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109Industry and Labour

Box. 3.10
Initiatives which impact Small Scale Industries

SME Platform in Stock Exchanges

As per recommendations of the Prime Minister’s Task Force on Micro, Small & Medium
Enterprises (MSMEs) Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)
have launched their SME (Small & Medium Enterprises) platforms in 2012 exclusively for the
listing of SME enterprises and 68 SME companies have been listed so far. But, none from
Kerala.

De-Reservation of Items from Small Scale Sector

IThe number of items reserved for exclusive manufacture in small scale sector has been
reduced from 873 in 1984 to 20 items, by the GOI based on the recommendations of the
Advisory Committee which considers de-reservation of items to achieve economies of scale,
technological upgradation, competitiveness and to counter cheap imports.

Innovation Fund

The Government has approved setting up of the India Inclusive Innovation Fund (IIIF) to fund
enterprises that create social impact and also generate a modest financial return. The Fund
would operate as a profit entity with a social investment focus.

Section 4
Food Processing

3.74 India’s food processing sector ranks fifth in the world in exports, production and consumption.
The contribution of the food processing industry to the gross domestic product at 2004-05 prices in
2012-13 amounts to ` 845.22 Billion. The industry is also one of the largest employment creators,
with growth in direct employment in the organised food processing sector standing at 6.05% between
2010-11 and 2011-12.Food is the biggest expense for an urban Indian household. About 38.6% of
the total consumption expenditure of households was spent on food. As per the Fourth All India
Census of MSME, the estimated number of registered food processing units in MSME sector were
2.23 lakh and the contribution of food processing units in MSME sector, in terms of value addition,
was ` 42, 659 crore. In terms of employment, the total number of persons engaged in registered food
processing units in MSME sector was 14.68 lakh. The contribution of food processing sector to GDP
has been growing faster than that of the agriculture sector.

Promotion of Food Processing Industries - MoFPI

3.75 To give impetus to the food processing industries in the country, Ministry of Food Processing
Industries has taken up several Schemes during 12th Five Year Plan.

• National Mission on Food Processing (NMFP) provides financial assistance in the form of
grant-in- aid is provided to the interested and eligible entrepreneurs @ 25% of the cost of Plant
& Machinery and Technical Civil Works subject to a maximum of ` 50 lakhs in general areas
and @ 33.33% subject to a maximum of ` 75 lakhs in difficult areas and @50% subject to a
maximum of ` 100 lakh for N.E States, for setting up of new food processing units as well as
Technological Upgradation and Expansion of their existing units for facilitating processing of
agricultural produce including Millet Grains.

Economic Review 2014