October 2015

Message from Chairman & Managing Director, SIDBI

Dear All,
Dussehra Greetings to you and your family & friends,
We at SIDBI have recommenced our in-house e-journal OPTIMiSM to share and enrich
knowledge of the stakeholders for the betterment of the economy and MSME sector, in
particular. This is an exciting time for the country as India is Re-emerging and aspiring to be
the most preferred nation in the world. With a number of pro-active Government initiatives like
Make in India, Digital India, Start up India Stand up India, Skill India, MUDRA, etc., India has
become one of the fastest growing and third largest start-up ecosystem, apart from being the
most preferred destination for FDI in the world. Now all roads are leading to a Vibrant India.
We all are currently witnessing a Schumpeter Gale or Creative Destruction, named after
famous economist Joseph Schumpeter. It is synonymous with a disruptive process of
transformation that accompanies innovations in all walks of life. With a new order emerging,
Indian economy is now poised on an upward growth trajectory. Industrial production has
increased. Investment and urban consumption are growing. Policies are facilitating towards
an accelerating and enabling growth environment. This is reflected in improvement of Indias
rank to 55th position in the World Economic Forums Global Competitiveness Index (up by 16
position from last year). The MSME sector is now experiencing an atmosphere of positivism
and trust.
We at SIDBI are always ready to help MSMEs by addressing their financial and developmental
gaps. We hope this e-journal would contribute in its own way towards fulfilling national goals.
We will keep enriching this magazine with your support and guidance.
All The Best Wishes.
Dr. Kshatrapati Shivaji, IAS

Small Industries Development Bank of India

OPTIMiSM

October
2015

Macro Economic Scenario - Global

The IMFs latest Economic Outlook (October 2015), the global economy is projected
to record lower growth of 3.1% in 2015 from 3.4% in 2014 due to more
pronouncing of downside risks like low productivity growth, crisis legacies (high public
and private debt, financial sector weakness, low investment), demographic transitions,
ongoing adjustment in many emerging markets following the post-crisis credit and
investment boom, a growth realignment in China with important cross-border
repercussions and a downturn in commodity prices triggered by weaker demand as
well as higher production capacity.
However, the global growth will rebound to 3.6% in 2016. The positive contributing
factors are softer oil prices, a stronger U. S. economy, continued low global interest
rates, etc.
The advanced economies will continue to grow reflecting stronger growth of the USA
and
China,
strengthening
of
modest
GDP Growth (%)
recovery in Euro area, besides declining
Global
Advanced economies
global prices, accommodative monetary
Emerging market & developing countries
policies, improved financial conditions and
India
10
China
in some cases currency depreciation.
8
In emerging
market
and
developing
6
economies, growth is projected to slow
4
down to 4.0% in 2015 from 4.6% in
2
2014, but likely to increase to 4.5%
0
in 2016. Among the developing countries,
2012
2013
2014
2015
2016
Chinas growth is likely to moderate while
Source - World Bank
Indias to increase.
Amidst this positive environment, the IMF has cautioned of certain negative factors
like lower oil and commodity prices, a sharper than expected slow-down in China,
disruptive asset price shift and a further increase in market price volatility,
appreciation of US dollar and increased geo-political tension.

Macro Economic Scenario India

Indias growth is projected on a higher trajectory to reach to 7.6% in FY 2017. The

outlook for FY 2016 is that of a cautious optimism. The growth in FY 2016 is
expected to be in the range of 7.3 7.5% almost same as in FY 2015.
The positive contributing factors are pickup in reforms, higher investments, especially
in road infrastructure, lower commodity prices, gradual increase in consumption and
buttressed by a number of initiatives by Govt. of India (Box 1). This is reflected in
improvement of Indias rank to 55th position in the World Economic Forums Global
Competitiveness Index (up by 16 position from last year).
2

Small Industries Development Bank of India

OPTIMiSM

October
2015

Box 1: Recent Initiatives

A) Pradhan Mantri Jan Dhan Yojana
Objective is to ensure access to various financial services to the weaker sections & low income groups.
More than 18.47 crore account, 16.02 crore RuPay Debit card
Balance in accounts - `24,363 crore.
B) Pradhan Mantri MUDRA Yojana
Objective is to be an integrated financial and support services provider for the bottom of the pyramid
universe for their comprehensive economic and social development.
Target set to achieve `122000 crore of credit disbursement to these sections.
`70,000 crore to 27 public sector banks (including SBI and its associates).
`30,000 crore to private sector banks and foreign banks.
`22,000 crore to 56 RRBs / others.
As on 29 September, loans worth `24,913.93 crore have been disbursed under MUDRA, which was launched
in April with the aim to refinance loans given to micro enterprises.
C) Make in India
Started with the objective of encouraging domestic manufacturing.
25 sectors have been identified under the scheme to boost manufacturing in the country.
D) Smart Cities

smart solutions for efficient use of available assets, resources and infrastructure.

