Prime Minister Manmohan Singh constituted the Working group and it made recommendations to allocate 64,790 crores. Issues concerning startups can also be addressed under some respective verticals.

MSMEs are a blend of traditional and modern parameters. Liberalization and globalization have opened opportunities for the sector. Now, MSMEs can do business with international clients from their local offices. National Manufacturing Policy (NMP) introduced by India is meant to make this country a manufacturing hub and to earn gains in GDP share up-to 25 percent for manufacturing in the next decade. This requires support from MSME sector as the current GDP share is 15-16 per cent.

The huge jump requires convergence of efforts and resources and to build capacity of small businesses to become efficient and pro-active agents. The convergence involves setting up of seamless institutional structures, performance-based funding, sound macro-economic policies, performance indicators, transparency, good governance, monitoring and evaluation, participation by beneficiaries and so on.

The working group found that the major deterrents to MSMEs are regulation, credit and finance, orthodox marketing, technology, skill deficits, advocacy, transparency and empowerment. During the 12th Plan Period industrial estates having plug and play facilities will be launched as pilot projects. The Government is likely to provide comfort in the form of a guarantee or a co-investment like venture capital fund. It should also come forward to protect the intellectual property (IP) of startup SMEs by assisting in patent filing and IP protection mechanisms.

Small and Medium Enterprises in Haryana complain about having constant problem of delayed payments from their customers. The ‘MSME Act of 2006′ has prescribed that it is mandatory for customers to make payments to SMEs within the set stipulated period. The provisions of Micro, Small and Medium Enterprises Development Act, 2006 also make it essential for buyers to pay micro or small enterprises for their goods and services within 45 days of delivery.

Haryana facilitation cell is constituted to look into payment grievances. It is making it known to buyers that if they do not pay back the supplier within the stipulated period then they are liable to pay compound interest for delayed payment. The rate can then be three times compared to that of bank rate. Thus, the facilitation cell in Haryana has come to aid MSMEs and is redressing their problems. However, the cell acts only after receiving complaints from a SME enterprise.

‘Tech Transfer 2012′ shall be organized in collaboration with IKP Knowledge Park (IKP) in cities like Hyderabad and Ahmedabad. The counseling for technology transfer will start on February 9th, 2012 along with BioAsia event. Ahmedabad will host the event on February 22nd, 2012 with support drawn from Gujarat State Biotechnology Mission (GSBTM).

This is an excellent opportunity and a prospective platform for SMEs where they can learn about relevant technologies directly from industry experts. The technologies are aggregated from across the globe so as to give Indian MSMEs a clear picture of what is possible. ‘Tech Transfer 2012′ is going to be the right opportunity to fulfill technology related requirements of Indian life-science MSMEs.

Federation of Indian Micro, Small and Medium Enterprises (FISME), an apex body of the sector, stated that mandatory sourcing would not really make much of a difference. There is deep concern among Indian MSEs as they do not completely believe in assurance from the government’s end. SMEs are not sure whether the 30 percent local outsourcing would last for long as problems will spur when the WTO norms will be brought into application.

Micro, Small and Medium Enterprises (MSME) Ministry has confirmed that a ready-made market for the small business sector will emerge once foreign retailers directly start procuring raw materials from small-scale companies of India. The decision is being appreciated by Federation of Indian Export Organizations (FIEO). It is believed that the step would bring more FDI to India.

It is the surging prospects in domestic demand and not just exports that has stimulated SME’s optimism according to the survey. The other reasons for the optimism are slow economic recovery in western countries and impressive value of rupee against US dollar.

There is considerable improvement in credit availability for SMEs according to the survey. But then it also cautions that interest rate increase may adversely affect the capacity expansion of the SME sector.

SME sector currently employs 60 million people and each year creates 10 lakh jobs. The micro, small and medium enterprise (MSMEs) sector adds 8 percent to GDP, 45 percent to manufactured output and 40 percent to exports.

Earlier the RBI had asked public sector banks to increase credit flow to the small business sector.