRISES

The Quick results of 4th All India Census of MSMEs (2006-07) have become available. The results reveal that there are a total number of 2.61 crore MSMEs in 2006-07 (as against the current projected figure of 1.3 crore). This includes 0.15 crore registered units and 2.46 crore un-registered units. Of the total, 28% are in manufacturing and 72% in services. These units are largely in Apparel (14.03 %) followed by Food Products and Beverages (13.53%) and Maintenance of Personal and Household goods (9.25%). The MSME sector accounts for employment of 5.97 crore persons, of which, 0.95 crore are in registered units and 5.03 crore in the un-registered units.

The Data on registered units reveals that closure among MSMEs has decreased from the 39% in 2001-02 to 21.64% in 2006-07. Sickness in MSMEs has increased marginally from 13.98% in 2001-02 to 14.47% in 2006-07. Sickness is found to be largely on account of lack of demand and shortage of working capital. The data also reveals that the per unit employment has increased from 4.48 in 2001-02 to 6.24 in 2006-07, per unit fixed investment from Rs.6.68 lakh to Rs.33.78 lakh and per unit gross output from Rs.14.78 lakh to Rs.46.13 lakh in order of priority.

Once the survey of unregistered units is completed, information will become available in respect of gross output, investment, outstanding loans, sickness, exports, etc. This data will also include information on KVIC and Coir units.

This is the first Census after change in definition of the sector and includes, for the first time, medium enterprises and services. For purposes of the Census, an enterprise is defined as a unit with fixed premises and hence does not include hawkers, road side vendors, etc. The 3rd All-India Census of Small Scale Industries with reference year 2001-02 was completed in the year 2003. The 4th All-India Census of MSMEs was launched in May 2008 and its field work was completed in March 2009. This required collection of data for 24 lakh registered units and around 4 lakh unregistered units. The Census was done in cooperation with the State/UT Governments.

Statistics pertaining to the sector play an important role for policy formulation on credit, marketing, technology, entrepreneur development and infrastructure development. The findings of the Census will have utility for planners, administrators, academicians, industrialists, entrepreneurs and all other stakeholders in the promotion and development of MSMEs.

The quick results are based on a census of all registered units conducted by the Office of DC (MSME) and Economic Census of un-registered units conducted by Central Statistical Organisation. The Sample Survey of unregistered units by the Office of DC (MSME) is under way and is expected to be completed shortly. This will provide complete information on the MSME sector.