What are MSMEs and Government Policies for the Development of MSMEs in India?
International MSME (Micro, Small, and Medium-sized Enterprises) Day is Observed, When? Every year on June 27th, Micro, Small, and Medium-sized Enterprises (MSMEs) Day is observed by the UN (United Nations) to honor these businesses' contributions to the achievement of the Sustainable Development Goals (SDGs).
Why We Celebrate International MSME (Micro, Small, and Medium-sized Enterprises) Day and Its Significance?
On April 6, 2017, the United Nations Assembly recognized June 27th as 'Micro, Small and Medium Enterprises Day,' recognizing the importance of MSMEs to a country's economy. Micro, small, and medium-sized enterprises play a critical part in the development of most developing countries worldwide. They are also the foundation of all types of enterprises. Even a minimal investment is required to establish a firm. As a result, we might argue that an MSME is where a company begins. Poverty alleviation is a major challenge for a developing country, but it is one that may be met via MSMEs' employment.
The UN hopes that by commemorating MSMEs Day, countries will recognize and promote sustainable development goals. To commemorate this day, member nations host seminars, workshops, roundtable conversations with company owners, and other activities.
On April 6, 2017, the United Nations Assembly recognized June 27th as 'Micro, Small and Medium Enterprises Day,' recognizing the importance of MSMEs to a country's economy. Micro, small, and medium-sized enterprises play a critical part in the development of most developing countries worldwide. They are also the foundation of all types of enterprises. Even a minimal investment is required to establish a firm. As a result, we might argue that an MSME is where a company begins. Poverty alleviation is a major challenge for a developing country, but it is one that may be met via MSMEs' employment.
The UN hopes that by commemorating MSMEs Day, countries will recognize and promote sustainable development goals. To commemorate this day, member nations host seminars, workshops, roundtable conversations with company owners, and other activities.
What is MSME?
The Micro, Small, and Medium Enterprises (MSMEs) sector is a vital contributor to the country's socio-economic development. The sector has grown in prominence in India as a result of its contribution to the country's GDP and exports. The sector has also made a significant contribution to the development of entrepreneurship in India, particularly in semi-urban and rural areas.
Micro, Small, and Medium Enterprises (MSME) are categorized into two categories under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006: Manufacturing Enterprises and Service Enterprises. The businesses are further divided into groups based on their equipment investment and annual turnover.
The Micro, Small, and Medium Enterprises (MSMEs) sector is a vital contributor to the country's socio-economic development. The sector has grown in prominence in India as a result of its contribution to the country's GDP and exports. The sector has also made a significant contribution to the development of entrepreneurship in India, particularly in semi-urban and rural areas.Micro, Small, and Medium Enterprises (MSME) are categorized into two categories under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006: Manufacturing Enterprises and Service Enterprises. The businesses are further divided into groups based on their equipment investment and annual turnover.
| Criteria | Manufacturing | Service | ||
|---|---|---|---|---|
| Turnover | Investment | Turnover | Investment | |
| Micro Enterprises | Rs. 5 crores | Less than Rs. 25 lakh | Rs. 5 crores | Less than Rs. 10 lakhs |
| Small Enterprises | Rs. 50 crores | More than Rs. 25 lakh but less than Rs. 5 crores | Rs. 50 crores | More than Rs. 10 lakh but less than Rs. 2 crores |
| Medium Enterprises | Rs. 20 crores | More than Rs. 5 crores, but less than Rs. 10 crores | Rs.250 crores | More than Rs. 2 crores but does not exceed Rs. 5 crores |
Statutory Bodies for MSMEs in India:
- · National Small Industries Corporation (NSIC)
- Office of Development Commissioner (MSME)
- Khadi Village Industries Commission (KVIC)
- Coir Board
- National Institute for Micro, Small, and Medium Enterprises (NIMSME)
Background/ History of International MSME (Micro, Small, and Medium-sized Enterprises) Day:
A resolution passed by the United Nations General Assembly in April 2017 established June 27 as Micro, Small, and Medium-sized Enterprises Day. In May 2017,
A program titled "Enhancing National Capabilities for Unveiling Maximum Potential of MSMEs in Achieving the Sustainable development goals in Developing Countries" was started. The UN Peace and Development Fund's Sub-Fund for the 2030 Agenda for Sustainable Development provided funding.