98 cities have since been announced as future smart-cities.

E) Skill India
Four initiatives namely National Skill Development Mission, National policy for Skill Development and
entrepreneurship 2015, Pradhan Mantri Kaushal Vikas Yojana Scheme and Skill Loan Scheme.
Intended to skilling 40.02 crore persons by 2022.
F) Digital India
Objective is to transform India into a digitally empowered society and knowledge economy
Based on three goals of digital infrastructure growth, delivering services digitally and digital literacy.
G) Defence offset policy
aims at acquisition and development of the state of the art technologies and create world class defence
production industry which should be able to meet both domestic and export requirements of the country.
option to migrate from the Offset obligations to 'Buy and Make.
H) FDI in retail
For FDI proposal beyond 51%, more than 30% value of goods from India.
At least 30% of value of procurement of manufactured / processed products from domestic small
industries.
I) GoI procurement
Govt. has made mandatory to procure 20% of overall procurement of products and services from MSEs.
J) Start-up India, Stand up India
promote bank financing for start-ups and offer incentives to boost entrepreneurship and job creation
will give a new dimension to entrepreneurship and help set up a network of start-ups in the country.

Small Industries Development Bank of India

OPTIMiSM

October
2015

General IIP
The Index of Industrial Production (IIP)
Growth (%) in Index of
Manufacturing
Industrial Production
(Base: 2004-05=100) logged a 3-year
Capital Goods
high growth of 6.4% in August 2015.
Consumer Durables
20.0
During April August 2015, the growth
15.0
was 4.1% as compared to 3% a year
10.0
ago.
5.0
High growth was seen noticeably in
0.0
capital good production by 21.8% in
-5.0
August and 7.4% in April Aug 2015
-10.0
indicating
rising
trend
in
capacity
-15.0
utilization
&
investment.
Consumer
Source - CSO
durables also increased by 17% reflecting
robust urban demand, probably driven by lower inflation and decline in interest rates.
The industries which have shown positive growth are Textiles; Wearing apparel;
dressing and dyeing of fur; Luggage, handbags, saddlery, harness & footwear;
tanning and dressing of leather products; Wood and products of wood & cork except
furniture; articles of straw & plating materials; Paper and paper products; Coke,
refined petroleum products & nuclear fuel; Chemicals and chemical products; Rubber
and plastics products; Basic metals; Fabricated metal products, except machinery &
equipment; Machinery and equipment n.e.c.; Electrical machinery & apparatus n.e.c.;
Motor vehicles, trailers & semitrailers; Other transport equipments and Furniture;
manufacturing n.e.c. Industries showing negative growth trends are Food products and
beverages, Tobacco products, Publishing, printing & reproduction of recorded media,
Other non-metallic mineral products, Office, accounting & computing machinery,
Radio, TV and communication equipment & apparatus, Medical, precision & optical
instruments, watches and clock.

Money and Credit Scenario

The gross money supply recorded a growth

of 11.04% in FY 2015 as compared to
13.20% in FY 2014. The year-on-year
growth rate of supply of money is headed
downwards showing a growth rate of 11%
during April September in the current FY
compared to 12.4% in the corresponding
period last year. This is indicative of a
situation with less degree of investment,
leaving lesser amount of money in the
hands of the consumers, thereby restricting
spending. Businesses cease to respond and
4

25.00

21.71 21.39
19.34

20.00
15.00

% growth in Money Supply

16.85 16.09
13.54 13.61 13.20
11.04

10.00
5.00
0.00

Source - RBI

Small Industries Development Bank of India

OPTIMiSM

Credit to MSEs
growth (%)

25.00
20.00
15.00
10.00
5.00
0.00
-5.00

Source - RBI
% of total NPA MSE to total MSE O/s by
Scheduled Commercial Banks
7
6

6.29
5.51

5.42

4.98
4.37

4.99

4.58

4
3
2
1
0
2009

2010

2011

2012

2013

2014

2015

Source - RBI

Inflation based on CPI (General)

Inflation based on Consumer Food Price Index (CFPI)
Inflation based on WPI (General)

8
6
4
2

-6

Source - RBI, Min. of Finance

Jul 15

Jun 15

May 15

Apr 15

Aug 15 (P)

