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The Hindu - July 19 .......

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» MSME in India: The Regional Scene

India

Under the Constitution of India, promotion of MSMEs is a concurrent subject, in which, both the Union government and the States can make legislations. In addition to such legislations, at both levels, promotional and developmental activities have also been initiated.

Beyond a constitutional validity, India is a sub-continent in itself, as per international standards, in addition to its diversity in terms of, economic and social behaviour of the people. Therefore, an understanding of diversity is important from the point of view of understanding how the MSME sector in the country perform, at a time,as national and regional entities.

The industrial geography of India is characterized by a strong interdependence of the corporates sector and the MSMEs, through backward and forward linkages. However, such linkages are conditioned, to a significant extent, by the contiguity and dispersal of enterprises. Besides, public policy today is largely tuned to the context of industrial clusters rather than firms that are largely stand-alone.

Regional Geography

The MSME geography of the country is characterized by the predominance of fifteen states, which, to a significant extent, shape its all-India pattern of concentration.This report covers only those states which represent more than 2 per cent of the MSME population of the country. These states are, Uttar Pradesh, Gujarat, Karnataka, Tamil Nadu, Punjab, Rajastan, Andhra Pradesh, Maharastra, West Bengal, Madhya Pradesh, Kerala, Haryana, Bihar, Chahattisgarh and Orissa..

This chapter is specifically devoted to an overview of state level scene, focusing on these states. It is important to note that, these states together constitute more than 50 per cent of the MSMEs, as per the latest all-India Census of MSMEs .

Uttar Pradesh

The State, people and the Economy:

Uttar Pradesh, with a size of 240,928 sq. km, has a population of 166052859. In terms of HDI, it is ranked as 13^th in the country.

The Industrial Eco System:

The State has 521835 small-scale industrial units involving a total investment of Rs. 5131 crore and employment opportunities for 2001000 persons. Sugar, textiles and automobiles are the key sectors.

Under the public sector, mining of limestone, magnesite, phosphate, dolomite and silicon-sand is carried out. The bulk of minor, and some of the major, minerals like limestone, silica-sand, pyrophyllite and diaspore is mostly with the private sector.

UP has the largest number of identified MSME clusters (184 Numbers) in the country. The top five clusters in the State are located in districts, Meerut (10), Pratapgarh (7), Shajahanpur (7), Sultanpur (6), Jhansi (6). The major clustered industries in the State are furniture & fixture wooden (20), Atta (16), Rice Milling (10), Jewellery Ornaments (11) and Flour milling (8).

The Industrial Policy:

The New Industrial Policy 1998, seeks to ensure creation of an atmosphere of security to develop confidence in the entrepreneurs. The three pronged strategy of the Policy are:

Development of infrastructure, through private sector participation;

Comprehensive and rapid development of selected Geographical

Corridors, with high quality infrastructural facilities; and

Up-gradation of existing Infrastructure facilities

Gujarat

The State,People, and the Economy

With over 50 million population, Gujarat comprises of 5% of India’s population. The State constituting 6.2% of the size of the country, has a GDP of US$ 45.3 billions. Per capita income is US$ 915, at current prices. The level of urbanization is 37.4%. In terms of Human Development Index, it is ranked as 6^th.

The Industrial Eco system:

The industrial geography of the state is characterised by over 800 large industrial units and 3,20,000 MSMEs.

The State has a diversified industrial structure, constituting industries like chemicals, petrochemicals, fertilizers, engineering, electronics, etc. The number of registered working factories in the State were 21,536, with the average daily employment of 9.27 lakhs

The State demonstrates a significant tendency of clustering of MSMEs. These clusters together constitute 37.6% of all MSME units and 43.5% of investments. Gujarat has 53 identified MSME clusters. The top clusters in the state are located in districts, Rajkot (8), Ahmedbad (6), Jamanagar (3), Vadodara (3). The major clustred industries in the state are Ceramics (4), Oil Mills (3), Embroidery works (2) etc.

