What is it that poses hurdle to PM Narendra Modi's Make in India

Prime Minister Narendra Modi's dream project "Make in India" has hit hurdles as a recent report card of the country's small and medium industries has presented a dismal picture.

A report by the Quality Council of India (QCI) has concluded that 72 per cent of Micro, Small and Medium enterprises (MSMEs) don't even qualify to be rated on standards. Only 28 per cent of companies received bronze, silver and gold markings. Not even a single enterprise qualified to be rated in the diamond or platinum category.

The report said that most of the companies are in such poor shape that majority of them even do not meet basic parameters to even appear on the rating charts. The finding is the outcome of a pilot report prepared by QCI to assess the condition of MSMEs in the country for implementation of zero effect and zero defect (ZED) excellence in the sector.

The idea of ZED was first coined by PM Narendra Modi when he said: "Our manufacturing should have zero defect so that our goods are not returned from the international marketplace, and our manufacturing should be with zero effect, so that it has no negative impact on the environment."

The report also highlights the major concern gripping the MSME sector which includes unskilled manpower, outdated technology, funding and Inspector Raj.

To build awareness on the ZED model, 43 workshops were conducted covering 1,851 MSMEs in 30 cities. Feedback from the companies revealed that these industries, which are the backbone of 'Make in India', are still plagued with problems like outdated technologies and Inspector Raj.

The list of problems is long and alarming. About 55 per cent of MSMEs reported unskilled workforce as the major problem. Similarly, 53 per cent of the industries singled out outdated technology as the reason behind dismal performance. Thirty eight per cent raised concern on funding procedures.

They also said that interest rates should be more competitive.

About 30 per cent of MSMEs said that government regulations should be more friendly and streamlined and Inspector Raj should be reduced.

Considering the need to strengthen the MSME sector, Department of Industrial Policy and Promotion (DIPP) asked the QCI to conduct the national pilot project on implementation and testing of ZED maturity assessment model.

"This is like a litmus test of the sustainability of zero effect and zero defect (ZED) model for Make in India," said R P Singh, secretary general QCI.

During the pilot project, 64 companies were prepared for the ZED process and a final rating was given to them for assessment.

The report said that the quality standards "highlight a critical gap between the perceived maturity level of the MSMEs and the actual status of practices on quality and environmental consciousness. It points out to the urgent need of national scale assessment and handholding of MSMEs through the ZED scheme".

The pilot project covered MSMEs from multiple sectors with most industries from the auto-component sector. The percentage of MSMEs which received a rating from a particular sector was highest in textiles.

(In association with Mail Today Bureau)