-4

Mar 15

-2

Feb 15

0
Jan 15

30.00

Dec 14

Gross Bank Credit

Growth (%)

35.00

Nov 14

40.00

Oct 14

production decreases. The curtailed

business activity affects the demand of
labour adversely.
The gross bank credit as on August
22, 2015 increased by 8.2% as
compared to 10.2% during similar
period a year ago. The year-on-year
growth in non-food credit was 8.4%
on August 22, 2015 as compared to
10.2% in the corresponding date of
the previous year. It is expected to
grow in the coming months following a
decline in interest rate.
The gross bank credit to MSEs as on
August 22, 2015 stood at `7,918
billion, which is lower by 1.06% as
compared to gross bank credit to
MSEs as on March 20, 2015
(`8,003 billion).
Bad loans at public sector banks have
increased by 23.6% to `2.67 lakh
crore at the end of March 2015 from
`2.16 lakh crore a year ago. The
public sector banks have recovered
`41,236 crore (with an increase of
22.37%) during FY 2014-15 as
compared to `33,698 crore in the
previous fiscal year.
The total gross NPA of commercial
banks stood at `3.31 lakh crore for
the quarter ending June 2015. Gross
NPA ratio of the public sector banks
(PSBs) increased to 5.43% at the
end of March 2015 as compared to
4.72 % a year ago. Stressed assets
ratio, which is GNPA plus restructured
standard advances for the system,
stood at 10.9 %, as at the end of
March, 2015 as compared to 10 % in
March, 2014. Total stressed assets is
expected to rise to `5.3 lakh crore
by March 2016, from `4.7 lakh crore
in the previous year.

October
2015

Small Industries Development Bank of India

OPTIMiSM

October
2015

Inflation has fallen by half to around 5%, after hovering around 10% for several years
due to tight monetary policy, as well as the governments efforts to contain food
inflation, including by releasing buffer stocks of cereal and keeping agricultural
procurement prices in check.
CPI inflation rose to 4.41% year-over-year in September 2015 due to higher food
retail prices. CPI food inflation for the month rose nearly 4% over a year before, on
the back of poor rainfall.
As per Fourth Bi-monthly monetary policy of RBI, CPI inflation is expected to
average 5.5 per cent in 2016-17 and moderate to around 4.8 per cent in Q4 of
2016-17 (with a 70 per cent confidence interval of 2.6-7.0 per cent). The
baseline outlook, however, is subject to considerable uncertainties surrounding
commodity prices, monsoon and weather-related disturbances, volatility in seasonal
items and spillovers from external developments through exchange rate and asset
price channels.

Forex Market Behaviour

Exports during August 2015 were lower by 20.66% in dollar terms (15.22% in rupee
terms) as compared to August
% Growth rate in Exports
Exports
2014. The cumulative value of 45.00
and Imports
Imports
exports during April August 2015 40.00
registered a negative growth of 35.00
16.17% in Dollar terms (10.94% in 30.00
rupee terms) over the same period 25.00
last year. Imports during the month 20.00
was 9.95% lower in Dollar terms 15.00
(3.77% in rupee terms) over 10.00
5.00
imports
in
August
2014.
The
0.00
cumulative imports during April
-5.00 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
August 2015 registered a negative
Source - Min. of Commerce & Industry, DGCIS
growth of 11.61% in Dollar terms
(6.06% in rupee terms).
Import cover of foreign exchange reserves at US$ 341.4 billion in March 2015
increased to 8.9 months from 8.1 months in September 2014.
The top exports were Pearls, precious or semi-precious stones / metals and articles
thereof; imitation jewellery & coin, Textile and textile articles, Products of the
chemical or allied industries and Mineral Products.
The top commodities which were imported were Mineral products, Machinery &
their parts, electrical & electronic equipments, parts thereof, Pearls, precious or
semi-precious stones / metals and articles thereof; imitation jewellery & coin and
Products of the chemical or allied industries and Mineral Products.
6