A resolution passed by the United Nations General Assembly in April 2017 established June 27 as Micro, Small, and Medium-sized Enterprises Day. In May 2017,
A program titled "Enhancing National Capabilities for Unveiling Maximum Potential of MSMEs in Achieving the Sustainable development goals in Developing Countries" was started. The UN Peace and Development Fund's Sub-Fund for the 2030 Agenda for Sustainable Development provided funding.
The theme for International MSME (Micro, Small, and Medium-sized Enterprises) Day:
- The theme for International Day of MSMEs 2021 is - MSMEs - Key to an Inclusive and Sustainable
- The theme for International Day of MSMEs 2020 is -COVID-19: The Great Lockdown and its Impact on Small Business
- The theme for International Day of MSMEs 2019 is -Big Money For Small Business: Financing the SDGs
What are Government Policies for the Development of MSMEs in India?
The Indian government has devised a number of programs to promote the growth of micro, small, and medium-sized enterprises (MSMEs).
The Indian government has devised a number of programs to promote the growth of micro, small, and medium-sized enterprises (MSMEs). - The Pradhan Mantri MUDRA Yojana (PMMY) scheme sanctioned 48.92 million loans in March 2022, with a total sum disbursed of Rs. 3,02,948.49 crore (US$ 39.90 billion).
- MSMEs were given a budget allocation of Rs. 15,700 crore (US$ 2.14 billion) in FY22, up from Rs. 7,572 crore (US$ 1.03 billion) in FY21.
- The government has also given collateral-free automatic loans for enterprises worth Rs. 3 lakh crore (US$ 40.85 billion).
- The government granted funding worth Rs 10,000 crore (US$ 1.36 billion) in the Union Budget 2021 for the 'Guarantee Emergency Credit Line' (GECL) facility to qualifying MSME borrowers, giving the sector a significant boost.
- The Emergency Credit Line Guarantee Scheme (ECLGS) of Rs. 50,000 crore (US$ 6.55 billion) was given to the MSMEs sector in the Union Budget for 2022-23.
- The Indian government set out Rs 6,062.45 crore (US$ 808 million) for the Raising and Accelerating MSME Performance initiative on March 30, 2022. (RAMP). The initiative aims to increase market and credit access, develop institutions and governance at the national and state levels, strengthen center-state links and cooperation, handle late payment issues, and green MSMEs.
- The Special Credit Linked Capital Subsidy Scheme (SCLCSS) for the services industry was established by the Indian government in November 2021. This program will assist service-oriented businesses in meeting a variety of technical criteria.
- SAMBHAV, a national-level awareness initiative to promote entrepreneurship and local manufacturing, was started by the Ministry of Micro, Small, and Medium Enterprises in November 2021.
- Mr. Narayan Rane, Union Minister for MSMEs, will open the Rohtak Technology Centre in September 2021, which will train around 8,400 people every year.
- The Khadi and Village Industries Commission (KVIC) introduced the SPIN (Strengthening the Potential of India) initiative in September 2021 and built a pottery cluster in Varanasi under the SFURTI Scheme to serve around 1,100 marginalized potters.
- The Lok Sabha enacted a law called "Factoring Regulation (Amendment)" in July 2021 to help MSMEs with their payments.
- Mr. Narayan Rane, the Union Minister for MSMEs, announced the 'India Export Initiative' and the 'IndiaXports 2021 Portal' in September 2021. This program will assist exports in meeting their target of Rs. 2,928,000 crore (US$ 400 billion) by the end of FY22, and then increasing to Rs. 7,320,000 crore (US$ 1 trillion) by FY27.
- To strengthen the local silk industry and produce jobs, the Khadi and Village Industries Commission (KVIC) constructed the first "Silk Yarn Production Centre" in Odisha in September 2021.
MSMEs and Government Policies Sustainable Development Goals United Nations Assembly Micro Small and Medium Enterprises Pradhan Mantri MUDRA Yojana PMMY Government Policies for MSMEs Micro Small and Medium Enterprises Pradhan Mantri MUDRA Yojana MSMEs What is MSME History of International MSME Day Statutory Bodies for MSMEs
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