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land in the various Industrial Parks of KINFRA with total committed investment of Rs.1363 crore with Industry and Labour
direct employment of 32019. KINFRA has also implemented a Single Window Clearance system
in all the Parks. The Single Window Clearances system operating in the Parks are helping the
investors to establish their units without any hassles.

3.28 Government of Kerala has nominated KINFRA as the Nodal agency for State Food Processing
Mission in Kerala. KINFRA also act as the Nodal Agency of the State for implementing “Assistance
to States for Infrastructure Development of Exports and Allied Activities” (ASIDE) of Department of
Commerce, Government of India. Government of Kerala has appointed KINFRA as the Nodal Agency
for the National Institute of Fashion Technology (NIFT) at Kannur and land acquisition programme
for Kannur Airport. The details of allotments in KINFRA Industrial Parks as on 01/12/2014 are given
in Appendix 3.15.

3.29 The details of Food Processing Units under KINFRA are explained in para 3.78.

Section 3
Micro Small and Medium Enterprises (MSMEs)

3.30 Worldwide, micro, small and medium enterprises (MSMEs) have been accepted as the engine
of economic growth and for promoting equitable development. The MSME sector in India is diverse in
terms of its size, levels of technology employed and range of products and services produced. Starting
from village Industries, the products from the sector span to auto components, micro-processors,
electronic components and electro-medical devices. MSMEs have shown constant growth rate in
recent years much ahead of the large-scale corporate sector. The sector showed a consistent growth
of 11% till 2010-11, whereas growth rate was 19% in 2011-12 and 14% in 2012-13. In India, service
sector have grown up very rapidly. As per the latest estimates (2014) MSMEs contribute 30% to the
GDP in the Services Sector.

3.31 The Ministry of MSME has been allocated outlays of ` 2,700.00 crore, ` 2,835.00 crore, ` 2,977
crore and ` 3,327.00 crore for 2011-12, 2012-13, 2013-14 and 2014-15 respectively for promotion
of MSMEs in the country. During Twelfth Five Year Plan an outlay of ` 24,124.00 crore has been
allocated for Ministry of Micro, Small and Medium Enterprises (MSME), which represents an increase
of 133.53% over the XIth Five Year Plan allocation of ` 10,330.00 crore.

3.32 In Kerala, the Micro Small and Medium Enterprises sector is fast emerging into a major
income generating & employment providing sector with relatively lower capital cost and also help
in industrialisation of rural & backward areas, targeting various social groups like SC, ST, Women,
Youth, Physically Handicapped etc. thereby, reducing social/regional imbalances, assuring more
equitable distribution of income and wealth. This sector contributes enormously to the socio-economic
development of the state and the State Government adopted a proactive approach to meet the
challenges in the sector. As per the MSME survey & Quick Results of 4th Census 5.62% of all India
share of MSME enterprises is in Kerala.

3.33 MSMEs play a critical role in innovation and have ability to experiment with new technologies
on small scales. However, they often suffer from paucity of funds, lack of entrepreneurial spirit,
inability to take technology developments risks and face the difficulty of attracting skilled manpower.
The industries coming under this sector are handicrafts, Handloom, Khadi, Food processing
industries, Garment making and Textile industries, industries related to coir/wood/bamboo/Plastic/
rubber/ leather/ clay products etc.

Economic Review 2014