Small Industries Development Bank of India

OPTIMiSM

October
2015

The trade deficit for April August 2015-16 improved to US$57.52 billion from
US$58.22 billion during the same period in last financial year.
According to National Association of Software and Services Companies (Nasscom),
India will is expected to witness about $6.5 billion (`42,300 crore) funding in
start-ups in 2015, as global investors look at investing in firms that build products
and solutions for the local market, while using them for emerging markets in Asia,
Africa and Latin America. India is the worlds third largest start-up hub.
Till October, global private equity (PE) and venture capital (VC) firms doubled their
investments to $4.9 billion (`31,900 crore) from $2.2 billion (`14,300 crore) in
179 Indian start-ups in 2014. Indian start-ups that received funding doubled to 400
in 2015. The investors had reaped returns in 2015, with exit value from start-up
investment touching $700 million.
India sees four start-ups emerge every day. Those who get funded get an average
valuation of $2.7 million and nearly two thirds of them are concentrated in
Bengaluru, Mumbai and the National Capital Region, Delhi.
The number of start-ups in India is set to cross 4,200 by the end of 2015. About
1,200 technology start-ups were incepted in India in 2015, of which more than 50
per cent were in the e-commerce, consumer service and aggregator space. Unlike in
the West, a majority of the Indian start-ups were focused on solving community
problems using technology solutions in health care, education, social platforms, hyper
local services and analytics. There are about 292 active angels and 156 active VC
and PE firms in the country.
The number of active investors has more than doubled from 220 in 2014 to 490
this year. Eight of the top-10 investing PE, VCs in India are foreign.
The number of accelerators and incubators has grown by 40 per cent over 2014 to
touch 110. India has also emerged as the youngest start-up country with the average
age of start-up founders at 28 years. 72% Indian start-up founders who are less
than 35 years old and makes India the youngest start-up nation.
The average weekly start-up funding is $95 million.

MSME Sector

A study by the IFC and McKinsey and Company (McKinsey) suggests that there
are close to 365-445 million micro, small, and medium enterprises in emerging
markets of which 25-30 million are formal SMEs and 55-70 million are formal micro
enterprises, while the rest (285-345 million) are informal enterprises. According to
the same study, close to 45 to 55% of the formal SMEs (11-17 million) in the
emerging markets do not have access to formal institutional loans or overdrafts
despite a need for one. The finance gap is far bigger when considering the micro
and informal enterprises; 65-72% of all MSMEs (240-315 million) in emerging
markets lack access to credit. The size of the finance gap varies widely across
regions and is particularly daunting in Asia and Africa.
7

Small Industries Development Bank of India

OPTIMiSM

In India, the total number of

working enterprises is 488.46 lakh
as at end of FY 2013 (increase
of 9.14%).
Growth in employment in MSME
sector was 4.98% (1114.29 lakh).
Market value of fixed assets of
MSMEs grew by 7.48%.
The
gross
value
of
MSME
manufacturing output recorded a
growth of 1.2%.
The share of MSME sector in
countrys GDP is 37.54% as at
end of FY 2013, contributed by
manufacturing
at
7.04%
and
services at 30.5%, respectively.

October
2015

Total GDP

Share of MSMEs
in total GDP (%)

Share of services sector in GDP

Share of manufacturing sector in GDP

80

35.41

36.12

36.05

36.69

37.97

35.13

37.54

27.4

27.6

28.6

28.6

29.3

30.7

30.5

7.73

7.81

7.52

7.45

7.39

7.27

7.04

70
60
50
40
30
20
10
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source - Min. of MSME

MSMEs have shown positive growth in terms of number of Enterprise Memorandum II filed with the District Industries
Centres across the country. As of
% growth in EM-II filed
2014, maximum number of EMs were
18.49
filed in Tamil Nadu (32%) followed
20.00
by Gujarat (16.15%), Uttar Pradesh
18.00
14.54
16.00
(12.49%) and Karnataka (7.15%).
12.38
14.00
Rajasthan
and
Tamil
Nadu
are
11.74
11.56
10.36
12.00
planning to bring in new policy for
10.00
MSMEs in order to give a greater
8.00
focus on promoting investment in the
6.00
MSME sector.
4.00
The Ministry of MSME, Government of
2.00
India launched an online portal for job
0.00
seekers in the MSME sector. The
2009 2010 2011 2012 2013 2014
portal - www.eex.dcmsme.gov.in - will
also help the industry to find skilled
Source - Min. of MSME
manpower.
The portal provides a
platform for skilled hands where they can find livelihoods.
As per RBI, lending to MSME entrepreneurs, especially in e-commerce space makes
a strong business case for the banks given the changing dynamics in the economy,
such as, demographic patterns; urbanization trends; increasing disposable income and
dependence on technology platforms; growth in internet user base and availability of
easy payment options.
Though 65% of the Indian population is below 35 years of age, only 2% of them
are skilled. The Centre plans to set up 500 incubation centres on PPP model across
the country in the next one year to create more skilled professionals. These
incubation centres will provide technical knowledge to them to make them skilled
professionals or entrepreneurs. The government also plans to add 15 more tool
rooms to the existing 18 by next year.
Aiming to offer young students a skill development course based on the Tizen
operating system (OS) platform, Samsung India and the Ministry of MSME joined
hands to open MSME-Samsung Digital Academy. The company will offer the Digital
Academy course in collaboration with the ministry and will seek to train youth to
develop apps that run on the Tizen OS across a multitude of devices such as
smartphones, televisions and tablets. In its first phase, the Samsung Digital Academy
8

