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Industry Session 5 - Class Slides

The document discusses the Indian industry, highlighting its contribution of 30% to Gross Value Added (GVA) and its relatively small share in global manufacturing. It emphasizes the importance of the MSME sector, which employs over 23 million people, and notes the financial support initiatives aimed at aiding MSMEs. Additionally, it addresses challenges faced by the industry, including infrastructure issues and high financing costs.

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ktprashant7
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28 views13 pages

Industry Session 5 - Class Slides

The document discusses the Indian industry, highlighting its contribution of 30% to Gross Value Added (GVA) and its relatively small share in global manufacturing. It emphasizes the importance of the MSME sector, which employs over 23 million people, and notes the financial support initiatives aimed at aiding MSMEs. Additionally, it addresses challenges faced by the industry, including infrastructure issues and high financing costs.

Uploaded by

ktprashant7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Industry Session 5

Slides used by Deeparghya Mukherjee for the Indian Economy


Course, IIM Nagpur
What is Industry?
• activity concerned with the processing of raw materials and
manufacture of goods in factories.
• Also used as a generic term
• American Industry
• British Industry
• Indian industry

Slides used by Deeparghya Mukherjee for the Indian Economy


Course, IIM Nagpur
Slides used by Deeparghya Mukherjee for the Indian Economy
Course, IIM Nagpur
Industry
• 30% of GVA
• Various components
• Small to large companies in various products
• Manufacturing: India has a 2.8% share in global manufacturing vs
China’s 28.8%

Slides used by Deeparghya Mukherjee for the Indian Economy


Course, IIM Nagpur
Slides used by Deeparghya Mukherjee for the Indian Economy
Course, IIM Nagpur
Slides used by Deeparghya Mukherjee for the Indian Economy
Course, IIM Nagpur
Slides used by Deeparghya Mukherjee for the Indian Economy
Course, IIM Nagpur
MSME
• “lifeblood of the Indian economy”
• 46% decline in business during Covid
• Contribution of the MSME sector to overall GVA rose from 29.3 per cent in
FY18 to 30.5 per cent in FY20,
• the economic impact of the pandemic caused the sector’s share to fall to 26.8 per cent in
FY21.
• MSMEs employ 23.24 crore people, making them the second-largest
employment generator after agriculture
• Digital transformation
• The Udyam Registration Portal and Udyam Assist Platform (UAP) have formalized
over 2.39 crore informal micro-enterprises, enabling easier access to credit and
benefits
Slides used by Deeparghya Mukherjee for the Indian Economy
Course, IIM Nagpur
Financial Support to MSMEs
• Financial support initiatives include
• revamped Credit Guarantee Scheme (CGTMSE) with ₹9,000 crore
corpus,
• Self-Reliant India (SRI) Fund with ₹50,000 crore, and
• TReDS for faster payments. Delayed payments to MSMEs are being
tackled via the MSME SAMADHAAN & CHAMPIONS portal

Slides used by Deeparghya Mukherjee for the Indian Economy


Course, IIM Nagpur
Slides used by Deeparghya Mukherjee for the Indian Economy
Course, IIM Nagpur
Slides used by Deeparghya Mukherjee for the Indian Economy
Course, IIM Nagpur
Poor performance
• Possible reasons
• Infrastructure
• High financing costs
• Inadequate quality power
• Limited design capabilities/ neglect of R&D
• Inadequate skilled labour
Comparative disadvantage at 8.5% to 11%

Slides used by Deeparghya Mukherjee for the Indian Economy


Course, IIM Nagpur
Slides used by Deeparghya Mukherjee for the Indian Economy
Course, IIM Nagpur

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