Panel suggests flexible labour laws to boost SME sector
Hotline: 1800 102 2007
X
Search Business Opportunities
2013-11-19

Panel suggests flexible labour laws to boost SME sector

The inter-ministerial committee (IMC), headed by Micro, Small and Medium Enterprises (MSME) Secretary Madhav Lal, has submitted its report to Cabinet Secretary Ajit Kumar Seth that suggested flexible labour laws and simplified taxation system, among other things, to improve manufacturing in SME sector.\r\n

The inter-ministerial committee (IMC), headed by Micro, Small and Medium Enterprises (MSME) Secretary Madhav Lal, has submitted its report to Cabinet Secretary Ajit Kumar Seth that suggested flexible labour laws and simplified taxation system, among other things, to improve manufacturing in SME sector.

 


The panel was set up to look into issues faced by MSME units and suggest ways to boost manufacturing in the sector. Besides flexible labour laws, the committee also suggested ensuring easy flow of credit to the sector, simplified taxation system, improved infrastructure and effective marketing techniques for improving manufacturing activities in the sector, a senior official said.

 


The MSME sector has been witnessing a slow growth phase with its share of exports falling from 40 percent to 36 percent in the last two years, official said. Also, exiting unviable units is a cumbersome procedure for entrepreneurs as the existing insolvency laws do not support them.
 

 

The MSME Ministry, however, expects that the trend would change if necessary steps are initiated.  The share of MSMEs is targeted to increase up to 50 percent in the country's total exports during the 12th Plan (2012-17).
 

 

The MSME sector contributes over 8 percent to India's GDP and accounts for 45 percent of manufacturing sector. There are about 3.6 crore such MSMEs, employing over 8 crore people.
 

 

The country's manufacturing sector, which constitutes over 75 percent of the index of industrial production (IIP), grew meagre by 0.6 percent in September as against a decline of 1.6 percent a year ago.
 

Related opportunities
  • Booking & Accomodation
    About Us: Launched in 2013, OYO is India’s largest hospitality company...
    Locations looking for expansion Delhi
    Establishment year 2013
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 3000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi Delhi
  • Snacks / Namkeen shops
    About:     Started in India’s IT city Bengaluru, ‘Shake It Off’ is..
    Locations looking for expansion Karnataka
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Casual dine Restaurants
    About Us Manbhavan means ‘pleasing mind’ and we do it by..
    Locations looking for expansion Maharashtra
    Establishment year 2015
    Franchising Launch Date 2017
    Investment size Rs. 50lac - 1 Cr.
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • Multi Cuisine Restaurant
    About: India Kitchen is one of the most popular and immensely..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts