Sept 1, 2009, New Delhi: The quick results of 4th All India Census of MSMEs (2006-07) have become available now. The results reveal that there were 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 unregistered units. Of the total number of such units, 28% are in manufacturing and 72% in service-related sectors. 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 the registered units and 5.03 crore in the unregistered units.
The data on registered units reveal 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 per unit employment has increased from 4.48% in 2001-02 to 6.24% in 2006-07.
Once the survey of unregistered units is completed, information about gross output, investment, outstanding loans, sickness, exports etc will be available. This data will also include information on Khadi and Village Industries Commission (KVIC) and coir units.
This is the first Census after the change in definition of the sector and for the first time it includes medium enterprises and services. According to the Census, an enterprise is defined as a unit with fixed premises and therefore, 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 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 governments of the states and the union territories.
Statistics pertaining to the sector play an important role in 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 the MSMEs.
The quick results are based on a Census of all registered units conducted by the Office of Development Commissioner (DC) MSME and Economic Census of unregistered units conducted by the Central Statistical Organisation. The sample survey of the unregistered units by the Office of DC MSME is underway and is expected to be completed shortly. This will provide complete information on the MSME sector.
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