The latest survey undertaken to map the Micro, Small and Medium Enterprises (MSMEs) sector by the state government reveals that close to 1,000 units have shut shop across Gujarat in the last couple of years, official sources said.
The preliminary data from the sample survey consisting of about 15,000 units suggests that over 5% of MSMEs in Gujarat have closed down, which is higher than the closure rate of 4.5% recorded in the last sample survey conducted in 2010.
“Most of the closures seem to the have happened in Surat where textiles, IT-enabled services and transport are the most affected”, said a government official seeking anonymity.
As per the latest government figures, Surat is the biggest hub of MSMEs in the state with about 75,000 units, followed by Ahmedabad (47,000), Rajkot (14,000) and Vadodara (8,000)
“Across the state, the maximum closures have happened in the service sector,” the official said while talking about the iNDEXTb survey which covered almost 10% of the 1.78 lakh registered MSME units in the state. iNDEXTb is the government arm organising the Vibrant Gujarat Global Investors’ Summits.
Portions of the survey are expected to be highlighted during this Vibrant Gujarat summit on January 11-13 where MSMEs will be one of the focus areas. The data collection for the survey has been completed and is being complied for the preparation of a detailed report.
According to officials, a detailed report on the MSME survey will also assess the progress of industries with reference to number of units, persons employed, amount of investment and value of production.
As per Centre’s figures, micro units that have investments up to Rs 25 lakh, constitute 85% of the total MSME units in Gujarat. Small units having investments between Rs 25 lakh to Rs 5 crore form 14% of MSMEs, while the medium units (Rs 5-10 crore) form 0.61% of the sector.
As on March 2012, the maximum number of MSME units registered (about 46,000) are involved in manufacturing of textiles, apparel, dressing and dyeing of fur. Manufacturing of machinery and equipment (13,000 units), chemical and chemical products (7,000), fabricated metal products (7,500) and wholesale trade and commission trade (13,000) are some of the areas of operations of the sector.
“MSMEs are the single largest employment generator in Gujarat. Compared to large-scale industries, MSMEs can generate five times more employment,” said Bhagyesh Soneji, chairperson of the Gujarat council of Assocham, an industry body which earlier this year conducted a survey