MSME sectors have played a crucial role in the overall economic development in India. It has resulted in the creation of employment opportunities and output growth. It is a widely accepted belief that Micro Small and Medium Enterprises (MSMEs) are the engines of economic development and for equitable development. The government has introduced various measures to uplift MSMEs, and that is exactly what this article cover.
What is MSME?
MSME stands for Micro, Small and Medium Enterprises. As per the MSMED (Micro, Small and Medium Enterprise Development) Act, 2006 the enterprises are classified into two-
Manufacturing Enterprises: Engaged in the manufacturing /production of goods in any industry.
Service Enterprises: Engaged in providing or rendering services.
Revised classification of MSME
Manufacturing and Services
Investment less than 1 Crore rupees and Turnover less than 5 Crore rupees
Investment less than 10 Crore rupees and Turnover less than 50 Crore rupees
Investment less than 50 Crore rupees and Turnover less than 250 Crore rupees
Government Initiatives to uplift MSME sectors
CHAMPIONS Portal: A unified, robust, and technology-driven platform was envisaged for helping and promoting the MSMEs of the country. CHAMPIONS means Creation and Harmonious Application of Modern Processes for Increasing Output and National Strength. This is to make the smaller units big by helping and handholding.
Government Scheme to promote MSME sectors
Some of the government schemes are as follows:
Prime Minister Employment Generation Programme (PMEGP);
Credit Guarantee Trust Fund for Micro and Small Enterprises;
Interest Subvention Scheme;
Credit Linked Capital Subsidy Scheme (CLCS) for Technology Upgradation; and
The following benefits can be enjoyed on MSME registration:
Enjoying various schemes by the government for MSME;
Protection from delay in payment by buyers;
Reduction of 50% fee for filing patents and trademarks;
Exemption while applying for government tenders;
Easier to get licenses, approvals and registration;
Loans without guarantee and low-interest rate on loans;
Concession on electricity bills; and
And various other benefits.
India being the fastest growing economy, shall create more awareness regarding the MSME sectors and emphasize on generating more employment, improving industrialization, decrease in imports and increase in imports, up-gradation of technology, competitive business environment, development of knowledge, wealth creation and economic growth. By registering and using the benefits and the scheme under MSME, it will help in achieving the growth and economies of scale.
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on criminal and corporate law. He is a creative thinker and has a great interest in exploring legal subjects.