‘Naano’ to Nano – Comprehensive Industrial Development in Gujarat

Published By : Admin | November 10, 2012 | 13:16 IST
"The Government’s pro-development policies, a result of the extraordinary foresight of the Hon. Chief Minister, have resulted in Gujarat excelling in the MSME sector in India."
"According to a study by CRISIL, for the year 2010-11, Gujarat-based SMEs posted a 31 percent growth in Net sales compared to the national average of 26 percent."
"The Net Profit margin for Gujarat-based SMEs was 6.66 percent compared to the national average of 3.75."
"Moreover, 16 percent of the Industrial Production in India comes from Gujarat alone and Gujarat accounts for 22 percent of the total investments in the country."
"Under the leadership of Shri Narendra Modi the Government of Gujarat has made resolute efforts to provide world-class infrastructure for the development of industries"

 

No discussion about the Industrial Development in Gujarat is complete without a mention of the Special Economic Zones, the Tata Nano Manufacturing Plant and other Mega-projects. Because of the visionary leadership of Shri. Narendra Modi, the big corporate houses from India and abroad are flocking to Gujarat. At the same time, lakhs of ‘naano’ industries are also prospering in Gujarat; these are the unsung heroes of the Gujarat growth story.

There are over 4 lakh registered and almost 26 lakh unregistered Micro, Small and Medium Enterprises in Gujarat. Micro, Small and Medium Enterprises (MSMEs) are defined as those with investments in equipment less than 25 lakhs, 5 crores and 10 crores respectively. In Gujarat, MSMEs primarily cover the Textile (21.4 percent) Metal Products (31.9 percent) and Chemical products (7.6 percent) sectors. It is no surprise that Gujarat, with its strong tradition of business and entrepreneurship, has a vibrant MSME sector.

*GIDC areas in the state

The Government of Gujarat has laid out robust provisions in its Industry Policy (2009), to aid and assist the growth and expansion of the MSME sector. An Interest subsidies scheme has been initiated to provide assistance for the establishment of new enterprises and the expansion and modernization of existing enterprises. The Government is also taking efforts to rehabilitate underperforming industrial units by providing financial assistance for the diagnostic studies of such units. Additionally, in order to ensure the development of MSMEs in areas with mega-projects, the Government provides monetary assistance to the large industries to support the establishment of ancillary and auxiliary units.

The Government of Gujarat, known for its innovative governance methods, understands the importance of new technologies in business. Hence, the government has set up a Technology Acquisition Fund to provide financial assistance to MSMEs, which wish to incorporate new technologies to improve products and processes. Additionally, to promote innovation in SMEs, the Government has made provisions to provide Venture Capital Funding through FI/Nodal Banks for projects which adopt innovative technologies.

Understanding the importance of the ‘Cluster Development Method’ to advance MSMEs, the Government has included special provisions in the Industrial Policy to provide financial assistance for the development of such clusters. The Industrial Policy also emphasises interventions such as capacity building of cluster enterprises through marketing initiatives, technology up-gradation initiatives, quality improvement and training/skill up-gradation initiatives, creation of cluster-specific common infrastructure and facilities, creation of an incubation centre, establishment of ITI extension centres and other need-based facilities.

The Government of Gujarat also intends to help MSMEs explore new markets by arranging their participation in trade fairs. The Gujarat Government will also support the Gujarat SME manufacturing Summit, to be held in April 2013, which aims to ‘‘equip the manufacturing SMEs to prepare themselves thoroughly for assessing the business opportunities and take necessary actions in developing their enterprises to achieve business goals’’

One of the major reasons for the rapid industrial growth in Gujarat is the availability of excellent infrastructure facilities in the state. Under the leadership of Shri Narendra Modi the Government of Gujarat has made resolute efforts to provide world-class infrastructure for industrial development. Gujarat is the only state in the country to provide 24-hour uninterrupted power supply to all its villages. The World Bank, in a recent report, has praised Gujarat’s roads and has recognized them to be at par with international standards.

*Provision of power provided a major boost to the industrial sector

The Government’s pro-development policies, a result of the extraordinary foresight of the Hon. Chief Minister, have resulted in Gujarat excelling in the MSME sector in India. According to a study by CRISIL, for the year 2010-11, Gujarat-based SMEs posted a 31 percent growth in Net sales compared to the national average of 26 percent. The Net Profit margin for Gujarat-based SMEs was 6.66 percent compared to the national average of 3.75. Moreover, 16 percent of the Industrial Production in India comes from Gujarat alone and Gujarat accounts for 22 percent of the total investments in the country.

