Analyzing the Aftermath of PSB A Voyage of Msme in Tamilnadu

 

E. Saranya Devi¹, Dr S Rajamohan²

¹Research Scholar, Alagappa Institute of Management, Alagappa University, Karaikudi.

²Senior Professor and Director of, Alagappa Institute of Management, Alagappa University, Karaikudi.

 

ABSTRACT:

Micro Small and Medium Enterprises (MSMEs) play a pivotal role in the nation's economic growth. These enterprises have been emerged as a vibrant and competitive segment of the Indian economy over the last five decades¹. Small and medium-sized enterprises not only play a key role in large-scale sector of creating self-employment opportunities at relatively lower capital costs than large enterprises, but also help to industrialize rural and backward areas, thereby reducing regional imbalances, ensuring a more equal distribution of national incomes, and abundance². These enterprises reinforce the national industries as ancillary units and this sector contributes enormously to the socio-economic growth of the country. This paper indicates to show how the role of these enterprise strengthens and creates among the youth and passionate people for self-employment opportunity to make them entrepreneurs in Tamil Nadu and contribute for the economic development in Tamilnadu³.

 

 

 

INTRODUCTION:

MSME-is a cornerstone of sustainable growth in many developed and emerging economies. Often rightly referred to as the "growth engine" for India. This sector has emerged as a vibrant and competitive sector manufacturing a wide range of products, from simple agro-products to high-precision engineering tools and equipment. Small and medium-sized industries are thought to have lower capital-output and capital-labour ratios than large-scale industries and thus better serve development and employment objectives. These sectors encourage the growth and development of the Khadi, Village and Coir industries in order to establish new enterprises and job opportunities.

 

This sector has to improve the country's manufacturing base by improving the performance of small and medium-sized enterprises by developing skills and creating entrepreneurship opportunities².

 

In accordance with the provisions of the Micro, Small and Medium Enterprises Development Act (MSMED) 2006, Micro, Small and Medium Enterprises (MSME) are listed in two categories listed in table1 and table2.

 

Table1: Enterprises engaged in the manufacture / production of products belonging to any industry

Manufacturing Entreprises	Investment Limit in Plant and Machinery
Micro Level entreprise	Should not exceed with 25 Lakhs
Small Entreprise	Doesnot exceed with INR 5 Cr
Medium Entreprises	Doesnot exceed with INR 10 Cr

Secondary Data were deprived from official website³.

 

Table2: Businesses engaged in the provision/delivery of services.

Service Entreprises	Investment Limit in Equipment
Micro Level entreprise	Should not exceed with 10Lakhs
Small Entreprise	Doesnot exceed with INR 2 Crore
Medium Entreprises	Doesnot exceed with INR 5 Crore

Secondary Data were deprived from official website³.

 

OBJECTIVE OF THE STUDY:

1.     To study the roles and responsibilities of MSME in Tamilnadu.

2.     To study the significant of MSME schemes and Entrepreneurial Development Skills (EDS) in Tamilnadu

3.     To analyse the beneficiaries in caste wise disbursement of MSME schemes in Tamilnadu.

 

METHODOLGY:

This paper based on descriptive in nature. The data were collected from the e-journals, e-newspaper, official websites, selective journals and so on. Hence it is secondary data source in nature.

 

Contribution of Msme for Gdp in Tamil Nadu:

GDP is considered to be a very powerful single economic parameter to calculate the trend of economic development and the growth of the business unit. It is the revenues collected by the respective state government from various sectors such as the primary, secondary and tertiary sectors. Evidently, the increase in the GPD is a sign of economic growth in any region. GDP represents the economic growth of the state and the well-being of its individuals and also gives an indication of income disparity over space. The role of MSME in the Indian economy is immense and a decentralized economy, the contribution of micro, small and medium-sized enterprises is growing year to year⁴.

 

The contribution of these enterprises to total gross domestic products shows a growing trend. Both the manufacturing and service sectors of MSME will indicates the part of GDP. The MSME in Tamilnadu contribution level in GDP is mentioned below in table 3.

 

Table 3: Tamilnadu contribution in MSME manufacturing and economic power house- 2019

S. No	Products	Percentage of Share of TN in India
1	Automobiles - Exports	21
2	Commercial Values	35
3	Auto Parts	33
4	Leather Products	40
5	Textiles- Exports	20
6	Spinning Capacity	47
7	Power looms	22.02
8	Software and ITES	11.6
9	Yarn Spindles	11.6

Secondary Data were obtained from official website “Investment Opportunity”

 

The micro, small and medium-sized enterprises sector plays a vital role in the economic growth of the country. This sector is a significant provider of employment alongside agriculture. In 2019, the Tamilnadu contribution towards was in the GDP automobile – exports at 21 percent, Commercial Values at 35 percent, Auto Spare parts- 33 percent, Leather products at 40 percent.

 

Pictorial Representation imported from MS-Excel.