Small Industries Development Bank of India

OPTIMiSM

October
2015

will be rolled out across the 10 MSME-Samsung Technical Schools which have been
set up by Samsung and the Ministry. The programme will eventually be scaled up to
include 68 other MSME Technical Centres across the country, as well as Indian
Institutes of Technology (IITs), Indian Institutes of Information Technology (IIITs),
National Institutes of Technology (NITs), and other key institutes of technical
education and engineering in India.
As on March 31, 2013 and 2014, Scheduled Commercial Banks (SCBs) have
recorded a y-o-y growth of 30.23% and 23.85% respectively in the amount of
outstanding credit to the MSE sector as against the target of 20%. However, as on
March 31, 2015, they could register a y-o-y growth of 13.56% only over March
2014. The share of Public Sector Banks in the total outstanding credit to MSEs by
Scheduled Commercial Banks stood at 72.79% as on March 31, 2015 which
marginally declined from 72.86% as on March 31, 2014.
As per the World Banks report on Ease of Doing Business, Gujarat has emerged
as the best state followed by Andhra Pradesh, Jharkhand, Chhattisgarh and Madhya
Pradesh. The next 5 slots are occupied by Rajasthan, Odisha, Maharashtra,
Karnataka and Uttar Pradesh.

Recent initiatives of SIDBI

SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises (SMILE)

Objective is to make available soft loan, in the nature of quasi-equity to meet the required debt-equity
ratio and term loan on relatively soft terms for establishment of an MSME, as also for pursuing
opportunities for growth for existing MSMEs.
Total corpus `10,000 crore.
Proposals aggregating about `136 crore have been sanctioned under the scheme.

India Aspiration Fund (IAF)

A Fund of Funds managed by SIDBI with a corpus of `2,000 crore to give boost to the start-up Venture
Capital ecosystem in the country.
Total sanction under the fund `442.50 crore.

Make in India Fund

Launched to give phillip to MSME manufacturing sector with a corpus of `1,000 crore to make our
MSMEs world class manufacturing hub.
Under the fund, concessional finance will be provided to identified MSME sectors.

MoU with Snapdeal

SIDBI signed an MoU with Snapdeal, an e-commerce major in India, to provide financial
support to its MSME vendors. This will address the problem of lack of required financial
assistance and will help in scaling up their online business.

Small Industries Development Bank of India

OPTIMiSM

October
2015

Policy Snippets
(a)

Fourth Bi-monthly Monetary Policy Statement, 2015-16 (Extract):

On the basis of an assessment of the current and evolving macroeconomic situation, it has
been decided by government to:
reduce the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points
from 7.25% to 6.75% with immediate effect.
keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 % of net demand
and time liability (NDTL);
continue to provide liquidity under overnight repos at 0.25% of bank-wise NDTL at the
LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to
0.75% of NDTL of the banking system through auctions; and
continue with daily variable rate repos and reverse repos to smooth liquidity
Consequently, the reverse repo rate under the LAF stands adjusted to 5.75%, and the
marginal standing facility (MSF) rate and the Bank Rate to 7.75%.

(b)

Small finance banks are expected to lend significantly in the `50,000-10 lakh range, filling a
gap left by MFIs and banks and NBFCs as microfinance is available only up to a total of `1
lakh while banks and NBFCs typically do not lend in the `1-10 lakh range.. Essentially, this
is the same target group for the Micro Units Development and Refinance Agency (MUDRA).
While small finance banks are a new category of lenders permitted by the Reserve Bank of
India (RBI), MUDRA is a government initiative. Apart from other prudential norms that
apply to scheduled commercial banks, small finance banks must ensure that loans up to `25
lakh make up 50% of their portfolio.

(c)

IDFC Bank became the 91st scheduled commercial bank in India, which will scale up its rural
banking portfolio to a size of `10,000-15,000 crore in five years. Home loans will be the
main focus to grow the loan book, along with vehicle loans and small business loans for
womens self-help groups in rural areas. Infrastructure financier IDFC Ltd and microfinance
company Bandhan had received in-principle approvals from the Reserve Bank of India (RBI)
in April 2014, allowing them to commence banking operations within 18 months.