Industrial Policy

The Industrial Policy, 2009 lays emphasis on infrastructure development. The Policy provides for development of new industrial estates on PPP basis.

Karnataka

The State, people and the Economy

Karnataka state, with an area of 191,791 sq. km, and has a population of 52,850,562, ranked 7^th in the Human Development Index.

The Industrial Eco System

Karnataka State and, Bangaluru city in particular, have become the biotech hub in the country. According to latest datas, the value of Biotech exports was 215 Million US$. IT and BT are the modern subsectors for which Karnataka is known for. The base of large network of public enterprises makes the State a proud of place in the in the industrial map of the Country. The State has a strong base of modern SMEs as well as micro enterprises and subsectors.

Karnataka has 77 identified MSME clusters. The top clusters in the State are located in districts, Bangalore (12), Mysore (9), Bangalkote (6), Chitradurga (6), Hassan (4), Tumkur (4). The major clustred industries in the state are Flour milling (6), Furniture, fixture wooden (5), Agarbathis (4), Leather products (4), Agricultural implements (4) etc.

Industrial Policy

Govt of Karnataka came out with its latest five year Industrial Policy in 2009. The main objective of this Policy is to make the State more attractive to the entrepreneurs as well as investors, irrespective of the size of investment.

In order to provide an enabling environment for investors, the State government has already enacted Karnataka Industries (Facilitation) Act, 2002. Due to the progressive measures and pro-active mind set of the Government, today, Karnataka has been recognized as one of the preferred investment destinations both for domestic and overseas investors.

Manufacturing is recognized as the main engine for economic growth and creation of wealth. Competitiveness and innovation geared to robust growth of manufacturing sector is necessary for creating overall growth and employment opportunities. The policy gives special thrust on MSMEs. Attractive employment and performance linked package of incentives and concessions to attract investments to backward regions and also to provide a leverage to MSME sector.

Tamil Nadu

The State and the People

Tamil Nadu is the sixth most populous State of the Indian Union. The State with an area of 130,058 sq. km, and has a population of 62,405,679.

The Industrial Eco System

Tamil Nadu occupies the second position, after Maharashtra, in the field of industrial development in India. Following some of the well-known public sector undertakings, several new initiatives came up. Viewed in terms of flow of investment, factor endowments, and favourable industrial climate, the State has a unique position in the industrial map of the country. Tamil Nadu leads in various sectors such as automobiles, auto ancillaries, IT, spinning textiles, leather and pharmaceuticals.

The premier SME sub sectors are , automobile ancillaries, textiles, and food processing. The growth of the automobile ancillaries industry is mainly for the presence of companies like Ford and Hyundai . The food processing sector is growing, as there is a demand for processed and packaged food; several cold storages have been set up for exporting frozen vegetables and fruits.

A remarkable feature of the enterprise eco system in Tamil Nadu, is the presence of industrial clusters in various parts of the State. There are 45 identified MSME clusters. The top clusters in the State are located in districts, Coimbatore (7), Chennai (5), Thiruvallur (5), Nagapattanam (4). The major clustred industries in the state are Textiles (6), Leather products (5), Match Box (2) etc.

Industrial Policy

Considering the importance of the MSMEs involving lesser capital investment and more employment opportunities, to increase and develop such enterprises, the “Micro, Small and Medium Enterprises Policy has been announced and being effectively implemented.

In tune with the legislation of Government of India, the chief Minister released an exclusive MSME policy on 22.02.2008, which is the first-of-its-kind in the country, with a vision to enhance the competitiveness of the sector, and aimed at sustained annual growth rate of over 10 per cent, and direct and indirect employment opportunities to the tune of 10 lakhs during the XI Five Year Plan period. The Policy focussed on all initiatives to be taken up for the development of MSMEs in the State including infrastructure development, incentive schemes, technology development, subsidy schemes for units located in industrially backward areas, skill development, marketing support, deregulation and simplification, administrative reforms and rehabilitation of sick enterprises in the state. For the speedy implementation of the package of incentives and concessions announced in this policy, the Government has formulated guidelines and has issued Government Orders thereon.

