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India is a country which has diverse nature of economy in every state and field. It has its excellence in many fields i.e. spices, tourism, religions and culture. It offers various opportunities to its investors and new startups. Different states have different specialties. Many states are doing excellent in technological field while others are expert in financial matters. This vividity makes India a unique country.

Haryana is one of the fine example of this which provide its people numerous opportunities for growth and development. It has excellence in many fields and ranked in top most states of the country. Its business and industrialization policies are the remarkable one. Haryana occupies its place in top ten in respect of industrial production, manufacturing of cars and many more. This state is hub of tertiary and manufacturing activities. It highlight towards the rapid growth and development of the state among other states of the country. Now the question arises about the role of MSME in the growth and development of the state. Definitely no doubt the major reason behind this tremendous growth is the uprising of MSME sector. 

Review of literature is essential in the field of research to obtain desirable results of the study. The literature demonstrates the path and way of any research. It shows the importance of research in reference to the research which have been taken up in the past. The review in this paper includes the following studies:

Ganguly (1988) studied small scale industrial sector in respect of performance, policies, problem and their prospects. He revealed that the sector suffered with various problems like financial assistance, shortage of raw materials and marketing but still have faster growth.

Balu (1991) studied the financial problems of industries of small scale and the role of banks and financial institutions in solving their problems by advancing loan and financial assistance. This study was based on primary data conducted in Madras city. The study revealed that the poor business background entrepreneurs were more dependent on external sources of finance. The delay in finance created hindrance in the growth of these entrepreneurs. This study recommended approach of a single agency to finance and solve their problem.

Mali (1998) observed that the main problem faced by the SMEs is of competition and globalization. They need to upgrade the technology, develop infrastructure, marketing and management system to compete. These enterprises have to shift themselves towards fast growth as well as strategically connect with the neighboring nations for their business.

Sonia and Kansai Rajeev (2009) studied the globalization and its effect on MSMEs. This study was for the period from 1973 to 2009 before and after liberalization. They conducted the study on four parameters which are production, number of units, employment and export of MSMEs. The results were based upon Annual Average Growth Rate and showed that MSMEs results were not in a desired manner during the post reform period.

Sanchita (2010) studied the problem of female entrepreneurs concerned to management. These problems were related to small scale entrepreneurs of Haryana. The issues which were studied in the study were confidence, working capital, finance, production and marketing and cultural barriers. In answer to these problems she suggested a solution for all administrative steps to help the needy women entrepreneurs so that they can do optimal utilization and minimize the mismanagement of financial resources.

Singh et al (2012) studied the functioning SSI and found that there is a growth in this sector in number of units as well as in terms of overall development. This has enhanced employment and well as level of production. He suggested technology up gradation and strengthening of financial infrastructure to achieve more growth.

Sahapathi and Khanna (2011) studied that MSME which have enhanced export and made progress in technology. They found that it has contributed in all major sectors of Haryana i.e. agriculture, engineering goods, textile, chemicals, computer software, plastic goods and engineering goods.

Statistical Abstract of Haryana (2013-14) it reflects that industrially advanced districts of Haryana are Gurgaon, Faridabad and Yamunanagar. These districts have more that 50% of units. The industrially backward districts are Mewat, Palwal and Mahendergarh which have less than one percent industrial units. So these districts should be taken special care in terms of industrial development.

1. Origin of MSME in Haryana:

Micro Small Medium Scale industry is the important sector of the economy. This sector has significant contribution in terms of economic development, production and employment. The role of MSME becomes more important because it has high capacity of creation of employment.

According to a report of Haryana Government, the state has contribution of 6 percent in the GDP of the country. The state has done many changes at policy level to increase its production. The Chief Minister has taken many initiatives to develop this sector. The state has more than one lakh MSMEs. This sector has capacity to generate high level of employment and already have more than 10 lakhs people working in it. Automobile, textile, engineering, metal and food & beverages sectors have the vast number of MSMEs working. Panchkula, Ambala, Karnal, Kaithal and Rohtak districts have all the three types of enterprises i.e major, micro and small. The medium scale business units are located in Panipat, Gurugram and Faridabad. There is further more wide scope of development of MSME in Haryana.

2. Policy Framework for the growth of MSME in Haryana:

The policy framework for MSME in Haryana is designed to create a healthy environment for this sector by enabling access to finance, technology, markets and addressing issues of industrial sickness. State has again revised its policy in 2019.It has changed its approach to align the revised policy with the earlier Promotion Policy of 2015. It has adopted strategies of development of skill, making of cluster system to strengthen the institutions.

