MSME Sector in Haryana – The Mentor Group

Haryana is one of the emerging leaders in terms of commercial production and a major contributor in export as well. From passenger cars, two-wheelers, mobile cranes, tractors in the automobile sector to becoming the 2nd largest of food grains and its export. The Micro, Small and Medium Enterprises (MSME) sector is considered as a model that focuses on the socio-economic growth of the Indian economy. The sector provides a sizeable share of employment opportunities, especially for the agriculture sector. As per the MSME annual report for 2016-17, the contribution of this sector is around 6% of the country’s GDP. Along with this 45% of the exports, and 33% of the manufacturing output.

The industrial transformation has been possible specifically due to the manufacturing and tertiary sector. This has, in turn, led to the Haryana’s economic growth. The state is the leading state in terms of manufacturing GSDP contribution which is higher than the national average. Especially, the states like Gujarat and Maharashtra are gradually becoming the tough competitors to Haryana. Not just limited to the manufacturing, the tertiary sector – real estate, professional services, finance, defense, public administration, and other services have also contributed much to the economic growth.

The industrial growth in the state could not have been possible without the support of globalization of markets, flexible economy and infrastructural creations. Since 57% of the state area falls under the National Capital Region (NCR) with 21 national highways and well-connected rail and land transportation routes has given a competitive edge to the State. With the introduction of the Haryana Enterprise Promotion Policy (EPP), 2015 has benefited the state by supporting the manufacturing and services enterprises with a transformational roadmap. The number of efforts been put up on the regulatory schemes and policies by the government shows the enthusiasm and growth-oriented approach of the State. The government bodies are working hard in improving the ease of doing business in the State.

Investment in industrial units, machinery and the equipment required is what categorizes an enterprise into micro, small and medium enterprises. The categorization is as follows:

In Manufacturing the investment (in plant and equipment):

Micro Enterprises:  should not exceed 25 lakh rupees

Small Enterprises: should be more than 25 lakh rupees but does not exceed 5 crore rupees

Medium Enterprises: should be more than 5 crore rupees but does not exceed 10 crore rupees

In the Services Sector the investment (in equipment):

Micro Enterprises:  should not exceed 10 lakh rupees

Small Enterprises: should be more than 10 lakh rupees but does not exceed 2 crore rupees

Medium Enterprises: should be more than 2 crore rupees but does not exceed 5 crore rupees

Haryana enjoys more than 1 lakh MSMEs with a total investment of more than 20,000 crore rupees. This has generated more than 10 lakh jobs for the state with the majority of being placed in automobiles, food & beverages, textiles, engineering, and the metals sector. The constant efforts and initiatives of the government have made it possible for them to lead national industrial projects like Amritsar-Kolkata industrial corridor, Kundli-Manesar-Palwal global corridor and etc. Along with this in order to provide a conducive industrial environment, the government has set up co-work spaces, incubation centers. The recent “Haryana MSME Policy 2019” aims to give a boost to the MSME sectors.

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