The Commissionerate of Industries and Commerce, the nodal agency, implements various programmes with emphasis on the development of Micro, Small and Medium Enterprises in the State. District Industries Centres are functioning in 29 Districts in Tamil Nadu except Chennai District where Regional Joint Director renders all help to the prospective entrepreneurs for starting MSMEs. 10 thrust sector manufacturing enterprises viz., Electrical and Electronics, Leather and Leather goods, Auto parts and components, Drugs and Pharmaceuticals, Solar Energy Equipment, Gold and Diamond Jewellery for exports, Pollution Control equipments, Sports Goods and Accessories, Cost effective building material and Readymade Garments, set up anywhere in the State are eligible for a special capital subsidy of 15% on the eligible plant and machinery, subject to a maximum of Rs.30 lakhs. There is a Small Scale Industries Board functioning under the Chairmanship of Minister for Rural Industries.

Tamil Nadu has 46 identified MSME clusters. The top clusters in the State are located in districts, Coimbatore (7), Chennai (5), Thiruvallur (5), Nagapattanam (4). The major clustred industries in the state are Textiles and Garments (5), Leather Goods (5), Match Box (2), Rice Milling (2) etc.

Punjab

The State, People and the Economy

Punjab, with an area of 50,362 sq. km, has a population of 24,358,999. Its average growth rate of 10% is amongst the highest in the country, clearly reflecting the progressive economy of the state .Punjab has a 58% literacy rate and the highest per capita income in India. In terms of Human Development Index, it is ranked as 2^ndin the country.

The Industrial Eco System

Punjab has over 2.04 lakhs of MSMEs and about 600 large scale industries. It leads in the manufacture of machine and hand tools; printing and paper cutting machinery; auto parts and electrical switch gear. The state also provides more than 75% of the country's requirement for bicycles, sewing machines, hosiery and sports goods.

Punjab with an area of 5.03 million hectares, and population of 24.3 million, has a number of advantages of doing business. Agriculture has been the main stay of Punjab’s economy. Although it accounts for 1.5% of total land area of the Country, yet it accounts for 54% of the marketable surplus of wheat and 38% of the marketable surplus of rice in India.

Punjab has 40 identified MSME clusters. The top clusters in the state are located in districts, Jalandhar (10), Ludhiana (8), Amritsar (4), Sangarur (3), Fardikot (3). The major clustred industries in the state are Rice Milling (4), Atta (3), Furniture & fixture wooden (3), Machine and hand tools (2) etc.

Industrial Policy

The Government of Punjab came out with its latest Industrial policy in 2009.

The thrust of the Policy are the following:

a) To play the role of facilitator & hand-holding being investor-friendly.

b) To attract investment in the private sector & under the PPP mode.

c) To develop clusters through a Dedicated Fund for the development of clusters, Common Facilities. Centres, and providing infrastructural support .

d) To promote competitiveness and innovation.

e) To stimulate economic growth, industry and service sector, being the main engines of growth.

f) To promote IT & IT Enabled Services.

g) To promote value addition to the resources of the State while promoting Agro based & Food processing industry.

h) Emphasis on fresh employment generation and skill upgradation.

Rajasthan

The State, People and the Economy

Rajasthan, with an area of 3,42,239 sq. km, and a population of 56,472,122, is a vibrant, exotic state where tradition and royal glory meet in a riot of colors against the vast backdrop of sand and desert. In terms of Human Development Index, it is ranked as 9^th in the country.

The Industrial Eco System

Rajastan is fast emerging on the industrial scenario of the country. Some of the important Central undertakings are, Zinc Smelter Plant at Devari (Udaipur), Copper Plant at Khetri Nagar (Jhunjhunu) and Precision Instrument Factory at Kota. Major industries are textiles and woollens, sugar, cement, glass, sodium plants, oxygen, vegetable dyes, pesticides, zinc, fertilizers, railway wagons, ball bearings, water and electricity metres, sulphuric acid, television sets, synthetic yarn and insulating bricks. Besides precious and semi-precious stones, caustic soda, calcium carbide, nylon and tyres, etc., are other important industrial units.

Rajastan has 45 identified MSME clusters. The top clusters in the state are located in districts, Nagaur (5), Alwar (5), Bikaner (4), Dausa (4), Jaipur (4). The major clustred industries in the State are, Flour Milling (7), Atta (5), Furniture & fixture wooden (4) etc.

Industrial Policy

State Government has notified the Rajasthan MSME Development Assistance Scheme, 2008, on 13.2.2009 to implement Policy Package for MSMEs. Under the package, MSMEs have been provided exemption from entry tax on inputs like raw materials, processing materials and packaging materials. Reduction rates of taxes and fees; and special incentives for training infrastructure; to make the State's MSMEs achieve the global bench mark, Research Development & Testing Laboratories set up by them, will be given land at the 50% of the DLC rate. The policy also seeks to promote innovation and quality consciousness.

Andhra Pradesh

The State, People and the Economy

Andhra Pradesh is the fifth largest State in the country with an area of 2, 76,754 sq. km, accounting for 8.4 % of India’s territory with 76.7 million population. In terms of Human Development Index, it is ranked as tenth in the country.

Industrial Eco System

There are several major industries in operation around Hyderabad and Visakhapatnam. They manufacture machine tools, synthetic drugs, pharmaceuticals, heavy electrical machinery, fertilizers, electronic equipments, aeronautical parts, cement and cement products, chemicals, asbestos, glass and watches. The state has the largest deposits of quality chrysolite asbestos in the country. Other important minerals found in the state are copper ore, manganese, mica, coal and limestone. The Singareni Coal Mines supply coal to the entire South India.

AP’s strength lies in its fully diversified industrial base, with the thrust on high-tech sectors including IT, pharmaceuticals, biotechnology and Nano Technology. Traditional sectors such as textiles, leather, minerals, and food processing are also being further developed for high value addition. Andhra Pradesh has 96 identified MSME clusters. The top clusters in the State are located in districts, Chitoor (9), Guntur (7), Vishakapatanam (7), Nalgonda (6), Warangal (6), Nellore (5), Rangareddy (5). The major clustred industries in the state are Flour Milling (9), Furniture and fixture wooden (7), Bamboo crates (3), Rice milling (3), Silk sarees (2), Refractories (2) etc.

Industrial Policy

The State Government has been promoting the manufacturing sector in a big way by providing concessions in power tariff, allotting land and relaxing labour laws in SEZs. AP has promoted 71 SEZs of which 52 have been notified by the Government of India with an investment potential of Rs. 35,000 crore and creation of employment for 25 lakh persons.

To drive industrial growth by attracting private investments, an industrial policy statement of the State which sets out clear and credible specific measures to improve the investment climate towards better regulation by removing barriers to competition.

The State has undertaken wide-ranging measures to nurture its industries: simplified, less restrictive regulations, labour and fiscal reforms, incentives. In line with this objective, the State has enacted a law for single-window clearances. It is the first Sate in the country to have a law for single-window clearances, which ensures that all clearances to investors are given within a set period. The State has been qualified as "flexible" in its approach to labour regulations and "good" for its simplification of rules and regulations. It introduced the self-certification concept, common annual returns in place of multiple returns with simplified registers, and zero inspection regime through accredited agencies.

The road map for Policy are:

a) to make Andhra Pradesh a strong base for manufacturing sector; b) To increase industrial investment by 10% every year; c) Contribution to the State GDP (GSDP) from industrial sector to be increased from 12.9 % to 15 %; d) To improve exports from the State by increasing the present share of exports in India from 4.39% to 10% by 2010; and e) rural Industrialization with emphasis for promoting cottage and micro enterprises.

