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
