FRESH INVESTMENT IN ASSAM MAY GENERATE ONE LAC DIRECT & INDIRECT JOBS, SAYS MSME EPC STUDY
The study brought out by the MSME Export Promotion Council jointly with knowledge firm BillMart FinTech has revealed that Assam is increasingly emerging as an epi-centre for investment, both for the government and private sector, and during the current FY year, may generate over one lac, direct & indirect jobs, provided the Covid subside.
The study presented to the State government says, most of the private investment is flowing in the agro-industries such as food processing, horticulture, organic, micro, small and medium enterprises, and petroleum based units. These sectors generate more jobs, and promote start-ups, ensure inclusive growth and sustainable livelihood.
Sharing the highlights of the study at the press conference here today, the MSME EPC Chairman, Dr. D S Rawat, BillMart FinTech, Co-Founder & CEO, Mr. Jigish Sonagara and Co-Founder & COO Mr. Sandeep Doshi said, the two-organizations will voluntarily be enhancing entrepreneurial skill, up-date the knowledge on various policies as well as incentives available, train manpower on application of technologies to multiply growth of their businesses.
The two organizations will also hold Assam Women Entrepreneurs Conclave and 2nd Start and Stand-Up North East with participation from ASIAN and BIMSTEC countries with a view to promote women entrepreneurship in the State.
BillMart FinTech will connect and facilitate businesses free of cost on how to get promptly the competitive credit and help with the use of technology with a view to mitigate the hardships they are facing. The two organizations will also be signing memorandum of understanding (MoU) in this regard with various associations and government bodies dealing with the MSMEs sector in the state.
The study observed that in the year 2018-19, Assam attracted new investment projects worth Rs. 116202.6 million and completed the projects worth Rs.153351.6 million. In 2019-20 the new projects were worth of Rs.32338.4 million, the completed projects were worth Rs.74478.3 million and in 2020-21, Rs.6902.3 million projects were received and the projects completed were worth Rs.33986.6 million. Once the projects are speeded up, direct/indirect jobs will be generated in large number.
It was mentioned that 3 pending investment projects worth Rs 1832.7 million were also revived in 2018-19, 5 in 2019-20 of Rs 615 million and one project was revived in 2020-21.
According to the CMIE data, total number of investment projects outstanding in 2018-19 were worth of Rs.2606752.5 million, 2019-20 worth Rs. 2599740.5 million and in 2020-21 worth Rs 2468694.2 million.
On the other hand, the investment projects under implementation in 2018-19 were worth Rs2175112 million, 2019-20 worth Rs 2146926.6 million and in 2020-21 worth Rs 2171097.7 million. Rawat suggested setting up of a high powered committee headed by the Chief Minister to expedite the clearances and implementation of the projects to avoid the escalation in the cost.
The study found that the MSME sector is the fastest growing sector in Assam in terms of output, investment, number of units and employment generation. This sector is dominant in the state as compared with other North Eastern States because 61.48% of the MSMEs units are concentrated in Assam and the rest 38.52% are located in the rest of the States of the NER. The study published by Journal of Development Economics and Management Research Studies in 2020 says 51.5% of fixed investment, 6.2% of output and 55.12% of employment of entire NER is shared by Assam.
There are approximately over 67,000 a number of industries in Assam, out of which 88% micro, 11.5% is small and medium. Recently, the centre government has sanctioned over Rs. 1536 crore for setting up of the micro, small and medium enterprises under the Atmanirbhar Bharat Abhiyan.
The two institutions feel, there exists enormous threats and challenges for the survival and growth of MSMEs. The rate of growth occupation and wealth in Assam cannot pace with this high rate of population growth creating problems of unemployment, poverty and inequality of income in the region. It has been observed that the biggest challenge to the MSMEs is unavailability of timely capital and as a result they suffer from either shrinking of operations or liquefying the enterprise itself. However, the liquidity can be solved if there is an alternate mechanism to organize timely competitive credit, said Mr. Sonagara.
Therefore, to help the micro, small, medium and start-up enterprises the BillMart has launched a MSME GAIN (Growth and Intelligence Network) with a vision to benefit one crore MSMEs with 100 crores hours of knowledge up-gradation by 2024 throughout the country. Mr. Doshi further added that MSME GAIN is a new world for knowledge with the latest information, articles, videos, events, training, networking, and everything about businesses, connecting smart MSMEs for growth.
The MSME EPC chairman Mr. Rawat said the EPC has created a special division on North-East Economic Development in the secretariat to attract and advocate for investing in the northeastern region, provide entrepreneurial skill training use of technology, facilitate marketing and connecting with technology institutions globally.