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Definition of MSME

EVOLUTION of MSME

contents Importance of MSME

Challenges towards MSME

Policy measures in MSME


MICRO
SMALL AND
MEDIUM The Government of India has enacted the
ENTERPRISE Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006 in terms
of which the definition of micro, small and
medium enterprises
EVOLUTION OF MSME

CONTENTS
➢INTRODUCTION
➢HISTORY OF MSME IN INDIA
➢MSMED ACT 2006
➢MINISTRY OF MSME
INTRODUCTION
❑Originated 4000 years ago.
❑Cottage industry

➢MSME in arts and anticrafts during the Mughal period.


➢17 th century – hub of world commerce.
HISTORY
➢The British invasion
➢The rise of MSME which started with the Khadi
industry.
➢MSMED Act 2006- micro; small and medium
enterprise development act 2006
➢Two stages – pre MSMED Act and post MSMED Act
Before- MSMED Act 2006
➢1947 - 2006
➢The GOI announced the Industrial Policy Regulations in 1948
➢5 year plans from 1950.
➢The Industries Act 1951.
➢GOI invited an International Planning team in 1953
➢The Industrial Policy Resolution 1956 followed by several statements
➢Deterioration of MSME’s during globalization.
MSMED Act 2006
▪ The micro; small, medium enterprise development act was notified in
2006.

▪ OBJECTIVES

i. PROMOTION
ii. DEVELOPMENT
iii. ENHANCE COMPETITIVENESS
MINISTRY OF MSME
❑Established in 9th may 2007.
❑History of the ministry of MSME

❑OBJECTIVES
1. Formulation and administration of rules, regulations and laws
related to MSME in India.
2. Training
3. Assistance
CONCLUSION
IMPORTANCE OF
MSME SECTOR
1. Creates large scale employment
2.Economic
stability in
terms of
growth
and
leverage
exports
3. Encourages inclusive growth
4.Cheap labor and minimum Overhead
5. Simple management structure for
enterpriseS
6. Pays an important role in making “make in
India” possible
The Government of India through the Ministry of Micro,
Small and Medium Enterprises has been implementing a number of
schemes with the objective of having a vibrant sector.

Policy making in the entrepreneurship field is complex and


messy.The mix of policy option will depend on a number of factors,
including the prevalence of existing level of entrepreneurial activity and
the existing MSMEs. Creation of employment opportunities and it’s
contribution to the national income are the basic distinguishing factor
of all the schemes and policies introduced by the government.
• The MSME development organisation was set up in
1945.
• Khadi and Village Industries Commission and
1948-1991 Coirboard were setup.
• MSME Development Institutes we’re set up all over
India.
• At state level, District Industries centres we’re set up.
• Testing centres we’re set up for quality certification.
• Supportive measures concentrated on improving
NITIATION..
infrastructure, technology and quality.
• Subcontracting exchanging were established.
HART OF

1991-1999 • The Small Industries Development Bank of India and


a technology development and modernization fund
were created.
• Delayed Payment Act was enacted.
• Ministry of MSME came into force from 1999.
• A Credit Linked Capital Subsidy were established.
• Market Development Assistance Scheme for MSME
was introduced.
1999-2006 • Consolations were held with stakeholders and the
lists of products reserved for production in MSE
Top 11 initiatives of
government
• Promulgation of Micro, Small and Medium
Enterprises Development Act 2006
• Khadi Village Industries Commission Act
1956
• Leader’s Employment Generation Program
• Procurement Policy for Micro and Small
Enterprises
• A scheme for Promotion of Innovation, Rural
Industry and Entrepreneurship (ASPIRE).
• Credit Guarantee Scheme
• Micro and Small Enterprises cluster development program
• National Manufacturing Competitiveness Program
• Technology Center Systems Program
• Prime Minister‘s Employment Generation Program (PMEGP)
• Pradhan Mantri Mudra Yojana. –(imp)
POLICIES
IN

2019.
Presenting the Budget 2019-20 in
Parliament,Nirmal Seetharaman unveiled a
slew of initiatives and new provisions to
tackle issues related to MSME sector in the
country.

Here are some of the key features for MSME


in union budget 2019...............
• Rs 350 crore allocated under Interest Subvention Scheme.
• Amendment in Factory Regulation Act, 2011.
• Pradhan Mantri Karam Yogi Mandhaan Scheme – pension benefit.
• Stand up India scheme-extended upto 2025.
• Sabka Vishwas Legacy Dispute Resolution Scheme.
• Make in India.
• Fund for Upgrqdation and Regeneration of Traditional Industries.
• A Scheme for Promotion of Innovation Rural Industry and
Entrepreneurship (ASPIRE).
Challenges towards
MSME
Major challenges
•Lack of Adequate Capitals and credits
•Poor and Inadequate infrastructure
•Lack of Skilled Human
Resources
•Inadequate Access and
marketing linkages
•Lack of Access to new
technology
•Dilatory and cumbersome
Regulatory Practices
•Low production Capacity
•Competition from multinational companies
•Complex labour laws