Bengaluru, Apr 30 (KNN) As the country is in the middle of high pitch electioneering with several political parties making tall promises to the MSME sector, it may be pertinent for these parties to appreciate that most of the enterprises are located in six states, including UP, Tamil Nadu and Karnataka.
“Out of the total MSMEs, more than 55 per cent of the enterprises are located in six states, namely Uttar Pradesh, Maharashtra, Tamil Nadu, West Bengal, Andhra Pradesh and Karnataka,” according to a case study done by the Karnataka Small Scale Industries Association (KASSIA) here.
It also said that Karnataka is considered as one of the most desired industrial location for setting industries in the country. The state has 87,339 SMEs with an investment of Rs 16,312.05 crore.
In its election manifesto, the Congress Party, which led the UPA government at the centre for 10 years made several promises to boost the country’s industrial output with a focus on small and medium enterprises and promoting a flexible labour policy.
The Election Manifesto of India’s oldest party has also promised that the Indian SMEs would be facilitated access to world class technology at affordable prices by creating a ‘Patent Pool’.
It said it would create 100 new urban clusters around existing small and emerging cities and link them with power and transport facilities; boost the manufacturing sector with emphasis on exports; and create “an enhanced framework to promote exports and wave off all taxes, Central and State that go into exported products.”
The Congress Manifesto has also ensured some protection to the domestic industries by way of tariff; and improve “India’s Ease of Doing Business Ranking from the current 134 to 75 within five years, by streamlining the process for starting a business, getting various permits, easing access to credit, streamlining the tax enforcement systems and various other interventions.”
Meanwhile, the Bharatiya Janata Party (BJP has also promised to address a wide range of issues like credit to SMEs, IPR, price rise, corruption, development of infrastructure, education, all-round boost to agriculture, manufacturing and services sector, simplification of tax regimes, among others.
Reiterating the fact that the SME sector is crucial for the economic development of the country, BJP said the sector needs to be developed by providing international linkages for exports, availability of credit through a dedicated SME bank, supply chain efficiencies, adoption of IT, support in R&D and innovation, and a policy support for enhancing the mandate to purchase from SME for large scale projects.
Laying emphasis on the labour intensive sector and handicrafts, the manifesto promises to “move up the value chain of the sector driven by a focus on quality.”
On the other hand, the Aam Admi Party (AAP) has promised simplification of trade procedures, pro-business environment and anti-crony capitalism, but is against FDI in multi-brand retail. The party promised to encourage honest compliance and punish heavy defaulters and simplify the tax regimes.
AAP also said it would focus on “creating decent employment and livelihood opportunities for young women and men in honest enterprises across agricultural, manufacturing, or services sector; particularly for about 12 million new youth seeking jobs every year.