(d)

Ministry of MSME, Govt. of India has

introduced a one-page simple registration form
for online filing of Udyog Aadhaar
Memorandum (UAM) replacing filing of
Entrepreneurs Memorandum Part I & II in
order to promote ease of doing business for
MSMEs. The filing of UAM can be done on
http://udyogaadhaar.gov.in.

10

Salient features of UAM are:

Registration is online & userfriendly.
UAM can be filed on selfdeclaration basis.
No documentation required
No fee for filing.
File more than one Udyog Aadhaar
with same Aadhaar Number.

Small Industries Development Bank of India

OPTIMiSM

October
2015

Overview of Indian Economy

Indicators

FY 1011
8.4

FY 1112
6.7

FY 1213
4.9

FY 1314
6.6

i. Agri & Allied (% growth)

(% age share)

7.0
(14.5)

5.0
(14.6)

1.2
(17.7)

3.7
(17.2)

ii. Industry (% growth)

(%age share)

7.2
(27.8)

7.8
(27.9)

2.4
(32.3)

4.5
(31.7)

6.1
(31.4)

iii. Services (% growth)

(%age share)
GDP at current prices (` trillion)
GDP at current prices@
(USD trillion) (1 USD = INR 66.54)
Per capita Net National Income (` at
current prices)
Growth in Index of Industrial
Production
General (%)
Mining (%)
Manufacturing (%)
Electricity (%)

9.3
(57.7)
76.7
1.7

6.6
(57.5)
89.1
1.8

8.0
(50.0)
99.88
1.5

9.1
(51.1)
113.45
1.7

10.2
(52.5)
125.41
1.88

58534

64316

71593

80388

88533

NA

7.8
5.9
8.1
5.6

8.2
5.2
8.9
5.5

1.1
-2.3
1.3
4.0

(-)0.1
(-)0.6
(-)0.8
6.1

2.8
1.4
2.3
8.4

4.1
1.2
4.6
3.2
(as on
August
2015)

Inflation WPI - 52 weeks average

Export Growth (%)
Import Growth (%)
Forex Reserve (USD billion)

9.6
37.6
21.6
305

6.89
20.94
32.33
294

5.96
-1.1
0.54
261

5.7
4.71
-8.5
276

Gross Fiscal Deficit as % of GDP

4.79

5.84

4.91

4.43

Current Account Deficit as % of GDP

Total FDI Inflow (in $ billion)

2.7
34.84

4.2
21.86

4.7
19.81

1.7
23.77

-2.3
-1.54
-0.6
317 350.81
(as on
Oct. 02,
2016)
4.09 3.94
(E)
1.3 1.5 (E)
34.87 NA

Net FII Inflow (in $ billion)

29.42

39.03

46.71

28.69

75.72 NA

44.6823

51.0109

54.3303

59.9376

GDP Growth (%)

Forex Rate (Rs. Per US$)

Source Ministry of Finance; RBI; MoSPI; DIPP, Min. of Commerce & Industry;

11

FY 14- FY 1515
16
7.2 7.5 -7.9
(PE)
(PE)
0.2
(16.1)

62.4018

64.81 (as
on Oct.
15, 2015)

Small Industries Development Bank of India

OPTIMiSM

October
2015

MSMEs AT A GLANCE
(As per 4th MSME Census)
S.No.
1.

Economic Parameters
No. of Enterprises (lakh)

2006-07
Registered
16 (6%)

Break up of No. of enterprises in Micro,

Small and Medium
Micro Enterprises

Total
261
(100%)

488

14.85
(94.9%)
0.76
(4.89%)
0.03
(0.17%)

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

Break up of No. Of enterprises in

Manufacturing and Services
Manufacturing
Service

10 (67%)
5 (33%)

64 (26%)
181 (74%)

75 (29%)
186
(71%)

Break up in terms of ownership

Socially backward classes (SC/ST/OBCs)

8 (50%)

126 (51%)

Others

8 (50%)

120 (49%)

92 (17%)

503 (83%)

134
(51%)
127
(49%)
595
(100%)

65.34
(74.19%)

N.A.

N.A.

23.43
(24.17%)
4.32
(4.64%)

N.A.

N.A.

N.A.

N.A.

Break up of No. Of enterprises in

Manufacturing and Services
Manufacturing

80 (87%)

224 (45%)

Service

12 (13%)

278 (55%)

304
(51%)
291
(49%)

Male

73 (80%)

413 (82%)

Female

19 (20%)

90 (18%)

5.75
8
2.4

2.04
3.5
1.53

486
(82%)
109
(18%)
2.27
4.05
1.56
7.44

Small Enterprises
Medium Enterprises

2.