References –

https://smechamberofindia.com/Gujarat_SME_Manufacturing_Summit/Why_this_Summit.aspx

https://www.imd-gujarat.gov.in/policy/industrial-policy-2009-at-a-glance.pdf

DNA – Special Issue ‘MSME – Powerhouse of Growth’

https://www.dnaindia.com/india/report_enterprising-state-smes-beat-their-national-peers_1706499

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Friends,

In this series of post-budget webinars, today marks the fourth and most significant one. Fulfilling aspirations of people is not merely a subject of discussion-it is the core objective of this budget and the firm resolve of this government. Education, Skill, Health, Tourism, Sports, and Culture are fundamental sectors that serve as the major means of fulfilling these aspirations. Therefore, in this webinar, we are deliberating on these crucial dimensions. For the implementation of budget announcements, the thoughts and suggestions of all experts, policymakers, scholars, entrepreneurs, and my young companions present here are extremely important. I warmly welcome and greet you all in this fourth session of the budget webinar.

Friends,

India today is working on a vast vision for preventive and holistic health. In recent years, the country’s health infrastructure has been strengthened, with hundreds of new medical colleges opening across districts. Through the Ayushman Bharat scheme and wellness centers, healthcare services have expanded to villages nationwide. Our yoga and Ayurveda are gaining popularity across the world. You will certainly discuss various aspects of this, but I would like to highlight one important subject-the care economy. In the coming decade, the number of senior citizens in the country will rise rapidly. Moreover, even today, many countries across the world face a huge demand for caregivers. Therefore, in the health sector, new skill-based employment opportunities are emerging for millions of youth. I urge the health sector experts present in this webinar to suggest new training models and partnerships so that the training ecosystem in the country can be further strengthened.

Friends,

Closely related to this is the subject of telemedicine. Today, a large number of people in remote areas are benefiting from it, and trust in it is steadily growing. However, I believe there is still a great need to increase awareness and ease of access in this area.

Friends,

Over the past decade, a major transformation has taken place in the mindset of the country. Today, beyond the boundaries of villages, towns, and cities, every young Indian wants to do something new, driven by the spirit to achieve. This new mindset of the new generation is the nation’s greatest strength, its most valuable capital for a bright future. To capitalize on this, we must continuously modernize and upgrade our education system. The new education policy has laid the necessary foundation for this. Now, it is essential that our curriculum remains updated according to market needs! We must accelerate the process of linking our education system with the real-world economy. We need to place greater focus on subjects like AI and automation, digital economy, and design-driven manufacturing.

Friends,

The country is consistently working to connect education with employment and enterprise. New models like university townships reflect this approach. Today, India is promoting the A.V.G.C. sector-Animation, Visual Effects, Gaming, and Comics. India is moving towards an innovation-driven economy. Many academicians and academic institutions are connected to this webinar today. I urge you to deliberate on developing your campuses as centers of industry collaboration and research-driven learning. This will provide students with real-world exposure and strengthen the skill ecosystem.

Friends,

A very important subject is STEM-Science, Technology, Engineering, and Mathematics. It is a matter of great pride that the number of daughters showing interest in STEM subjects is steadily increasing in our country. As we prepare for futuristic technologies, it is crucial that no daughter is held back due to lack of opportunities. In this webinar, you must discuss this direction. We need to place greater emphasis on increasing women’s participation. We must build a research ecosystem where young researchers have full opportunities to experiment and work on new ideas.

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Youth power becomes national power only when it is healthy, disciplined, and full of self-confidence. That is why, in recent years, sports have been seen as an important stream of national development. Initiatives like Khelo India have infused new energy into the sports ecosystem of the country. Sports infrastructure is being strengthened across the nation. In this webinar, you must deliberate on some key questions: How can talent be identified more accurately even from small towns and villages? How can structured financial support for thousands of athletes be improved? And thirdly, how can our sports bodies be made more professional? In the coming years, the Commonwealth Games will be held in India, and the country is striving to host the Olympics. In such a scenario, we must identify young athletes at an early age and nurture them, only then will India be able to raise its flag high in international competitions.

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Friends,

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Friends,

When institutions, industry, and academia work together, the pace of transformation accelerates. I am confident that this series of post-budget webinars will provide concrete direction for the future. Such efforts will further strengthen the foundation of a developed India. And friends, it is a very pleasant experience that due to the tradition of webinars, after the budget and especially during implementation, I have been told that this year, lakhs of people connected to these subjects-experts, beneficiaries, and those involved in the system-have actively participated in the webinars. Our officials have informed me that excellent and practical suggestions are coming in. This means not only solutions to problems but also new energy and new momentum to move forward with confidence. I say this is a very delightful experience of the webinars. All those who participated in these webinars are worthy of appreciation and gratitude. Once again, I extend my best wishes and heartfelt thanks to all of you.

Namaskar!