SME Cluster Series 2014 - Delhi

Dun & Bradstreet - British Airways SME Cluster Series 2014 : Delhi


MSMEs in the Delhi region play a pivotal role in driving the region’s economic growth. There are more than 0.5 million MSMEs in Delhi, which employ almost 2 million people. Of all the MSMEs in the region, registered enterprises account for almost 0.2 million. In FY13, the market value of fixed assets of all the registered MSMEs in the region account for ` 101.6 bn while the gross output of these enterprises account for ` 296.7 bn.

Opportunities for MSMEs in Delhi

Delhi with its large skill base has 30% of its workforce with educational qualifications equivalent to degree or diploma to pursue occupations in fields such as engineering, medicine, law, accounting, and consultancy.

The following are the sectors in which MSMEs have opportunities in Delhi:

Services Sector

  1. Software Industry
  2. IT and ITeS Industry
  3. Media
  4. Bio-technology
  5. Business and Educational Services
  6. R&D and Design
  7. Auto services
  8. Hospitality

Manufacturing Sector

  1. Gems and Jewelry
  2. Handloom
  3. Handicrafts, Khadi, and Village Industry
  4. Electrical and Electronics
  5. Garments
  6. Leather goods
  7. Fabrication
  8. Plastics goods and products
  9. Packaging products

Challenges faced by MSMEs in Delhi

  1. Challenges in obtaining Ems due to cumbersome procedure for obtaining Municipal Corporation of Delhi (MCD) licenses and NOC from Delhi Pollution Control Committee
  2. Lack of availability of timely credit
  3. Lack of availability of land for industrial use
  4. Poor state of infrastructure and facilities available within the industrial estates
  5. Some of State Govt. Agencies/PSUs not recognizing NSIC Certificates insist for earnest money
  6. Deficiency of trained operators and service providers for manufacturing and service sector units

Government initiatives to support MSMEs in Delhi

Delhi being the National Capital, the major thrust is being given on encouraging modern Hi-tech, sophisticated, exportoriented, and non-pollutant small-scale industries in the region. The new Industrial Policy for Delhi 2010-2021 aims to promote the development of high-technology and high-skilled industries in the region, develop world-class infrastructure within planned industrial estates and clusters, and promote transparency and business friendly environment.

Following are the State government initiatives to promote MSMEs in Delhi:

  1. Construction of 15 Common Effluent Treatment Plants to contain water pollutions in industrial estates
  2. Impart training in different technical course to the young generation of the weaker section in order to create selfemployment opportunities
  3. Identify skills and manpower requirement of the industry
  4. Identify opportunity in the MSME sector or the opportunity for self-employment
  5. Assistance to MSMEs for promotion, marketing, and publicity of their products and encourage their participations in the trade fairs and exhibition
  6. Provide knowledge on tool making and tool designing
  7. Develop Industrial Estates for various industries

The State government has also set up Delhi State Industrial and infrastructure Development Corporation (DSIIDC) with the objectives of aiding, counselling, assisting, financing, projecting, and promoting the interest of small industries in Delhi and providing them with capital, credit, resources, technical, and managerial assistance for successful execution of their work and business.