Maharashtra has recorded the highest growth rate of over 129 per cent in terms of registration of MSMEs under Entrepreneurs Memorandum part-II
In the era of competitive and co-operative federalism, Maharashtra and Gujarat continue to be the favoured destinations. Maharashtra has outranked Gujarat with highest growth in entrepreneurs memorandum (EM) part-II filed by micro, small and medium enterprises (MSMEs), while Gujarat has performed very well in parameters such as 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, while Assam and Tripura bagged this within the northeastern states and Himachal Pradesh in Himalayan states.
These are the findings of a comprehensive report titled 'Manufacturing excellence and emergence in India' prepared by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). The report was released on Tuesday.
Maharashtra has recorded the highest growth rate of over 129 per cent in terms of registration of MSMEs under Entrepreneurs Memorandum part-II.
It grew from 16,136 in FY13 to 36,992 in FY15. Interestingly, Uttar Pradesh, which has seen change of guard in the recent assembly election, ranked second in this behalf with about 69 per cent growth followed by Tamil Nadu (57 per cent), Goa (55 per cent) and West Bengal (47 per cent).
Gujarat registered a fall of 6% as the number of MSME registrations fell to 64,160 in FY15 from 68,235 in FY13, dropping it to the 14th spot in terms of growth in EM II.
Further, ASSOCHAM said Maharashtra also 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.
It also 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.
However, the report suggests that Maharashtra needs to focus more towards improving capacity utilisation, where it ranks 8th, and efficiency (11th rank).
Gujarat has 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 such as factor productivity (15th rank) and fixed capital income ratio (16th rank).
The ASSOCHAM 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 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 to the Union Government to develop a strong plan to prioritise speeding-up the process by creating a target-oriented roadmap,'' said DS Rawat, secretary general of ASSOCHAM.
EM-II RANKING
MSMEs: Gujarat falls by 6% as the number of registrations falls to 64,160 in FY15 from 68,235 in FY13. It ranks 14 in terms of growth in EM II
Maharashtra grew by over 129 per cent from 16,136 in FY13 to 36,992 in FY15. It ranks first
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