2.1 Cluster Development:

Haryana has started the system of cluster to develop MSME in the state. The scheme has been implemented in phases with a start of 25 mini clusters. After the success of this it will be extended further in the form of new clusters in the next phase. This mini cluster scheme will be extended to service sector also.

2.2 Enhancing Access to Markets:

To increase the access to the market the e- commerce portal will be used to adopt new trend of marketing of MSME. This portal will promote the brand which is manufactured in Haryana at local as well as global level. The state has allotted budget of Ten Crores rupees to execute the scheme. Some other provisions have also been made to increase access to the market.

2.3 Enhancing Access to Infrastructure:

Government has taken initiatives to build up more infrastructures for MSME under the initiatives of State and Center Governments. These will be developed on panchayat land on lease basis. The MSME department with department of Industries shall identify the areas which require up gradation in infrastructure. Infrastructural development in these identified areas shall be taken up on priority by the government. State Government has also made provision of fund for infrastructure development i.e. construction of road, availability of drinking water, availability of power for new projects, developments in aerospace, manufacturing of defence items and new projects for electronics production as disclosed by Industrial Minister, Capt. Abhimanyu.

Table 1.

Provisions under Haryana Enterprises Promotion Policy 2015

Scheme Name	Description of Component	Government Grant Allotted as per MSME Policy 2019 of Haryana
Plug and Play of Cluster	Grant	It covers Fifty Percent of cost of the project and have ceiling of Five Crores. This is for the development of the factories in Five Acres of land.
Revamped scheme	Grant	It covers 90% of Project cost of 3 crores for Heritage clusters. Covers 90%  of project cost of 1.5 crores for Major clusters. Covers 90% of project cost of 0.75 crores for Mini clusters.
Scheme of Renewable energy.	Grant	Give subsidy on interest up to Rs. Ten Lakhs.

Source: Haryana Government. Gazette. (Extra.), Feb. 26, 2019 (PHGN. 7, 1940 SAKA)

2.4 Enhancing Access to Technology:

The concept of Swachch Haryana has been adopted by the government. To achieve this government has promoted technological changes and management of waste material. Government is providing subsidies for the project of industrial sewage treatment plant as well as for the construction of such plants and for adopting technology used to reduce discharge of industry.            

2.5 Entrepreneurship and Skill Development:

To develop entrepreneurship and skill among workers state Government has launched a scheme under MSME policy of 2019. Training to the workers will be given in the present infrastructure available with the State Government and other institutions.

2.6 Enhancing Access to Finance:

Government has given fiscal incentives of Rs. 1000 crores in the form of refund of  VAT, Stamp Duty and rebate in power tariff and interest. MSME can also raise funds through equity capital. This is an important step taken Centre Government for the benefit of MSME.

2.7 Support for Revival of Sick Units:

To revive the sick units, government has formulated a policy and has created a dedicated cell. It will operate as a part of MSME cell. To streamline the procedure of financial institutions to avoid declaring a unit as sick, it will work as a credit facilitator.                   

2.8 Institutional Strengthening and Capacity Building:

To handle the issues of payments, registration of units, approvals and clearances, the State Government has formulated a grievance redressal committee. This will also operate under MSME cell.

3. Initiatives to Develop MSMEs:
The following points are the initiatives to develop the MSMEs:
3.1     Export Promotion Initiative by Haryana Government:

1. Freight Assistance Scheme:

A freight subsidy of Rs. 10 lakhs is provided to MSME to increase their export so that they can become more global. This will also be used reduce the transportation cost.

2. State Export Awards:          

The state government has started an award of Rs. 5 Lakhs to the outstanding exporting units to acknowledge and recognize their contribution for exports.

3. Export Credit Guarantee Corporation:

Reimbursement amount of Rs. 1.5 lakh per annum per unit is sanctioned for small and micro enterprises for five years to those who are having ZED certification.

4. Market Development Assistance:

Financial assistance is provided to MSMEs for participation in international fair or exhibitions.

5. Quality Certification:

Directorate of MSME of Government of Haryana is providing 75% reimbursement of the total expenditure incurred. This covers an amount of 10 lakhs rupees for each certification.

3.2 Other Initiatives of State Government:

1. To enhance export potential of state MSMEs a dedicated Market Development & Export Promotion Cell has been set up within the Directorate for entering new markets and increased global value chain participation.

2. Haryana has developed Industrial Estate through HSIIDC which give priority for allotment of land to Export Oriented Units. This provision has been made in Haryana Enterprises and Employment Policy 2020.

3. To increase the export scenario at the district level, the state has notified District Export Promotion Councils in all 22 districts.

4. State Government has taken initiatives for promoting cross border e-commerce plateform and integration of Haryana MSMEs in global supply chains by doing strategic collaborations with leading private players.

