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WELCOMEGroup-1

MICRO, SMALL AND MEDIUM ENTERPRISESIN INDIA-AN OVERVIEW

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DEFINITION OF MSME

In India, the enterprises classified broadlyinto two categories

1. Manufacturing and2. Those engaged in providing /rendering

services.

3. Above both further classified into

1. Micro2. Small

3. Medium enterprises

based on their investment in plant and

machinery/ equipment.

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Manufacturing Enterprises

Micro Rs. 2.5 million (US$ 56000)

Small Rs. 50 million (US$ 1.1 million)

Medium Rs. 100 million (US$ 2.2 million)

Services Enterprises

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MSME classification based onMSME classification based oninvestment limit in plant andinvestment limit in plant andmachinery:machinery:

MicroMicro Rs. 1 million (US$ 22000)Rs. 1 million (US$ 22000)

SmallSmall Rs. 20 million (US$ 0.4Rs. 20 million (US$ 0.4

million)million)

MediumMedium Rs. 50 million (US$ 1.1Rs. 50 million (US$ 1.1

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INTRODUCTION - MSME

Major plank of Indias EconomicDevelopment

Strategic Importance due tocontributions in terms of Output, Export& Employment

To sustain & accelerate growth, MSMEsector needs to be thoroughlycompetitive

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PERFORMANCE AND CONTRIBUTION OF MSMEsMSMEs

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a) Reservation of items for exclusivemanufacturing in small sector

b) Preferential credit support

measuresc) Preferential government

procurement policies

d) Fiscal concessions

e) Infrastructural development likedevelopment of industrial estates,testing labs, common facility

centers. 6

SPECIFIC POLICY,BOOSTING THEGROWTH OF TINY, SMALL ANDCOTTAGE INDUSTRIES:

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Institutional Support Structurefor MSMEs in India

At Federal Level

1. Ministry of MSMEs

2. Small Industries

Development

Organization

(SIDO)

3. National SmallIndustries

Corporation(NSIC)

4. Khadi & Village

Industries

Commission(KVIC)5. Coir Board

6. Entrepreneurship

Development

Institutions (EDIs)

MSME

At State Level1. Directorate of

Industries

2. District Industries

Centres

3. State Finance

Corporation

4. State Industrial

Development

Corporation

5. Technical

Consultancy

Organisations

6. Entrepreneurship

Development

Institutions (EDIs)

Others

1. Industry

Associations

2. NGOs

3. Banks/Financial

Institutions

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INTRODUCTION - MSME

MSMEs are supported by Govt. of India & itsagencies asMinistry of MSMENational Small Industries CorporationSmall Industries Development BankDistrict Industries Centre

ForModernization

ProductivityTechnological NeedsSkill Development & Up gradationAdequate & Affordable assistance in Finance

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SOMEIMPORTANT SCHEMES OF MINISTRY OF MSME, GO

1. Credit guarantee scheme2. ISO 9000/14001 certification fee reimbursement scheme3. Micro & small enterprises cluster development programme4. Credit linked capital subsidy scheme

5. Intellectual property rights for msmes6. Incubator scheme7. Quality management standards/quality technology tools8 Mini tool room9 Marketing assistance ( bar code)

10. lean manufacturing competitiveness programme11. Technology up gradation12. Skill development13. Marketing & procurement14. Export promotion15. Infrastructural development16. National awards

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MSME DEVELOPMENT ACT 2006 (MSMED)

MSMED Act 2006 promulgated in order to :

1. Remove impediments due tomultiple laws

2. Introduce statutory consultativeand recommendatory bodies onMSME policies

3. Improve registration proceduresof MSMEs

4. Statutory basis for purchasepreference and credit policies

5. Improve realization of payments10

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Micro, Small and Medium EnterprisesDevelopment Act, 2006

1. Industry replaced by enterprisewhich include serviceenterprises also.

2. Ambit of sector enlarged tocover medium enterprises.

3. Constitution of MSME Board

1. Simplification of registration

Salient Features

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5. Policy of preferentialprocurement from MSMEs

6. Progressive credit support

7. Penalty for delayed payments

8. Provision for exit policy

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Thank you