The Hindu Business Line : Fewer small units close shop, but more report sick: Survey

New Delhi, Sept 2 Closure amongst registered Micro, Small and Medium Enterprises (MSMEs) has decreased to 21.64 per cent in 2006-07 from 39 per cent in 2001-02.

The number of sick units, however, has increased marginally to 14.47 per cent in 2006-07 from 13.98 per cent because of lack of demand and a shortage of working capital.

These were highlights of the Fourth All-India MSME Census for 2006-07, released by the Ministry of MSMEs on Tuesday.

According to the Ministry, the census of all registered units was conducted by the Office of the Development Commissioner (MSME), while the census for un-registered units was conducted by the Central Statistical Organisation. According to the survey, there are a total of 2.61 crore MSMEs, the bulk (2.46 crore) of which are unregistered, while 0.15 crore are registered. Out of these, 72 per cent are in the services sector, while 28 per cent are into manufacturing.

Total employment, according to the survey, stands at 5.97 crore people. Out of the total, 5.03 crore belong to the unregistered units and 0.95 crore to registered units.

Annual reports

In an interaction with the media earlier this week, Mr Dinsha J. Patel, Minister of State for MSMEs, had said that the full census report would be out by the second week of September. It had also said that the report, which till now came out in gaps of four years, would be made an annual exercise.

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