5. Utility Charges Waive-Off:

To enhance enterprises additional source of revenue, the government of Haryana givers perks to the business people in the form of waiving off utility charges which ranges from Rs. 10000 to 40000 per month.

6. Scheme of Revival interest:

A loan of Rs. 20,000 per month is given to employees on working capital which is interest free.

7. Property Benefits:

Property benefits and other waivers are provided to the person whose property is under the control of Government, local body or Panchayati Raj institutions.

8. Special Helpline Number:

To promote the MSME enterprises, Government has provided various helpline number to motivate them.

9. Financial help from Banks:

Government of Haryana has signed a memorandum with the private as well as public bank to extend loans to these units.

10. Restroom & Miscellaneous Facilities:

Government has started giving restroom and living facility to the workers and labourers in various areas. The workers who have shelter problems are the most benefited by this. Government has started various options for financial help to start the business.

11. Schemes for Financial Assistance:

Various other financial schemes have been started by the Haryana Government for MSME. These schemes help the business man to start new business.

12. A fully functional COVID-19 helpdesk has been established by the government

13. An extension has been given on deferment of all outstanding dues as on March 15, 2020 and that it is extended to all Departments, Boards, Corporations.

The base of the study is only secondary data. Different sources are being used to collect the data. Various publications of Centre and State Government, books, web sites and news papers are the main sources.  Methodology used is descriptive in nature to analyze the data.  The results on different problems of MSMEs, their performance and contribution in the state economy have been found after interpretation of data. The conclusions and suggestions have been given only after interpretation and analysis of data.

1. MSME and the Economy of Haryana:

Haryana has played a leading role in terms of industrial production. It has large number of MSMEs working very efficiently and contributing to the industrial production of state as well as to the country. The state has large number of consumer base, abundant availability of manpower, rapidly improving physical infrastructure and reform oriented governance. It provides significant opportunities for entrepreneurs and create global environment by making several provisions in the policy and business climate. Therefore it is very much clear that Haryana is one of the suitable place for the MSMEs to grow and contribute to the economy of the state as well as the country. Though MSMEs are growing very fast in the state but still due to increased competition, environmental regulations and technological changes, the growth and development of MSMEs has been hampered.

The state has 9.7 lakhs MSMEs and provides employment to more than 20 lakhs of peoples. These MSMEs have total investment of more than Rs. 20000 crores. The major MSMEs in Haryana are in food and beverages, textiles, engineering, automobiles and metals sectors. The major MSMEs are located in Panipat, Gurgaon and Faridabad. Maximum MSMEs of micro and small enterprises are situated in districts of northern Haryana i.e. Ambala, Panchkula, Karnal, Rohtak and Kaithal. This sector consists of 14.20% MSMEs of the country.

This sector contributes about 6.19 percent of GDP of the state and with more than 6000 products contributes about 8 percent to GDP of the country. It has contribution of 45 percent to the total manufacturing output and 40 percent to the export of the country. The state has been honored by the Prime Minister of India for its excellent performance and ranked third in the country. State has revised its policy from time to time to tackle the  problems of technology, finance and operation to increase its growth.

There are 48243 MSMEs in Haryana and out of that 33150 are working and 15093 are non working. Large number of non working MSMEs (10973) have been closed and many (4120) are non traceable. The micro enterprises are 30741 out of 33150 working MSMEs and 2329 are small enterprises. The medium enterprises are only few i.e. 80. This reveals that the state has higher number of micro enterprises and medium number of small enterprises. There are 1524 MSMEs working in the service sector and 5155 MSMEs are in repair and maintenance sector. This shows that 4.60 percent are in the service sector and 15.55 percent in the repair and maintenance sector. Anjoo Boora1, Nidhi Dembla2, (2019).

1.1 Clusters and Economic Parameters in Haryana:

The MSME sector has been divided into 42 clusters to give better access and direct benefits of the schemes. There are 5.20 lakhs units under MSME in Haryana providing employment to 12.23 lakhs of peoples. It has total investment of around 25,998.80 Crores and Gross Output of INR 53,198.68 Crores as shown in Table 1 below. The number of units and level of employment has increased sharply over number of years and this sector has become backbone of the economy of the Haryana.

Table 2

Economic Clusters and Parameters

No. of Units	Rs. 5.20 Lakhs
Economic Clusters	42 Numbers
Existing Employment Level	Rs. 12.23 Lakhs
Total Investment	Rs. 25998.80 Crores
Gross Output of MSMEs	Rs.  53198.68 Crore

(Source: Report of All India Census on MSMEs 2006-07).