 

This pictorial representation shows that MSME plays predominantly involved in the domestic growth of Tamilnadu. It was fluctuate every year. In India MSME contribution of GDP level in 2019 as 8percent. In 2019 Tamil Nadu has the largest share of 15.07 per cent MSME in India. The labor-capital ratio of small and medium-sized enterprises and the overall growth of the sector is much higher than that of large industries. The regional distribution of these enterprises is also much greater in India. Tamilnadu occupies the third place in India⁴.

 

MSME provides a wide range of services in almost all domains. Prominent with them are textiles, electronic devices, automotive ancillaries, engineering products, leather products, chemicals, plastics, garments, jewelry and so on. The State has registered 6.89 lakh MSMEs producing with over 8,000 product varieties with the total investment of more than INR 32,008 crores.

 

MSME is playing a vital role in agro industry and 15 districts in Tamilnadu provide a large shares in agro-industry in MSME. The varieties of food products produced from different districts were mentioned below.

 

Table 4: Agro and Food Processing Cluster in MSME-Tamilnadu 2019

S. No	State Name	Food Products
1	Krishnagiri	Frozen fruits and pulp Mango
2	Salem	Sago
3	Erode	Turmeric
4	Coimbatore	Processed milk and Dairy Products
5	Madurai	Rice milling, Rice bran oil
6	Thoothukudi	Common salt and Rice bran oil
7	Tirunelveli	Rice bran oil and Rice Milling
8	Thiruvallur	Vegetables, oils, chillies and Frozen fruits
9	Chennai	Processed Chicken, Fish processing, Poultry Farming
10	Kanchipuram	Frozen fruits, dairy product
11	Thiruvannamalai	Rice bran oil and Husk
12	Cuddalore	Fish Processing
13	Namakkal	Poultry Farming, Processed Chicken, Vegetables oils, sago
14	Ramnad	Chillies, Turmeric, common salt
15	Kanyakumari	Fish processing, vegetable oils

Secondary data were deprived in website⁴

 

The government takes initiative steps for providing loan disbursement to the farmers. MSME is the good initiative for the agro industries. We obtained rice from various districts such as Madurai, Tirunelveli, Thiruvannamalai and Thiruvallur even the government needed to support more districts like Tanjavore, Pudukkotai, Tiruchirappali and so on. Rice is the basic need of our Indian food. The Tamilnadu state government presently launched a better opportunities for transgender and persons with disabilities with attractive incentives as well as job creating opportunities in MSME agro industries. This policy has aimed to offers the land cost of 50percent and other incentives for setting up enterprises in 22 identified southern districts of Tamilnadu which are industrially backward disctricts named as Peramballur and Dharmapuri District.

 

MSME SCHEMES IN TAMILNADU:

These enterprises of the Southern State of Tamil Nadu have allowed the generation of 5.96 lakh jobs in the MSME sector with an investment value of Rs 5,541 crore attracted by the state from 3,573 MSMEs in Tamilnadu. This sector will help to realize the aim of the National Manufacturing Policy of increasing the sector's share of GDP from the current 16 percent to 25 percent by the end of 2022(Hindu Business line 2021). Tamil Nadu has a strong and vibrant MSME sector across all major industries, including textiles and clothing, engineering products, automotive accessories, leather products and plastics⁵.

 

UDYOG AADHAR MEMORANDUM:

Udyog Aadhar is a 12-digit Unique Identification Number issued by the Ministry of Micro, Small and Medium Enterprises, Government of India. It's also known as the Aadhar identity card of each Indian citizen⁶.

 

Pradhan Mantri Employment Generation Programme (PMEGP):

The Government of India has launched the implementation of a new credit-linked grant program called the Prime Minister's Employment Generation Program (PMEGP) by combining the two schemes that were already in operation until 31.03.2008, namely Prime Minister Rojgar Yojana (PMRY) and the Rural Employment Generation Program (REGP) for the generation of employment opportunities through the establishing of micro-enterprises. PMEGP will be a central sector scheme to be managed by the Ministry of Micro, Small and Medium Enterprises (MoMSME).

 

The scheme will be enforced by the Khadi and the Village Industries Commission (KVIC), a legislative body under the responsibility of the ministry of MSME, as a single nodal agency at national level. At the state level, the scheme will be enforced through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centers (DICs) and banks⁷.

 

Unemployed Youth Employment Generation Programme (UYEGP)

Government Department of Tamil Nadu has launched the Unemployed Youth Employment Generation scheme (UYEGP). The main objective of this UYEGP scheme is to reduce the unemployment problems of the socially and economically poor sections of society, in particular among the educated and unemployed to become self-employed by setting up the Service, Manufacturing, Business Enterprises by providing loans with State Government subsidies⁸. In Tamilnadu 2021, totally 16,437 candidates have applied under the schemes of UYEGP. The nationalized banks have sanctioned 3659 candidates were eligible to get the benefit under this scheme. Only 3531 candidates have received loan under this scheme, then 128 candidates are till waiting to receive loan from this sector and only 3372 applicants receiver subsidies from the sector, remaining applicant will receive the subsidies soon, The government of Tamilnadu has provided the community wise table listed below.

 

Table 5: Community-wise Received (2020-21)

Type of Community	Benefit in Numbers	Percentage
General	510	3.3
BC	7,696	50.1
MBC	4063	26.4
SC	2992	19.5
ST	112	0.7

Secondary Data were obtained from https://msmeonline.tn.gov.in/needs.