Maharashtra

The State, People and the Economy

With an area of 3,07,713 sq. km and a population of 96,752,247, Maharashtra occupies a position of prominence in India. It has 10% of the country’s geographical area (0.3 million Sq. Kms) and 10% of its coast line (720 Kms). 43% of its population lives in urban areas, as against the country’s 28%. It contributes over 13 % of the national GDP, and its per capita income is 39% higher than the national figures. Its 96.88 million people (9.4 % of country’s population) produce over 19% of the country’s GDP. In terms of Human Development Index, it is ranked as 4^th in the country.

The Industrial Eco System

The State has been identified as the country's powerhouse, and Mumbai, the country’s financial and commercial hub. Industrial sector occupies a prominent position in the economy of Maharashtra. Food products, breweries, tobacco and related products, cotton textiles, textile products, paper and paper products, printing and publishing, rubber, plastic, chemical and chemical products, machinery, electrical machinery, apparatus and appliances, and transport equipment and parts contribute substantially to the industrial production in the State. The ratio of registered to unregistered MSMEs in Maharashtra is 1:3, indicating that for every registered unit, there are three MSMEs that are not registered.

Maharastra has 101 identified MSME clusters. The top clusters in the State are located in districts, Pune (11), Nanded (9), Ratnagiri (7), Amaravati (5), Beed (5), Kolhapur (5). The major clustred industries in the state are Basic Drugs (3), Chappals (3), Dal Mills (3), Flour milling (3), Powerlooms (3), Readymade garments (3), Furniture and fixture wooden (2) etc.

Industrial Policy

The industrial policy of the state seeks to achieve higher and sustainable economic growth with emphasis on balanced regional development and employment generation through greater private and public investment in industrial and infrastructure development. The Policy targets are :a) Target Industrial Sector growth rate of 10% by 2010; b)Target Service Sector growth rate of 12% by 2010; and c)Additional employment generation of 20 lakh by 2010

Strengthening of SME sector is a key priority area of policy. Looking at the impressive growth which the SME sector has registered in the last few years, especially in the field of light engineering, textiles, biotech and IT, the State Government will give special focus on the SME sector to achieve its objective of high growth with greater employment opportunities.

Madhya Pradesh

The State, people and the Economy

Madhya Pradesh is the second largest Indian Sate in size with an area of 30, 8,000 sq.km has a population of 60,385,118. Geographically it occupies a pivotal position in the country.

Madhya Pradesh is a mineral rich state. The state produced minerals worth Rs. 5312.65 in 2005-06. It produces 21 types of minerals. The output of minerals in 2006 was dolomite-128 thousand metric tonnes, diamond-44149 thousand carats,Limestone-25865 thousand metric tonnes, bauxite-87 thousand million metric tonnes and copper ore - 1706 thousand million metric tonnes. The coal production was 54000 thousand metric tonnes. The State is famous for its traditional handicrafts and handloom cloth manufactured in Chanderi and Maheshwar.

The Industrial Eco System

Madhya Pradesh has 67 identified MSME clusters. The top clusters in the state are located in districts, Shahdol (8), Guna (5), Narasinghapur (4), Bhopal (3), Sagar (3). The major clustred industries in the state are Atta (6), Furniture & fixture wooden (7), Bricks and tiles (non ceramic) (5), Eletricals (2) etc.

Madhya Pradesh has entered the era of high-tech industries, such as electronics, telecommunications, automobiles, Information Technology, etc. The state produces optical fibre for telecommunication needs. A large number of automobile industries have been established at Pithampur near Indore. Prominent industries in the public sector in the state are Bharat Heavy Electricals Ltd. at Bhopal, Security paper mill at Hoshangabad, Bank Note Press at Dewas, newsprint factory at Nepanagar and alkaloid factory at Neemuch.