1.2 Type of organization and their working enterprises in Haryana:

Table 2 shows the types of organization and number of enterprises working in it. The highest number of enterprises working are in the Proprietary type of organization that is 25,792 (77.80) and the lowest number is in Co-operative society 122 (0.37). so it can be revealed that people have more faith in proprietary type of organization and very less in co-operative society.

Table 3 Type of organization and their working enterprises:

(Figures are in Numbers and in brackets shown their percentage)

Organizations	Working Enterprises
Proprietary Enterprises	25792 (77.80%)
Partnership Enterprises	2669 (8.05%)
Private Enterprises	2260 (6.82%)
Public Limited Enterprises	552 (1.67%)
Co-operative Society Enterprises	122 (0.37%)
Others Type of Enterprises	1755 (5.29%)
Total Enterprises	33150 (100%)

(Source: Annual Report, 2013-14)

1.3 Export Overview and Vision of MSME in Haryana:

The Merchandise export of Haryana in the year 2020-21 was USD 12.92 Billion which is 0.37 Billion more as compared to FY 2019-20 having export of 12.55 Billion. The Merchandise Export of India has reduced from 313.36 Billion to 291.16 Billion in the FY 2019-20 to FY 2020-21 but in the same period there is an increase in the export in Haryana. This reflects towards the growth of MSME in the state as shown in Table 3. The state has 7th position in India in Export of merchandise. The state has a vision of INR 2 Lakhs crores by the year 2025.

Table  4

Source: Export promotion initiatives for Haryana MSME, Directorate of MSME, Government of Haryana.

Table   5

Export Vision of Haryana

Year  2020	2021	2025
INR  90000 Crores	INR  95000 Crores	INR  2 Lakhs  Crores

Source:  Export promotion initiatives for Haryana MSME, Directorate of MSME, Government of Haryana.

Export Overview of MSME in Haryana

Position	FY 2019-20	FY 2020-21
India’s Merchandise Export	USD 313.36 Billion	USD 291.16 Billion
Haryana’s Merchandise Export	USD 12.55 Billion	USD 12.92 Billion
Current Rank of Haryana	7th in India in Total Merchandise Export.

1. Anjoo Boora1, Nidhi Dembla (2019) Contribution of micro-small enterprises in Haryana, JETIR, Volume 6, Issue 4 www.jetir.org (ISSN-2349-5162). Annual Report, (2013-14).

2. Balu, V. (1991), “Financing of Small Scale Industries. A Sample Study Including Notified Backward Ares”, The Indian Journal of Economics, vol. 72, No. 285, pp. 258-0289. Compendium of MSME Policy and Incentive Schemes of Haryana, Committee for MSME & Start-up The Institute of Chartered Accountants of India (Set up by an Act of Parliament) New Delhi, January, 2021.

3. Export Promotion initiative of Haryana MSMEs, Directorate of MSME. Government of Haryana.

4. Ganguly, Nirmal (1988), “Small Scale Sector Problems and Prospects”, Yojana, Vol. 32, No. 4, March 1-15.         

5. HARYANA GOVT. GAZ. (EXTRA.), FEB. 26, 2019 (PHGN. 7, 1940 SAKA)

6. Haryana MSME Policy (2019),  Department of Industries & Commerce, Government of Mali, Haryana.  (MSME policy pdf pg 882. )

7. D.D. (1998) ‘Development of Micro, Small and Medium Enterprises of India: Current scenario and challenges’, SEDME (Small Enterprises Development, Management and Extension) Journal,VoI.25, No.4, December.

8. Sahapathi, A. and Khanna, P. (2011). An appraisal of small and medium enterprises in Haryana state of India. International Journal of Multidisciplinary Research, 1 (6), 312-324.

9. Sanchita (2010): Small Scale Industries in Post Reform Era: A Study of Management Problems of Women Entrepreneur In Haryana, un-published Ph.D thesis of Kurukshetra University, Kurukshetra.

10. Singh, R., Verma, O.P., and Anjum, B. (2012), ‘Small Scale Industry: An Engine of Growth’, Zenith International Journal of Business Economics & Management Research, Vol.2 Issue 5. Online available at http://www.zenith research.org.in

11. Sonia and Kansai Rajeev (2009), “Globalisation and its impact on Small Scale Industries  India”, PCMA Journal of Business, Vol. 1, No. 2 (June, 2009) pp. 135-146, ISSN0974-9977, (Available in http://www.Publishingindia.com/Upload/SampIe Article/PCMA-Sample- Article.pdf, Accessed 27.9.2012 at 9.23 a.m.). Statistical Abstract of Haryana, 2013-14.

12. Team MSME, APRIL 5, 2022, Haryana Government Initiatives and Schemes to Support MSMEs.