2013-14
Unregistered
246 (94%)

Employment (lakh)
Break up of No. of enterprises in Micro,
Small and Medium
Micro Enterprises
Small Enterprises
Medium Enterprises

1114

Break up in terms of ownership

3.

4.
5.
6.
7.
8.

Average Employment per unit (Number)

Manufacturing
Service
Share in GDP (%)
Share in Exports (%)
Fixed Investment (` crore)
Employment per `1 lakh investment in
Fixed investment
Break up of No. of enterprises as per
source of Finance
No Finance/Self Finance

5,00,758
0.19
15 (6%)

246 (94%)

14 (88%)

229 (93%)

Institutional Sources 2 (11%)

Non-Institutional Sources 0.16 (1%)
Source: 4th Census on MSME, Ministry of MSME
12

12 (5%)
5 (2%)

261(100
%)
242
(93%)
14 (5%)
5 (2%)

2.28
37.54
(2012-13)
40%
13,63,700
-

Small Industries Development Bank of India

OPTIMiSM

October
2015

Industry-wise Deployment of Gross Bank Credit

Outstanding in Rs. Billion
Sr.No

Industry

2.1

Mining & Quarrying (incl.

Coal)
Food Processing
Sugar
Edible Oils & Vanaspati
Tea
Others
Beverage & Tobacco
Textiles
Cotton Textiles
Jute Textiles
Man-Made Textiles
Other Textiles
Leather & Leather
Products
Wood & Wood Products
Paper & Paper Products
Petroleum, Coal Products
& Nuclear Fuels
Chemicals & Chemical
Products
Fertiliser
Drugs & Pharmaceuticals
Petro Chemicals
Others
Rubber, Plastic & their
Products
Glass & Glassware
Cement & Cement
Products
Basic Metal & Metal
Product
Iron & Steel
Other Metal & Metal
Product
All Engineering
Electronics
Others
Vehicles, Vehicle Parts &
Transport Equipment
Gems & Jewellery
Construction
Infrastructure
Power
Telecommunications
Roads
Other Infrastructure
Other Industries
Industries

2.2
2.2.1
2.2.2
2.2.3
2.2.4
2.3
2.4
2.4.1
2.4.2
2.4.3
2.4.4
2.5
2.6
2.7
2.8
2.9
2.9.1
2.9.2
2.9.3
2.9.4
2.10
2.11
2.12
2.13
2.13.1
2.13.2
2.14
2.14.1
2.14.2
2.15
2.16
2.17
2.18
2.18.1
2.18.2
2.18.3
2.18.4
2.19

Mar.21,
2014

Mar.20,
2015

Aug.21,
2015

Variation (Year-onYear)(%)
Aug. 22,
Aug.21,
2014 /
2015/
Aug. 23,
Aug.22,
2013
2014
17.69
-13.97

Variation (Financial
Year)(%)
Aug. 22
Aug.21,
2014/
2015 /
Mar.21,
Mar.20,
2014
2015
7.65
-7.67

358.45

359.51

331.94

1462.54
344.66
212.93
32.41
872.53
182.85
2022.13
1007.07
19.98
215.60
779.47
102.08

1714.95
414.11
210.64
31.96
1058.24
186.48
2019.18
1000.45
22.36
203.57
792.81
102.48

1542.99
362.01
180.76
30.11
970.12
174.74
1968.03
972.11
21.35
206.39
768.17
99.90

