Updated on: December 17th, 2019 5:08 PM

National Manufacturing Competitiveness Programme

The National Manufacturing Competitiveness Programme (NMCP) is a program launched by the Government of India to improve global competitiveness among the Indian MSMEs. Conceptualized by the National Manufacturing Competitiveness Council, the program was started in during the financial year 2007- 08. In this article, we look at the National Manufacturing Competitiveness Programme (NMCP) in detail.

Building a Competitive MSME Sector

Manufacturing is a major sector of India's economy contributing about 17% of the country's GDP.  For the manufacturing sector and the entire economy, SMEs are a backbone contributing about 45 % to the manufacturing output, 40 % of the total exports, and enables major employment opportunities across the country. With a goal towards improving the manufacturing sector to about 25% of the GDP, the Central Government implemented the National Manufacturing Competitiveness Program (NMCP) to aid Indian SMEs scale up to global levels. For this the central government is tasked with policy incubation in domains such as IT adoption, manufacturing management, skill development; access to capital, technical simplification, marketing and governance reform. The NMCP initiative aims to address these aspects and develop the scale of Indian micro, small and medium manufacturing enterprises (MSME) and aid them to contend in the global landscape. It also seeks to supply inputs to help local manufacturers contend with foreign entrants into the domestic market.

Objectives of NMCP

The National Manufacturing Competitiveness Council (NMCC) has devised a five-year national manufacturing programme comprising of schemes related to promotion of ICT, mini-tool rooms, design clinic and marketing support for SMEs. Some of the main objectives of the NMCP are:

• Focus on improving competitiveness  dealing with MSME sector
• Key initiative for survival of MSMEs in domestic  or  international markets
• A catalyst approach  or create role models
• Implementation with Public Private Partnership
• Challenges for execution
• Essentially a Supply side initiative
• Fear of MSMEs in revealing data.
• MSMEs are uncertain in investing their contribution

Implementation of NMCP

The MSME Ministry employs the programme under the guidance of the National Manufacturing Competitiveness Council. The 10 chief components of the programme aim to address MSME competitiveness issues in the Public-Private-Partnership (PPP) mode. The components of the NMCP are as subsequent:

• Support related to entrepreneurial and managerial development of SMEs by means of incubation
• Improving quality through Quality Management Standards in addition to Quality Technology Tools
• Technology up gradation and quality certification assistance to SMEs
• Marketing assistance to MSMEs
• Marketing assistance for SMEs and technology upgradation activities
• Design clinic scheme to convey design or innovation expertise
• Promotion of ICT
• Setting up Mini Tool Room in addition to Training Centres
• Building awareness on Intellectual Property Rights
• National Programme related to function of Lean Manufacturing

The NMCP programme is still under the process of implementation. Total expenditure of nearly Rs. 122.00 crore has been made so far, given that inception of the programme. The different programmes of this Ministry in general and NMCP programme in particular are expected to improve competitiveness of Indian MSMEs to face solid competition from other countries including that of China and other neighboring countries.

Target Areas of NMCP

The Government has announced formulation of a National Manufacturing Competitiveness Programme (NMCP) with a plan to support the Micro, Small and Medium Enterprises (MSMEs) in their attempt to become competitive. The purpose of NMCP is to expand global competitiveness among Indian MSMEs. This programme targets at developing the complete value chain of the MSME sector by means of the following components:

• Lean Manufacturing Competitiveness Scheme related to MSMEs;  
• Promotion of Information & Communication Tools (ICT) in the MSME sector;
• Technology and Quality Upgradation Support related to MSMEs;
• Design Clinics scheme related to MSMEs;
• Enabling Manufacturing Sector to be rendered competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT);
• Marketing Assistance and Technology Up Gradation Scheme relevant for MSMEs;
• National campaign for increasing awareness on Intellectual Property Rights (IPR);
• Support for Entrepreneurial and Managerial Development of SMEs by means of Incubators.     
• Bar code under the Market Development Assistance (MDA) scheme.