Maharashtra has logged the highest growth in entrepreneur registrations, pipping Gujarat which has outperformed other industrial parameters.
Maharashtra has recorded highest growth rate of over 129% in terms of registration of micro, small and medium enterprises (MSMEs) under entrepreneurs memorandum (EM) part-II – from 16,136 in FY13 to 36,992 in FY15.
EM is an application for acknowledgement of a unit.
These are the findings of a ‘Manufacturing excellence and emergence in India’ report by industry chamber Assocham.
Uttar Pradesh ranked second with about 69% growth followed by Tamil Nadu (57%), Goa (55%) and West Bengal (47%).
Gujarat registered a fall of 6% in MSME registrations to 64,160 in FY15 from 68,235 in FY13, ranking ranked 14th in terms of EM II growth.
Gujarat has performed extremely well on parameters such as the change in capacity utilisation, operational ratio, value addition and input cost.
Karnataka has emerged as the best state in manufacturing excellence in the mainstream states category, Assam and Tripura in northeastern states and Himachal Pradesh in Himalayan states.
The Assocham report said Maharashtra performed decently well on various parameters with third highest ratio in terms of change in return on capital, operational ratio, value addition and input cost.
Besides it is ranked fifth in terms of change in total factor productivity, fixed capital income ratio and in terms of growth in manufacturing gross value addition (GVA) in FY15 over FY13.
The report said Maharashtra needs to focus more towards improving capacity utilisation (8th rank) and efficiency (11th rank).
As far as Gujarat is concerned, it has also performed decently with fourth and fifth position in terms of change in return on capital and efficiency respectively. However, Assocham said Gujarat will have to focus on improving growth in manufacturing GVA (8th rank) and in filing of memorandum by entrepreneurs (14th rank). Besides, improvement is also needed on fronts like factor productivity (15th rank) and fixed capital income ratio (16th rank).
The industry chamber had considered various parameters such as number of factories, output value, working capital, net fixed capital formation, fixed capital, finished goods, capital invested, total inputs and others to ascertain the states’ performance in terms of the manufacturing sector.
“Considering that majority of investment projects in the manufacturing sector are stuck in different stages of implementation, we at Assocham have time and again suggested the Union government to develop a strong plan to prioritise speeding-up the process by creating a target-oriented roadmap,” said D S Rawat, secretary general, Assocham.
Entrepreneurial Spirit
- Gujarat registered a fall of 6% in MSME registrations at 64,160 in FY15 from 68,235 in FY13
- UP ranked second with about 69% growth followed by TN (57%), Goa (55%), West Bengal (47%)
Source: DNA India