Foreign Direct Investment is being promoted by implementing the comprehensive Economic Development Policy. The state government has announced an Industries Promotion Policy offering attractive incentives for investment in the state. Letters of intent for establishment of industries with an investment of Rs. 5200 crore have since been received. The docks have been cleared for the long pending Rs. 10,300 crore Oman Bina Refinery Project at Bina in Sagar district. The Government of India has also sanctioned a National Auto Testing and Research and Development Infrastructure Project to be set up at Pithampur in Dhar district.

The State Government has also announced a new IT Policy to attract private investment in IT sector.

Madhya Pradesh Rural Employment Scheme has been implemented in 18 districts. M.P. has topped in the country in its implementation.

West Bengal

The State, people and the Economy

West Bengal has eighth position regrading Human Development Index. The State with a size of 88,752 sq. km has a population of 80,176,197.

The Industrial Eco System

Over 314,000 registered small enterprises are in existence in the State employing around 2 million people. The Policy adopted involves a multi pronged strategy comprising of a mix of institutional, marketing and infrastructure support, which can help the sector to sustain and gain growth momentum

The State Government has recognized the need for faster economic development through creation of potential for industrial investment. The investment in Information Technology Sector and the sector registered 48 per cent growth rate in export against national growth rate of 30 per cent. 250 IT and ITES companies were operating in Kolkata, employing about 45000 professionals. The IT Hub at sector-V of Salt Lake is India's first fully integrated electronic complex spread over 150 acres of green pollution free area near airport.

Of the total investment in West Bengal, highest investment will be in steel and power sector. The top potential investor in the State was SAIL, which announced plans to invest Rs. 20,000 crore in Kulti, Bunpur and Durgapur for increasing its steel production capacity. It was followed by L & T Power Development, which laid out a plan of Rs. 20,000 crore in Haldia for increasing its power generation capacity in Haldia.

West Bengal have 77 identified MSME clusters. The top clusters in the state are located in districts, 24 Paraganas (17), Howrah (11), Kolkatta (10), Birbhum (9), Midnapore (6). The major clustred industries in the state are Rice Milling (7), Furniture and fixture wooden (5), Biri (5), Muri puffed rice (4), Sweet meat confectionery (4), Leather goods (4), jewellery (3) etc.

Industrial policy

Keeping in mind the new Economic Policy, West Bengal formulated its Industrial Policy Resolution in 1994 with a view to secure faster and balanced economic development with the active cooperation of the private sector. The key features of the Policy are: 1) Appropriate foreign technology and investment are welcomed on mutually advantageous terms; and 2) due recognition of the importance and key role of private, public & joint sectors in providing accelerated growth and in improvement in infrastructure.

Based upon the available opportunities and the potential of this region, the State Govt, has identified certain segments of industries as thrust areas for special attention. In order to protect, support & promote MSMEs, a number of investment & promotional policies have been by the State Government.

Kerala

The State, People and the Economy

Kerala, with an area of 38,863 sq. km, has a population of 31,841,374.

The Industrial Eco System

The number of working factories in Kerala as on 2006 was 18411, which gave employment to 409800 persons. Out of this, the number of public working factories was only 528. The total number of joint stock companies in Kerala as on March 2007 is 15549 of which 1422 are public limited and 14127 are private limited. Kerala has the highest number of State owned enterprises

Kerala has 21 identified MSME clusters. The top clusters in the State are located in districts, Kannur (4), Kasargod (3), Thiruvanathapuram (3), Thrissur (3). The major clustred industries in the state are Furniture and fixtures wooden (5), Mats, straw (7), Bidi (2), Coir (2) etc.

The well known “Kerala Model of Development” is characterised by a disproportionate growth of the tertiary or the service sector. Development on the industrial sector has not been satisfactory, owing to a variety of reasons. The State government is making all out efforts to make rapid strides in IT industry in the state, the results of which are visible in the increased revenue from export of IT products. But Kerala's forte is in tourism industry which has been growing at a faster rate.

Economy

Kerala Economy is experiencing a slow recovery from a long slump. In the 1970s and 80's it was relatively stagnant, whereas in nineties, the state economy experienced a significant growth rate (5.99%) with enhanced performance of secondary and territory sectors.