 

According to community basis the entrepreneurs were received benefits from the tamilnadu government, the highest category of community is Backward classes with 50.1 percent and the ST group of people were 0.7 percent level.

 

Hence ST people should get to utilize and more aware of this existing schemes. They should come forward and take the business risk in the society⁹.

 

New Entrepreneur Cum Enterprise Development Scheme (NEEDS):

Entrepreneur training would be offered to trained young people, encouraged to prepare their business plans and helped to link up with financial institutions in order to set up new Manufacturing and Service projects. The beneficiary must be an entrepreneur of the first generation⁷. The specifics of the scheme are as follows-Project cost above Rs.5.00 Lakhs and not exceeding Rs.5.00 Crore.  There are 3624 applicants have applied under the NEEDs in MSME in Tamilnadu. But the loan sanctioned only to 877 applicants, from these loan disbursement 757 applicants only received subsidies. The government of Tamilnadu has provided the community wise details are listed below.

 

Table6: Community-wise Received (2020-21)

Type of Community	Received amount from the project under the scheme of NEEDS (In Percentage)
General	159 (4.4)
BC	2025 (55.6)
MBC	930(25.5)
SC	513(14.1)
ST	15(0.4)

Secondary Data were obtained from https://msmeonline.tn.gov.in/needs.

 

According to community basis, the entrepreneurs were received benefits from the Tamilnadu government, the highest category of community is Backward classes with 55.6 percent and the ST group of people were 0.4 percent level.

 

Hence ST people should get to utilize and more aware of this existing schemes. They should come forward and take the business risk in the society. 1000 of entrepreneurs will be trained each year, along with at least 50percent of the beneficiaries would be women.

 

MSMI – In Chennai:

The Tamilnadu government provies the skill development programmes in the basis of MSME. It will help to facilitate the people of passionate who want to be a self-employer.

1) Industrial Motivation Campaign (IMC)

2) 2 weeks Entrepreneur Development programme (EDP) (2 weeks duration)

3) Entrepreneur Skill Development Programme (ESDP) (6 weeks)

4) Skill Development Programmes (SDP)

5) Vendor Development Programmes (National& State level)

6) Technical consultancy

7) Preparation of Project Reports

8) Marketing Assistanceand Technology Up gradation (MATU) Scheme

9) Seminars/Workshop on various subjects

10) Cluster Development

11) Awareness programmes on Public Procurement Policy

12) Export Promotion/Guidance

13) Industrial Potential Survey Reports

14) ISO and ZED Certification consultancy and reimbursement

15) Free guidance for Udyog Aadhaar Memorandum (UAM)

 

The government is ready to serve the nation for their livelihood but the people are not willing to take a risk in their survival. Only a few people are using this scheme. It should be advertising more in all the top most broadcaster⁸.

 

CONCLUSION:

Apart from providing self-radiance, self-employment, sustainable economic growth, and eradicating poverty by providing employment opportunities to youths, the MSME sector has included economic activities in India and around the world. The Indian government and the Tamilnadu government have made numerous efforts to boost the economic growth by providing relief measures to MSME units in order to increase their number and thus improve job opportunities, exports, and the GDP of the country¹⁰.

 

REFERENCES:

1.      A. Sathish and S. Rajamohan, (2018) “Micro, Small And Medium Enterprise – Before and After the MSMED Act, 2006”, ZENITH International Journal of Business Economics and Management Research, 8 (4), pp.155-162.

2.      A. Sathish and S. Rajamohan, (2018) “MSME in India- What Went Before?”, ZENITH International Journal of Business Economics and Management Research, 8 (9), pp.23-37.

3.      A. Sathish and S. Rajamohan, (2018) “Contribution of MSME in Indian Economy”, ZENITH International Journal of Multidisciplinary Research, 8 (12), pp.90-97.

4.      http://TheContributionofMSMEsIndianandGlobalEconomy.pdf

5.      https://msmeonline.tn.gov.in/needs.

6.      https://chennai.nic.in/new-entrepreneur-cum-enterprise-development-scheme-needs/

7.      A. Sathish and S. Rajamohan, (2019) “MSME in India for the sustainable Societal Development”, International Research Journal of Management Science and Technology, 10 (2), pp.10-14.

8.      A. Sathish and S. Rajamohan, (2019) “Simple Seasonal Time series Analysis Forecasting Model – Indian MSME in 2020”, ZENITH International Journal of Multidisciplinary Research, 9 (5), pp.46-55.

9.      A. Sathish and S. Rajamohan, (2020) “A Impact of Re-Engineering on Entrepreneurship and Employment in Indian MSMEs”, International Journal of Advanced Science and Technology, 29 (1), pp.1196-1205.

10.   A. Sathish and S. Rajamohan, (2019),” Role of Industrial Promotional Agencies in India for The Entrepreneurship Development: ZENITH International Journal of Multidisciplinary Research, 9 (6) pp.455-463

 

 

Accepted on 10.08.2021       ©A&V Publications All right reserved