19.16
7.75
6.74
-4.89
28.98
18.53
5.59
4.39
2.16
0.88
8.50
11.52

7.86
4.80
-4.18
1.21
11.92
-5.85
1.50
2.02
0.14
5.95
-0.23
-0.23

-2.18
0.22
-11.40
-8.22
-0.66
1.50
-4.11
-5.38
6.71
-9.65
-1.23
-1.91

-10.03
-12.58
-14.18
-5.78
-8.33
-6.30
-2.53
-2.83
-4.51
1.39
-3.11
-2.51

94.23
328.20
648.40

98.31
340.66
561.45

101.01
342.19
432.20

13.68
8.48
-4.83

7.21
3.65
-21.38

-0.01
0.59
-15.22

2.74
0.45
-23.02

1663.36

1544.87

1520.32

-4.69

1.33

-9.80

-1.59

305.90
486.55
421.87
449.03
370.72

253.96
492.95
330.75
467.22
377.73

218.08
510.54
341.89
449.80
363.84

1.77
-11.15
-16.89
12.95
13.61

-7.78
7.72
-0.34
0.66
-0.54

-22.69
-2.59
-18.68
-0.49
-1.32

-14.13
3.57
3.37
-3.73
-3.68

87.04
539.33

88.38
560.38

85.33
559.69

13.36
9.21

-2.93
4.54

1.00
-0.74

-3.45
-0.12

3607.81

3853.89

3874.76

7.36

9.99

-2.35

0.54

2673.98
933.83

2834.28
1019.61

2867.73
1007.03

5.07
14.64

9.31
11.98

-1.89
-3.69

1.18
-1.23

1463.61
346.75
1116.86
665.33

1540.06
367.90
1172.15
682.09

1535.92
375.89
1160.03
680.34

5.65
12.51
3.67
4.75

5.69
8.17
4.91
3.93

-0.71
0.22
-1.00
-1.61

-0.27
2.17
-1.03
-0.26

698.89
625.71
8363.57
4869.02
882.04
1578.59
1033.91
1880.60
25164.83

718.19
743.03
9245.31
5575.67
918.90
1686.91
1063.83
1839.34
26576.27

708.94
731.17
9410.81
5768.93
899.19
1703.54
1039.15
1773.39
26237.51

0.30
32.31
11.29
15.44
-5.15
10.68
7.79
-3.87
7.77

3.51
1.66
8.20
10.59
7.10
6.26
0.13
0.61
4.95

-2.00
14.95
3.99
7.14
-4.81
1.56
0.37
-6.27
-0.66

-1.29
-1.60
1.79
3.47
-2.14
0.99
-2.32
-3.59
-1.27

Source RBI

13

Small Industries Development Bank of India

OPTIMiSM

October
2015

Credit flow to MSME sector

(No. of A/c. in lakh) (Amount in ` crore)
Year
Last Friday of
March 2012
March 2013
March 2014
March 2015 (P)
As on Aug 21,
2015

Micro
No. of A/c
Amount

Small
Medium
MSME
No. of Amount No. of Amount
No. of
Amount
A/c
A/c
A/c
83.42
217773
15.16 309912
0.93 153621
99.51
681306
(8.11)
(8.57)
-(0.75)
(6.68)
93.81
281258
18.05 405951
1.19 181815
113.05
869024
(12.46)
(29.15)
(2.93)
(18.2)
(18.35)
(0.01)
(20.88)
106.67
354813
18.93 496279
0.84 188838
126.44 1039930
(13.71)
(26.15)
(0.79) (13.14)
(3.86)
(0.01)
(14.86)
120.15
428501
18.11 537977
0.93 229595
139.19 1196073
(12.64)
(20.77)
-(0.65)
(4.9)
(21.58)
(0.02)
(11.20)
NA
NA
NA
NA
Gross Bank Credit to MSEs - `791800 crore

Source: RBI, Min. of MSME

Note: Figs. in brackets indicate Y-o-Y % growth/decline

NPAs in MSEs in Scheduled Commercial Banks

(Amount in ` crore)
Year
ended
March

Total
MSE

Micro
Gross
Enterprises NPA in
SCBs

NPAs as
% of loan
assets.

NPA in
MSE

2009

257361

99431.98

683280

2.45

% of NPA % of NPA in
NPA in
% of NPA in
in MSE to MSE to total
Micro
Micro
total NPAs MSE O/s. Enterprises Enterprises to
of SCBs
total MSME
O/s.
13944.59
2.04
5.42
8035.76
3.12

2010

364001

149545.8

846980

2.51

20067.09

2.37

5.51

11885.34

3.27

2011

485942

200528.9

979000

2.36

21258.54

2.17

4.37

12686.96

2.61

2012

528616

217773

1429030

2.94

26312.99

1.84

4.98

13078.82

2.47

2013

687208

281258.3

1940740

3.42

31477.96

1.62

4.58

16825.95

2.45

2014

851092

354813.2

2641950

4.1

42428.79

1.61

4.99

19583.01

2.3

2015

966478

428501.3

NA

4.45

60749.27

NA

6.29

26784.74

2.77

Source RBI

14

Small Industries Development Bank of India

OPTIMiSM

Disclaimer

Chief Editor Shri Rabindra Kumar Das, Chief General Manager

Assistant Editor Shri Ramakanta Patra, Manager

Notes for writers

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October
2015

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reproduce them on CDs.
Copyright of all articles published in the magazine belongs
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15