The global financial recession has started affecting the economy of Kerala, with a fall in rubber price, decrease in exports and decline in job opportunities abroad. Cashew export sector, as well as tourism are also reasonably apprehensive about the global economic contraction. Above all, the effects of the global financial and economic crisis have already had its toll on the information technology (IT) sector in Kerala. If the IT sector in the state slows down, the state might face a lot of problems with unemployment, because the category of people being employed in the IT sector in Kerala might not easily find employment with salaries similar to their current pay cheques.

Industrial Policy

The Industrial and Commercial Policy -2007 gives a specia thrust on MSMEs.

Since MSMEs provide large scale employment, Government is committed to support and strengthen this sector through various schemes: a) Strengthen the District Industries Centres ;

b. Promote MSMEs by using the funds from the decentralized plan devolved to the local self government institutions; c)Utilise unused lands of Local Self Government Institutions; d) Support MSMEs by giving price preference, exemption from EMD , Security Deposit with specific conditions etc and e)The Department of Industries would provide all help and support to entrepreneurs who seek financial assistance from banks and other financial agencies.

The self help group movement is strong in Kerala.But their impact on enterprise development is much weak.

Haryana

The State People and the Economy

In human development Index, Harayana is placed at 5th place. State with a size of 4,212 sq. km has a population of 21,144,564.

The Industrial Eco System

Haryana has a large industrial base having more than 1,343 large and medium and 80,000 small scale units in the State. The state is the largest producer of passenger cars, tractors, motorcycles, bicycles, refrigerators, scientific instruments, and the largest exporter of Basmati rice in the country.

Harayana has 21 identified MSME clusters. The top clusters in the state are located in districts, Faridabad (3), Ambala (2), Hissar (2), Panipat (2). The major clustred industries in the state are Stone crushing (3), Auto components (2), Mixers and grinders (1), Shoddy yarn (1) etc.

Industrial Policy

The Industrial policy 2005 has a special chapter on MSME sector, wherein 14 focal initiatives have been identified. It has identified six thrust areas: 1)Agro based and Food Processing Industry;2 Electronics and Information & Communication Technology;3 Automobiles & Automotive Components;4 Handloom,5), garment Manufacturing;6 Export Oriented Units; and 7)Footwear,8) leather garments and accessories.

Bihar

The State and its People

The ninth largest state of the Indian Union, Bihar has a total area of 94163 sq. km. In terms of Human Development Index, it is ranked as 15^th. Traditionally a laggard state, that actually saw a 5.15% negative growth in 2003-04 – it is now the second fastest growing state, with 15 growth rate.

Enterprise Eco System

Bihar has a number of major public sector projects like the Oil refinery of Indian Oil Corporation and Fertilizer Plant of HPCL at Barauni, Pyrites, Phosphates and Chemicals Ltd (PPCL) at Amjhor; Cotton spinning mills at Siwan, Pandaul, Bhagalpur, Mokamah and Gaya; and 28 sugar mills in located in South and North Bihar. In addition distilleries at Gopalganj, West Champaran, Bhagalpur and Riga (Sitamarhi District); finish leather industry in West Champaran, Muzaffarpur and Barauni; Jute mills at Katihar and Samastipur; Medicine manufacturing unit at Hajipur; Food processing units and Vanaspati manufacturing units at Aurangabad and Patna; Kalyanpur Cement Ltd at Banjari are some of the notable industries. Dairy and sugar cane are two major subsectors.

Bihar has 86 identified MSME clusters. The top clusters in the State are located in districts, Patna (7), Vaishali (6), Aurangabad (6), Nawada (5), Bhojpur (4). The major clustred industries in the state are Furniture and fixture wooden (11), Atta (10), Rice milling (7), Flour milling (7), Agricultural implements (4), Bricks and tiles (non ceramic) (3), Engineering and fabrication (3) etc.

