Sol –
MSMEs as a key factor in driving growth –
- Share of MSME in Gross Value Added (GVA) – Approx 30%
- Share of MSME manufacturing GVA in all India Manufacturing GVA – Approx 40%
- The share of export of MSME-specified products in all India exports – Approx 45%
- In 2024, MSMEs have reported employing 23.24 crore individuals
- Accommodate 4 times more labor than large firms for the same output
- 22% of MSMEs are women-owned
Government policies –
- MSME Development Act, 2006
- Definition of MSMEs and framework for the promotion and development of MSMEs.
- Facilitates access to credit, technology, and markets
- Prime Minister’s Employment Generation Programme (PMEGP)
- Financial assistance up to ₹25 lakh for manufacturing and ₹10 lakh for service sectors.
- Subsidy rates: 35% for the general category and 50% for SC/ST, women, and other marginalized groups.
- Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE)
- Aimed to facilitate an additional ₹2 lakh crore credit for MSEs at reduced interest rates
- The credit limit for guarantee coverage under the scheme was enhanced from ₹2 crore to ₹5 crore
- Udyam Registration Portal started in July 2020
- To simplify the process of registering
- Udyam Assist Platform (UAP) in January 2023
- By SIDBI
- To formalize Informal Micro Enterprises (IMEs)
- Over 2.39 crore informal micro enterprises have been formalized through the platform, making them eligible for priority sector lending benefits.
- MSME Samadhan
- Delayed Payment Monitoring System
- Gives information about individual CPSEs, central ministries, state governments, and other buyers regarding the payments pending with them in respect of the MSEs.
- The portal also facilitates MSEs in filing their delayed payment-related complaints online
- Stand-Up India Scheme
- Provides loans ranging from ₹10 lakh to ₹1 crore for setting up greenfield enterprises
- Focuses on SC/ST and women entrepreneurs
- Micro and Small Enterprises Cluster Development Programme (MSE-CDP)
- Supports infrastructure development in MSME clusters.
- Financial assistance of up to 60% for common facility centers and technology upgrades
- Benefited more than 1,200 clusters across India, enhancing productivity and competitiveness
- Digital MSME Scheme
- Promotes digitalization through financial assistance for technology upgradation and digital marketing
- Training programs for MSME entrepreneurs
- The scheme aims to boost the digital presence of over 2 lakh MSMEs by 2025
- Make in India Initiative
- Focuses on ease of doing business, innovation, and investment
- Market Development Assistance Scheme
- Provides financial support for MSMEs to participate in trade fairs and exhibitions.
- Aims to enhance market visibility and competitiveness
- Champions portal
- It is a single-window grievance redressal portal for Micro, Small & Medium Enterprises
- Raising and Accelerating MSME Performance Scheme (RAMP) –
- RAMP receives result-based funding from the World Bank
- National Small Industries Corporation (NSIC)
- Offers procurement and marketing support for small-scale industries
- Provides a single-window clearance for various services
- Production-Linked Incentive (PLI) Scheme
- Offers incentives based on incremental production volumes for sectors like electronics, pharmaceuticals, and textiles
- A budget allocation of ₹1.97 lakh crore over five years (2020-2025) for various sectors
- Skill India Mission
- Provides training programs in collaboration with various sectors to enhance employability
- Aim to skill over 400 million people by 2022
- Atmanirbhar Bharat Abhiyan
- ₹50,000 crore equity infusion through the Self-Reliant India fund
