MSMEs survey before Vibrant Gujarat

In order to gauge the health of small business in Gujarat, the state government is conducting a crucial sample survey of Micro, Small and Medium Enterprises (MSMEs) that employs about over 16 lakh persons across the state. The results of the survey is expected to be out before the second week of January 2013 when the state government's flag-ship, Vibrant Gujarat Investors' Summit, gets underway.

The survey having a sample size of 15,000 units is being conducted under the aegis of Industrial Extension Bureau (iNDEXTb), the state-run organisation that assesses the progress of industries with reference to number of units, persons employed, amount of investment and value of production, government sources said.

"The survey will look at the number of units that have shut down in the Gujarat. It will also analyse the reasons behind the closure of the units. For instance, is it because of lack of demand of products manufactured by a particular MSME unit, power shortage, lack of working capital, labour problems, technological issues, etc," said a government official requesting anonymity.

A part of the findings from this survey will be published during the upcoming Vibrant Gujarat Investors' Summit (January 11-13), where the issues surrounding MSMEs will be one of the main focus areas.

This survey comes at a time when the state government is facing criticism from several quarters for having ignored the MSME sector in the state. As as per the latest government figures, there are 1.78 lakh MSMEs in Gujarat, most of which is concentrated in Surat (75,000 units), Ahmedabad (47,000) and Rajkot (14,000).

A survey carried out by Associated Chambers of Commerce and Industry of India earlier this year showed that Gujarat stood at a lowly 14th position among the states in generating jobs in the MSME sector. The survey revealed that Gujarat generated a little over 8,000 jobs between April 2011 and February 2012 and was well behind economically weaker states like Bihar, Orissa, Assam, Uttar Pradesh and Madhya Pradesh in job generation in this sector.

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