Industrial Policy

Bihar came out with an Industrial Incentive Policy in 2006. This policy offers several pre-production incentives to businesses.

The policy thrusts on creating a create favorable circumstances and signals in order to establish industries in the State. It also seeks to promote all round development of the state, and of industrial development by ensuring and investor friendly approach through the Bihar Single Window Clearance Act - 2006. Bihar Infrastructure Development Enabling Act- 2006 was enacted to provide for rapid development of physical and social infrastructure. To ensure land availability, Land Bank was set up. Marketing arrangements for small, tiny, cottage industries, handloom and handicrafts, was a key thrust of the policy.

Recent Initiatives

Considering several objective factors, the state governments stressed that awarding the special category status to Bihar would result in benefits, such as reduced excise and income-tax and this should attract large investments.

Chattisgarh

The State, People and Economy

The state which was formed in November 2000, which covers a geographical area of 135,000 sq km, is India's newest state and one of the country‘s fastest-growing states. Fourty per cent of the State is under forest area.

This state is mineral-rich, with 28 varieties of major minerals. The state attracted investment proposals worth US$ 4.89 billion in October 2007. Construction and services in the tertiary sector registered a growth of more than 30 per cent year-on-year in 2008–09. The State is the iron and steel hub of the country. The Bhilai Steel Plant of Steel Authority of India Ltd (SAIL) produces more than 4 million tonnes of iron and steel per annum. Blessed with 84% of India’s coal reserves, mining and industrial activity have grown over time of the South East Central Railways(1998), headquartered at Bilaspur, NTPC’s Super Thermal Power Plant are major industrial investments. The state has 88 species of medicinal plants.

The Industrial Eco System

Chattisgarh has 18 identified MSME clusters. The top clusters in the state are located in districts, Durg (4), Jashpur (4), Raigarh (2), Rajnandgaon (2), Mahasamund (2). The major clustred industries in the state are Furniture and fixture wooden (2), Rice Milling (2), Benches (1), Wooden doors/windows (1) etc.

Natural resources like forests, minerals and surface water, are anundant. Produces 15 per cent of the steel made in the country; there are 133 steel re-rolling mills and a number of mini steel plants; 11 ferroalloy units, steel/cast iron casting units, engineering and fabrication units, apart from large number of agro-based and food processing, chemical, plastic, construction material, forest produce based units.

Industrial Policy

The main objective of the new industrial policy is to add maximum value to the State's abundant natural resources, and create maximum employment opportunities. The policy attempts at providing necessary infrastructure and investor-friendly environment. Handloom and handicrafts,to be promoted through
institutional arrangements and their strengthening.

Orissa

The State, People and the Economy

Orissa, rich in mineral resources, is considered to be one of the backward states in terms of social indicators. In the human development index, the State is placed at 12^th place. The State, with a size of 155707 sq. km., has a population of 36,804,660. In terms of human Development Index, it is ranks as the 11^th.

The Industrial Eco System

Orissa has 61 identified MSME clusters. The top clusters in the state are located in districts, Ganjam (7), Cuttack (7), Balasore (6), Mayurbhanj (5), Sambalpur (5), Sonepur (5). The major clustred industries in the state are Rice milling (11), Furniture and fixture wooden (7), Sarees (6), Leaf plates (5), Clay earthern (3), Jewellery (2) etc.

Industries

Mineral-rich Orissa, houses major projects like, Rourkela Steel Plant, National Aluminum Company, National Thermal Power Corporation

Industrial Policy

Orissa MSME Development Policy-2009 aims at promoting entrepreneurship and creating conditions for SME growth and employment generation. The strategies focus on, cluster development, ancillarisation and promotion of investment linkages. These thrusts of the government have resulted in some of the major projects in the private sector. Bhushan Steel Ltd (BSL) has proposed establishment a ‘SME Steel Park’ around its 3mtpa steel plant being set up at Meramundali in Dhenkanal district at an investment of Rs5828 crores.

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