Monday, October 1, 2012

New jobs in SMEs: Gujarat ranks 14th

West Bengal Tops Chart, Says Assocham Report 

The buzzing industrial development in the state has helped little in creating jobs in small and medium enterprises sector. At least that’s what a recent industry body report which compared job creation in SME sectors in different states of the country suggests. According to Associated Chambers of Commerce and Industry of India (Assocham) report, Gujarat ranks 14th in the country when it comes to creating jobs in the SME sector between April 2011 to February 2012.
    The report said that a meager 8,058 jobs were generated in Gujarat in the sector during the period April ’11 to February 15, 2012. In the same period, 43,000 fresh jobs were created in the sector in West Bengal, making it the frontrunner in the list of states. Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Assam, Karnataka,Bihar,Rajasthan,MadhyaPradesh,Kerala, Jammu and Kashmir, Maharashtra remained ahead of Gujarat in creating jobs in the SME sector.
    The report said that Gujarat government helped about 1,494 SMEs which utilized a margin money subsidy worth over Rs 52 crore. The report said that over 4 lakh SMEs are currently operating in Gujarat with majority in the sectors textile (21.4%), metal (31.9%), chemical (7.6%) and tobacco products (7.5%).
    Itsaidthat SMEunits accountedfor totalinvestments worth over Rs 30,000 crore and an annual production worth about Rs 35,000 crore withAhmedabadbeing theleading SMEindustry clusters followed by Rajkot and Surat.
    “Gujarat is ranked 14th in a state-wise analysis of number of SMEs assisted, margin money utilized and estimated employment generation during the period. The state government is being urged to further strengthen and widen the base of the sector in Gujarat,” the report said.
    The report said that due to steep and steady rise in raw material prices, interest rates and soaring transaction costs, the MSME sector in the state is reeling under huge pressure.
    “The profit margins areshrinking and various micro, small and medium industrial units in the state are reluctant to expand their operations,” the report said. However, Gujarat Chamber of Commerce and Industries (GCCI) members suggest most SMEs in the state had gone for an expansion in 2010-11 when in most parts of the country activity was low.
    An earlier report by CRISIL, a research and ratings agency,on thefinancial performanceof SMEs in 2010-11 compared to 2009-10, said that Gujarat-based SMEs had grown by 31% compared to country’s average of 26%. It said that the profit after tax (PAT) margin in Gujarat is 6.66% which is higher than the national average of 3.75%.
ODD JOBS

• Gujarat 14th in country in creating jobs in the SME sector between April 2011 to February 2012

• Report said 8,058 jobs were generated in Gujarat in the sector

• 43,000 fresh jobs — the most — were created in the sector in West Bengal

• AP, UP, Tamil Nadu, Assam, Karnataka, Bihar, Rajasthan, MP, Kerala, J&K, Maharashtra were all better

• Gujarat-based SMEs had grown by 31% compared to country’s average of 26%.