The programme was launched by the Government of India in the financial year 2007-2008, based on an idea made by the National Manufacturing Competitiveness Council.
Development of the Micro, Small and Medium Enterprises through the NMCP
Manufacturing plays a huge role in the Indian economy. 17% of India’s Gross Domestic Product (GDP) is contributed with the help of manufacturing. Small and Medium Enterprises (SMEs) play a vital role in contributing to the manufacturing output. 40% of the total exports and 45% of the manufacturing output are contributed by SMEs. Due to this contribution, various employment opportunities are available all over India.
The Indian Government launched the NMCP with the goal of improving the contribution of the manufacturing sector towards GDP to 25%. Governance reform, marketing, technical simplification, access to capital, skill development, manufacturing management, and IT adoption are some of the domains that the Central Government looks to improve. By improving these domains, the Indian Government looks to help Micro, Small and Medium Enterprises (MSMEs) in India cope with the worldwide landscape. It also helps local manufacturers cope with various foreign manufacturers that are present in India.
Goals of the National Manufacturing Competitiveness Programme
By introducing schemes that will help in the promotion of marketing support for SMEs, design clinic, mini-tool rooms, and Information and Communications Technology (ICT), NMCP has designed a national manufacturing programme with a tenure of five years. The main objectives of the programme are mentioned below:
- Meet the challenges for the execution of the program.
- To make the focal point of the programme in improving competitiveness when dealing with MSMEs.
- To create role models by using a catalyst approach.
- MSMEs fears in divulging data.
- Investment in the contribution made by MSMEs is not certain.
- It is mainly a supply-side project.
- Implement the programme with a Public Private Partnership.
- The key resourcefulness of the programme in international and domestic markets.
National Manufacturing Competitiveness Programme target areas and implementation
In order to support MSMEs in an aim to be more competitive, the NMCP was launched by the Indian Government. The main aim of the programme is to have Indian MSMEs compete globally. By using the below-mentioned components and schemes, the programme looks to develop the MSME sector:
- Credit Linked Capital Subsidy for Technology Upgradation (CLCSS): In order to help in providing technology upgradation for MSEs, the scheme gives a 15% subsidy, which can be a maximum of Rs.1 crore as an added investment. The scheme covers more than 750o products that can be used to improve the technology of MSEs. However, MSEs cannot use the investment provided by the scheme to buy the same type of technology that currently exists or buy used machinery.
- ISO 9000/ISO 14001 Certificate Reimbursement: In case SMEs or ancillary undertakings have ISO 9000/ISO 14001/HACCP certification, this scheme gives incentives to provide SMEs with more strength to compete. In case SMEs acquire ISO 14001 certification, the scheme provides reimbursements.
- Marketing Assistance or Support to MSMEs (Bar Code): In a move to encourage MSEs to use bar codes, the Ministry, under the scheme, provides a reimbursement of registration fees for bar coding as well as for conducting seminars.
- Lean Manufacturing Competitiveness for MSMEs: The main objective of the scheme is for MSMEs to use Lean Manufacturing techniques to improve the manufacturing competitiveness.
- Design Clinic for Design Expertise to MSMEs: By adopting design and its learning, the scheme’s aim is to enhance the competitiveness of MSMEs.
- Technology and Quality Upgradation Support for MSMEs: In order to use clean development mechanism and minimise the cost of production, the scheme promotes the use of energy efficient technologies.
- Entrepreneurial and Managerial Development of SMEs through Incubators: Under this scheme, funding is provided at an early stage in order to bring up innovative business ideas such as new indigenous procedures, processes, products, technology, etc. The early funding is provided so that these ideas can be commercialised in a year. The scheme also helps in setting up business incubators by providing funds.
- To make the Manufacturing Sector more competitive via QMS and QTT: The main objective of the scheme is to help MSEs understand the latest Quality Technology Tools (QTT) and Quality Management Standards (QMS).
- Building Awareness on Intellectual Property Rights (IPR): The objective of the scheme is to help MSMEs know about Intellectual Property Rights. Making proper use of IPR tools will help in technology upgradation and increase the competitiveness of MSMEs.
- By promoting the use of Information and Communication Technology (ICT).
- Apart from training centres, the programme also plans on setting up Mini Tool Rooms.
In order to implement these changes, nearly Rs.122 crore has been invested towards NMCP from the time the programme was launched. The implementation of these steps will help Indian MSMEs compete globally with the likes of China and neighbouring countries.