Rural Infrastructure - Kurukshetra October 2018 (Part - 2) (Download PDF)

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IT Initiatives of Ministry: My MSME: Web Based application module to submit & track online application under various schemes of the Ministry. Udyog Aadhar Memorandum: Mobile friendly application for registration of MSMEs on self-certification basis.

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Rural Infrastructure - Kurukshetra October 2018 (In English)

Kurukshetra October 2018: Rural Infrastructure

  • MSME Samadhaan: Empowers MSMEs to resolve the issues of delayed payments.

  • MSME Sambandh: Disseminates information on procurements by CPSEs/Govt. Departments.

Sustainable Development Goals & MSMEs:

MSME development has potential for wide reaching impacts on SDGs globally, including:

  • SDG 1 (End poverty)

  • SDG 2 (Zero hunger),

  • SDG 3 (Good health & well-being),

  • SDG 5 (General equality),

  • SDG 8 (Promote inclusive & sustainable economic growth, employment & decent work)

  • SDG 9 (Improve sustainable industrialization & fostering innovation) (Liu, 2017)

Women Entrepreneurs & MSMEs:

Approx. 78 % of women enterprises belong to the services sector.

Schemes for Women:

  • Trade Related Entrepreneurship Assistance & Development (TREAD) Scheme for women.

  • Micro & Small Enterprises cluster development programme (MSE-CDP).

  • Credit Guarantee fund scheme for managerial development.

  • Support for entrepreneurial & managerial

  • Exhibitions for women under promotional package for MSEs.

Success stories of Women Entrepreneurs:

  • Shri Mahila Griha Udyog Lijjat Papad, popularly known as Indian Women’s cooperative involved in manufacturing of various fast-moving consumer goods.

  • The Mulukanoor Women’s Co-operative Dairy, the country’s maiden dairy, set up & run by women, has been registering a steady growth since its inception.

  • The Self-Employed Women’s Association (SEWA) is successful & its efforts have mobilized large numbers of poor self-employed women for empowerment. From small beginnings in 1972, as a group of poor, illiterate women working as casual laborers in the wholesale textile markets.

WE-HUB – Telangana

The Govt. of Telangana has established WE-HUB at Hyderabad. The primary objective of WE-HUB at Hyderabad. The primary objective of WE-HUB is to enable women entrepreneurs to succeed in their start-ups or businesses.

SABKI YOJANA, SABKA VIKAS

  • To implement Gram Panchayat Development Olan (GPDP) effectively, the Central Govt. will be launching “Sabki Yojana Sabka Vikash” campaign on October 2 this year. Under this, more than 250,000 Gram Panchayats of the country will be included. The participation of grassroots people will be ensured in preparing Gram Panchayat Development Plans under this ambitious campaign called “Sabki Yojana Sabka Vikash”. This mega campaign to be launched on the birth anniversary of the Father of the Nation Mahatma Gandhi will conclude in December.

  • There are 248160 Gram Panchayat, 6284 Block Panchayat & 595 District Panchayats in our country. The number of elected representatives at all levels of Panchayats is 31 lakhs. In this way, India’s Panchayat Raj-system is the world’s largest democratic system.

  • The number of elected women Panchayat representatives is 1439000.

  • Mandatory reservation provision in Panchayats provided more than one million representatives of women, schedules castes, scheduled tribes & other backward class’s entry in the democratic process.

  • The 73rd Constitution Amendment Bill, which came into existence on April 24,1993, can be called a milestone in the history of modern Panchayati Raj System.

  • Gram-Panchayats should be self-reliant in every way.

  • Schemes being formulated under the Gram Panchayat Development Plan (GPDP) will bring economic & social prosperity to the villages & desired development will be possible at the local level.

  • It is noteworthy that in the 13th Finance Commission, a total of Rs. 63,051 cr. was recommended for all three-level panchayats district, block & village panchayats, while under the 14th Finance Commission, Rs. 2 lakh 292 cr. was approved to be made available directly to gram panchayat alone.

  • On the occasion of National Panchayat Raj Day on April 24,2018, Prime Minister Narendra Modi launched a reconstituted “Rashtriya Gram Swaraj Abhiyan Yojana (RGSA) ” in Mandla, Madhya Pradesh to strengthen Panchayati Raj system in the country & to eliminate hurdles & problems in its rods to success.

FOSTERING TECHNOLOGY & INNOVATION

Technology Infusion in SME Sector:

  • Technology is the enabler for growth. Creating innovation & technology ecosystem is pertinent for commercializing inventions for value added products & services.

Top Technology Trends Shaping SMSs:

  • Industry 4.0 also known as Fourth Industrial Revolution originated in Germany is taking the manufacturing sector by storm.

Artificial Intelligence (Al) & Machine Learning (ML):

Virtual Reality (VR) & Augmented Reality (AR):

  • VR is an artificial, computer-generated simulation of a real life environment or situation. The immersion happens to the user by stimulating their vision & hearing. VR is manifested thru wearable hardware. AR technology creates interactive layers, virtual enhancements on an existing reality.

Block chain Technology:

  • Block chain or a distributed ledger technology is a network of computers that enable digital transactions. This is a peer-to-peer, anonymous network. It records & stores every transaction that occurs in the network, providing greater transparency, provide a quick & secure transactions.

