Union Cabinet approved creation of Indian Enterprise Development Services

The Union Cabinet on 21 December 2016 approved the creation of Indian Enterprise Development Services. A decision in this regard was taken at a Cabinet meeting headed by the Prime Minister Narendra Modi.

Details related to Indian Enterprise Development Services

• The service was created by subsuming 11 trades, recruitment to which had been done differently following different rules.

• Subsuming of the 11 trades into one umbrella service is also indicative of the government’s emphasis on promoting ease of doing business.

• These 11 trades were created in the 1950s and 1960s when there was a prevalence of a license, permit and quota raj in the Indian economy.

• The new service will be created in the Office of Development Commissioner (MSME) of the Ministry of Micro, Small and Medium Enterprises (MSME).

• It will help in achieving growth in MSME sector through a specialised and dedicated cadre of technical officers.

• The service is expected to boost the capacity and efficiency of the MSME.

• The Indian Enterprise Development Services will have initial cadre strength of 617 officers. Among them, 6 officers will be having joint secretary level status.

• These officers will oversee the functioning of 72 field offices of the Development Commissioner as well as the headquarters in New Delhi.

• Out of these 72 field offices, 30 are MSME development institutes and 28 are branch institutes.

About Indian Micro, Small and Medium Enterprises Sector

• The Indian MSME sector provides maximum opportunities for both self-employment and wage-employment outside the agricultural sector.

• The sector generates around 100 million jobs through over 46 million units situated throughout the geographical expanse of the country.

• With 38% contribution to the nation’s Gross Domestic Product (GDP) and 40% and 45% share of the overall exports and manufacturing output respectively it plays a key role in our economy.

• Besides the wide range of services provided by the sector, the sector is engaged in the manufacturing of over 6,000 products ranging from traditional to hi-tech items.