New Delhi, May 16 (KNN) After a decade of consultation, the Ministry of MSME has now geared up to launch a separate MSME Index of Industrial Production (IIP).
The much hyped IIP released every month indicate the growth rate of the various industrial sectors on a year on year basis and taken to be a diagnostic report on the status of the industries of India.
But it may not be known to many that the IIP not at all capture the production data of the MSMEs, which are mainly in the unorganised sector and operating without Factory Licences, the trigger for capturing data for IIP.
The fact that according to the Government projections MSMEs produce nearly half of the industrial output, also shows how truncated the IIP data are.
How on the basis of production data on only half of the productive sector, the performance of the entire sector could be projected is a moot question.
However, it is a matter of rejoice for the entire MSME sector that the Ministry of MSME ha started rolling the ball for imminent launching of MSME IIP data.
Knn has learnt that recently the ministry held consultation with Industry representatives to develop a fool proof data collection system from MSMEs.
Industry veterans may remember that long back the Ministry used to collect ‘Production Index (PI)’ data from selected MSMEs (SSIs) which were taken into account in determining the IIP.
However, due to various compatibility problems, the PI system was discontinued a decade back.
Since then parleys were going on at the Government level to develop a MSME- IIP.
And the nearly 5 crore strong MSME sector is functioning in statistical limbo.
Knn has learnt from a reliable source that Government has identified about 500 products, based on their output in the MSME sector, for the basket of products from which the production data will be collected.
After statistical treatment of the raw data the MSME – IIP will be reported.
MSME IIP will address a crucial void in availability of information on the growth of the sector and its variation over a period.