Haryana is no longer limited to being a state infamous for its agriculture and highways. It has now emerged as a destination for manufacturing expansion and upscaling of small businesses. A lot of advancement in the state of Haryana can be attributed to the PADMA ( Programme to Accelerate Development for MSME Advancement ) Scheme. This framework is a state-level initiative that has successfully been able to combined the incentives and infrastructure. This has subsequently led to the empowerment of micro, small, and medium enterprises. Haryana has set an ideal example of a state that has led to a seamless integration of people, policies, and the regional areas. 

How Have Haryana’s MSMEs Benefited From The PADMA Scheme? 

The PADMA scheme is an umbrella framework that has multiple schemes under its functioning. These schemes mainly include cluster investment development, export promotion, capital investment subsidy, and acceleration of entrepreneurship. Most importantly, it has been able to provide interest subsidies for the MSMEs. 

The MSMEs in India have been able to experience a significant amount of growth. But they also face some common challenges, such as limited infrastructure, an underskilled workforce, location-based skews, and fragmented value chains. With the PADMA scheme, the MSMEs in Haryana were able to get: 

• Decentralised industrial growth
• Incentives and infrastructure for the growth of smaller units
• Promotion of value chains and locally relevant products. This has made the growth of MSMEs free from dependence on metropolitan cities and industry corridors. 

The Strategy of Development of Haryana MSMEs

The growth of MSMEs in Haryana has been mainly dependent on the three pillars, namely, infrastructure, ecosystem, and incentives.

Development of Infrastructure and Industrial Clusters

The small enterprises are in dire need of dedicated infrastructure facilities. These facilities include common facility centers, clusters, and mini-industrial parks. This scheme is able to build one cluster per block. Haryana was successfully able to build mini-industrial parks in 143 blocks. Under this state-funded scheme, the barrier of finding the appropriate land, clearance, and utilities has been done away with. 

Financial Support Offered By The Government 

The MSMEs have been able to thrive only because of the incentives and special support offered to the PADMA scheme by the government. They have been offered duty exemptions, subsidies, and special support when it comes to designing and branding. The growth of MSMES can be hindered if they do not get the rightful access to capital. Therefore, the support offered by the government can help in doing away with the cost burden. They are able to introduce a more balanced growth geography with the investments made in the lower growth zones and a reduction in the risk-and-cost equation. This proves to be especially beneficial for the small business owners. 

The Ecosystem of Governance in Haryana

For the enhancement of the ecosystem, the government is investing in various reforms. The common facilitation centres and export readiness have further supported the small businesses. The state has simplified hundreds of compliance requirements related to businesses and citizens alike. It has removed around 446 obsolete compliance requirements and also decriminalised around 27 offences. The industrial parks in the Tier 2 and Tier 3 cities have also been given grant support. These incentives for the infrastructure have helped in streamlining the governance and made a fertile ground for the growth of small businesses. 

How Have MSMEs in Haryana Benefited From The PADMA Scheme?

Diversification

We earlier saw progress only in the areas that were in the vicinity of the NCR region. The other smaller districts and blocks were often overlooked. The PADMA scheme successfully cleared this barrier. It has led to more employment opportunities for the youth and an increased scope for regional development. 

Reduction in Manufacturing Time

As the infrastructure is already set up under the mini-parks, it has significantly reduced the time that was earlier required to set up the manufacturing units. The factory spaces are now pre-equipped and ready to use. The manufacturers no longer have to wait for years to get the required clearances and acquire the land of their choice. 

The Promotion of Value-Added Clusters

Rather than just raw manufacturing, the policymakers have been successfully able to encourage the value-added production. They have been able to identify the product segments for every block. This has reduced the dependence on foreign goods and improved the employment opportunities in the local regions. 

Empowerment of Women and Rural Entrepreneurs

The employment opportunities offered by the PADMA scheme are more inclusive. They have been able to include people from Tier 2 and Tier 3 cities, women, and the rural population. The enterprise models have now become more manageable for first-time entrepreneurs, owing to the reduced set-up costs and saved time. 

How is Haryana Tackling The Commonly Faced Challenges? 

Haryana is still facing some challenges when it comes to land acquisition and ensuring adequate power supply to the MSMEs. These problems are commonly faced in the densely populated and semi-urban zones. There is also a need to provide adequate training to the workforce, as the majority of them remain underskilled. The state also needs to ensure that the logistics suppliers and the technology support teams work in tandem with each other. Apart from financial support, these MSMEs are also in need of appropriate staff members who can help streamline the everyday processes.  

A lot of these challenges have been proactively addressed by the government of Haryana. The infrastructure planning and integrated logistics have been ensured by the coming together of national-level frameworks along with state policies. The government has also promoted state facilitation hubs and common facility centers, which have helped in expanding the capabilities of these small businesses. Now it is easier to activate the infrastructure and make full use of the utilities, owing to the reduced delays regarding approvals. Now the development is more planned through the establishment of mini industrial parks in every block. The impact of these industrial parks is more substantial because of the coming together of government incentives, infrastructure, and alignment of processes. 

Final Thoughts

The widespread popularity of the PADMA scheme in Haryana has not been an overnight success. It has been a strategic, continuous effort from various business departments. The governance has been simplified, and the industrial parks have been offered various subsidies and capital support. The entrepreneurs are now facing fewer roadblocks when it comes to getting the required clearances. For the general populace, it has opened up new avenues for industrial growth and employment opportunities. These block clusters will soon transform into vibrant hubs, and they will gradually join the global supply chains. 

Haryana is on its way to becoming a powerhouse for small enterprises, and it has also become a model for the other states that want to reach their industrial potential. With the scaling of MSMEs in the Tier 2 and Tier 3 cities, India will soon witness the fourth industrial revolution.