Financial Technologies (Fintech):

  • Large banks & NBFCs have catered to SMEs loan requirements in the past.

3D Printing:

  • 3D printing also known as Additive Manufacturing is the process of creating 3 dimensional physical object from 3d CAD data.

EMPLOYMENT GENERATION THROUGH MSMEs

Case study: Handloom Sector in Kerala:

  • The handloom sector in Kerala employs about 1.75 lakh of people directly & indirectly & this stands second to the coir sector in providing employment among the traditional industries of the state. The handloom industry in the state is concentrated in Thiruvananthapuram, Kannur, Kozhikode, Palakkad, Ernakulum, Thrissur, Kollam & Kasaragod Districts.

  • The Kerala Kasavu sarees are praised by women all over India for their fineness of count & natural colours, texture & golden borders.

  • Balarmapuram in Thiruvananthapuram district is the most historically important & one of the oldest handloom centers in Kerala. The weavers belonging to Chaliyas community migrated from Nagarcoil & Thirunelveli in Tamil Nadu.

  • In Kuthampully, Devangas migrated from Karnataka are engaged in weaving.

Stand-up India:

  • Facilitate bank loans b/w Rs. 10 lakh to Rs. 100 lakh to at least one Scheduled Caste (SC), Scheduled Tribe (ST) borrower & at least one Women Borrower per bank branch of all scheduled commercial banks for setting up a green field enterprise.

Scheme for the Development & Promotion of Women Entrepreneurs:

Trade Related Entrepreneurship Assistance & Development (TREAD). The scheme envisages economic empowerment of women thru the development of their entrepreneurial skills in non-farm activities.

  • GoI grant up to 30 % of the total project cost to the NGOs for promoting entrepreneurship among women.

  • GoI grant up to Rs. 1 lakh per programme to training institutions NGOs for imparting training to the women entrepreneurs.

  • Need-based GoI grants up to Rs. 5 lakh to National Entrepreneurship Development.

Conclusion:

  • Issues related to credit, like adequacy, timely availability, cost & mortgages continue to be a concern for MSME.

MSME: THE ENGINES OF GROWTH

  • MSME opportunity framework that will provide the necessary impetus to seize the opportunities created by

    • Emergence of domestic demand

    • Increase in spending in infrastructure & defense sectors

    • Increase in FDI in existing & emerging businesses in India w/the make in India initiative

    • Double digit growth expected in numerous business sectors

  • MSME sector had created around 11.10 crore jobs.

  • Increasing the efficiency of the MSME sector depends on strengthening the following three pillars:

    • Innovation

    • Technology

    • Finance

  • Entrepreneurs preparing for the global market need to focus on the following:

    • Global mindset

    • Lean manufacturing

    • Mergers & Acquisition

    • Complementing large industries

    • Alternate Finance

    • Prepare for non-tariff barriers

    • Explore optional of Co-operation, Fair trade, IPR & FDI

  • Winning formula for enhancing competitiveness combines

    • Elimination of waste

    • Enhancement of Technology

    • Use of Quality & productivity tools

    • Total employee Involvement

    • Flow of information to all enterprise stakeholders

    • Use of ICT

Conclusion:

  • Adam Smith, an 18th century economist & author, in his book Wealth of Nations has talked about the ‘Invisible Hand’ that individuals pursuing their best self-interest would result in better overall good to the society.
  • If India wants to mark its presence in the global arena, the invisible hand would result in greater overall good to the society. The MSME sector as the ‘engine of growth’ for India will be the vehicle of development of the country in terms of creating employment opportunities.

COIR INDUSTRY: PROSPECTS & CHALLENGES

  • India is the largest coir producer in the world & also the largest consumer of coir & coir products produced in India is consumed internally.

  • The coir industry provides employment to about 7 lakh people in the country out of which 80 % are women.

  • The growth & development of coir industry in India has taken place in area where there is concentration of coconut cultivation & availability of coconut husks. The industry is mainly concentrated in Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Orissa, Assam, Andaman & Nicobar, Lakshadweep, & Pondicherry.

  • Kerala, the home of Indian coir industry tops in terms of production & cultivation area of coconut production & over 85 % of coir products, particularly white fiber.

  • Only about 50 % of the coconut husks is utilized in the coir industry, the remaining is being used as fuel in rural areas.

  • In India, it is estimated that 1,000 husks yield 104kgs of fiber.

  • India is the largest coir producer in the world accounting for more than 80 % of the total would production of coir fiber.

Employment Potential

  • Women constitute 70 % of the workforce & primarily engaged in spinning & household industries.

Foreign trade

  • Coir is month-proof; resistant to fungi & rot. It is resilient in nature i. e. springs back to original shape even after constant use. It is flame-retardant & unaffected by moisture & dampness Coir is tough & durable. It provides excellent insulation against temperature & sound.

Export of coir products:

  • India was exporting coir products to 115 countries during the period April 2014 - 2015. China is the major importer of coir & coir products both in terms of quantity & value w/a share of 39% & 28.59 % respectively.

  • USA which was the major importer of Coir Products for the past few years has now been in 2nd position w/overall share of 12.39 % in quantity & 21.29 % in value.

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Rural Infrastructure - Kurukshetra October 2018 (In Hindi)

Kurukshetra October 2018: Rural Infrastructure

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- Published/Last Modified on: October 24, 2018

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