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ABSTRACT
The role played by the Micro, Small and Medium Enterprises (MSMEs) in the economic landscape of the country is worth appreciating. With the announcement of Make in India Campaign by our Prime minister Shri. Narendra Modi and its gaining strength and popularity, there is definitely an advantage and scope of growth for MSME sector which already constitutes a major share (45 %) of the Indian manufacturing sector.(SMEs Role in India's manufacturing Sector, India Brand Equity Foundation). MSMEs can be the backbone for high growth businesses with both domestic and foreign companies investing in the 'Make in India' initiative. 'Make in India with zero defect and zero effect', is a significant opportunity. The new wave MSME should enable the development of a business eco system that enables and continuously support business that are gearing to deliver the right product, the right quality, the right solution and the right service at a competitive price, both in domestic and international markets. This article tries to understand the benefits of Make in India Initiative on the MSMEs and the supports offered by the government towards enhancing the growth in this sector.
Introduction
MSMEs contribute nearly 8% of the country's GDP, 45% of the manufacturing output and 40% of the exports. (Recommendations of the Inter-Ministerial Committee for Accelerating Manufacturing in Micro, Small & Medium Enterprises Sector -2013). Make in India Campaign which emphasizes on increasing the share of manufacturing in India's GDP from 14-15% to 25 % by 2022 has the potential to take the MSME sector to unheard-of-heights. (Development in MSME Sector for Make in India Campaign, Business Standard Magazine). One of the four key initiatives in the campaign , the micro and small enterprises (MSE) cluster development programme (MSE-CDP), mandates that all Central ministries, departments and public sector undertakings (CPSUs) must procure a minimum of 20 per cent of their annual requirement of goods and services (by value) from MSEs with effect from April 2015. The role played by CPSUs in the last few years in the growth of MSMEs is vital .In 2013-14, 56 CPSUs organised 1,007 vendor development programmes (VDPs) for MSEs. In 2014-15, the target was over 55 national VDPs and 351 state VDPs across the country with a budget allocation of...