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  • 1. Small and medium Scale Enterprise in IndiaSour htp:/msme.gov ce: t / .in/ 2 0 .0 3 .1
  • 2. SMALL AND MEDIUM SCALE ENTERPRISES
  • 3. WHAT IS SME ?
  • 4. DEFINITION OF SME : SME is the abbreviation for Small and Medium Enterprises. These enterprises can be rightly called as the backbone of the GDP of India. The SME sector in India is growing at an exceptionally fast rate due to which it is proving to be beneficial to the Indian Economy.”
  • 5. DEFINITION OF SME IN INDIA IN CONTEXT OF MANUFACTURING INDUSTRIES:DESCRIPTION INR USDMICRO ENTERPRISE UPTO 25 LAKH UPTO $62500SMALL ENTERPRISE ABOVE 25LAKH—AND ABOVE $62500 AND UPTO 5CRORE UPTO $1.2 MILLIONMEDIUM ENTERPRISE ABOVE 5 CRORE AND ABOVE $1.25 MILLION UPTO 25 CRORE AND UPTO $2.5 MILLION
  • 6. SERVICE ENTERPRISEDESCRIPTION INR USDMICRO ENTERPRISE UPTO 10 LAKH UPTO $ 25000SMALL ENTERPRISE ABOVE 10 LAKH—2 ABOVE $25000—UPTO CRORE $ 0.5 MILLIONMEDIUM ENTERPRISE ABOVE 2 CRORE– 5 ABOVE $ O.5 CRORE MILLION-- $1.5MILLION
  • 7. Micro enterprise:- An enterprise where investment in plant andmachinery [original cost excluding land and building and the itemsspecified by the Ministry of Small Scale Industries] does notexceed Rs.50 lakh.Small enterprise:-An enterprise where the investment in plant andmachinery [original cost excluding land and building and the itemsspecified by the Ministry of Small Scale Industries] is more thanRs.25 lakh but does not exceed Rs.5 crore.Medium enterprise:- medium enterprise is an enterprise where theinvestment in plant and machinery [original cost excluding landand building and the items specified by the Ministry of Small ScaleIndustries] is more than Rs.5 crore but does not exceed Rs.10crore.
  • 8. TYPE’S OF SME’SSMEs have been established in almost all-majorsectors in the Indian industry such as:· Food Processing· Agricultural Inputs· Chemicals & Pharmaceuticals· Engineering; Electricals; Electronics· Electro-medical equipment· Textiles and Garments· Leather and leather goods· Meat products· Bio-engineering· Sports goods· Plastics products· Computer Software, etc.
  • 9. FIGURE’S ABOUT SME’S The Indian SME market is worth $5 billion. There are over 11 million SME units in India that produce more than 8,000 products. SMEs Contribution towards GDP in 2011 was 17% which is expected to increase at the rate of 22% by 2012. SMEs are the fountain head of several innovations in manufacturing and service sectors, the major link in the supply chain to corporate and the PSUs. By promoting SMEs, the rural areas of India will be developed.
  • 10. IMPORTANCE OF SME’S Employment generation. Use of local resources. Balanced regional development Promoting exports Efficient use of productive factors.
  • 11. BENEFITS OF REGISTERD SME’S Credit benefits Exemptions under direct tax laws Incentives and concession in power tariffs Price and purchase preference of goods produced.
  • 12. ROLE OF SME’S IN THE GROWTH OF INDIAN ECONOMY 35% 40% T A OUT OFINDIA OT L PUT INDUST IA E T R L XPOR 60 MN 1.3 MN E PL M NTG NE T D M OY E E RAE J PE Y A OB R E R 8000 90%QUAIT PR L Y ODUCTG NE AE BYT MF INDIA A E R T D HE OR N ND INDUST IA UNITININDIA R L INT R T LM R T E NAIONA A KE
  • 13. REASON BEHIND SURVIVAL & GROWTH OF SME’S IN INDIAN ECONOMY
  • 14. REASON BEHIND SURVIVAL & GROWTH OF SME’S IN INDIAN ECONOMY Govt. policy, tariff and easy loan with low interest rate for SME’S in help to grow these enterprises. Foreign and local fund providers are taking huge interest in the small and medium enterprises of India. Banking sector has also shown a keen interest in lending credit to these enterprises. Recent mergers have taken place in the sector. The sector has significantly contributed towards the domestic production as well as the export earnings.
  • 15. REASON BEHIND SURVIVAL & GROWTH OF SME’S IN INDIAN ECONOMY  Low investment is required to start and maintain these enterprises.  The sector has contributed impressively towards job creation and increase in individual incomes.  Technological growth is also a factor for growth of SMEs in India as there are several trade portals and “ BUISNESSESS DIRECTORIES “ available online with huge database of buyers, sellers, manufacturers who are basically back bone of SMEs.
  • 16. CHALLENGE AHEAD FOR SME’S Infrastructure needs to be developed for setting up the SMEs in the rural sector of the country. Transportation, electricity and communication are the main parts of the infrastructure required. Technology need to be evolved so that quality products are manufactured by the sector. Lack of information about the inputs, including raw material, machinery and skills, is one critical challenge in front of the owners of these enterprises. High level of research and development is required.
  • 17. GOVT. DEPARTMENT FOR SME’S IN INDIA Small & Medium Business Development Chamber of India Msme govt of india India International Trade Centre (IITC-India) Europe-India SME Business Council (EISBC) Maharashtra Industrial and Economic Development Association SME Export Promotion Council Indian Young Entrepreneurs’ Forum SME Training Institute of India SME Technology Development Council
  • 18. SCHEME OF GOVT. OF INDIA FOR SME’S Rajiv Gandhi Udyami Mitra Yojna ( RGUMY) Marketing Assistance ( Bar Code) Skill Development Export Promotion Infrastructural Development National Awards Credit Guarantee Scheme
  • 19. SCHEME OF GOVT. OF INDIA FOR SME’S ISO 9000/14001 Certification Fee Reimbursement Scheme Micro & Small Enterprises Cluster Development Programmed Credit Linked Capital Subsidy Scheme Intellectual Property Rights for MSMEs Quality Management Standards/Quality Technology Tools
  • 20. RAJIV GANDHI UDHAMI MITRARajiv Gandhi Udyami Mitra Yojna ( RGUMY)Rajiv Gandhi Udhyami Mitra Yojna (RGUMY) is toprovide handholding support and assistance to thepotential first generation entrepreneurs who havealready successfully completed EDP/SDP/ESDP/VTprogrammes, through the selected lead agencies i.e.‘Udyami Mitras” in the establishment and managementof the new enterprises in dealing with various proceduraland legal hurdles and in completion of variousformalities required fo setting up and running of theenterpriseUdyami Mitras : Under RGUMY, financial assistance would beprovided to the selected lead agencies i.e. UdyamiMitras for rendering assistance and handholding supportto the potential first generation entrepreneurs.
  • 21. MARKETING ASSISTANCE/SUPPORT TO MSES (BAR CODE)T obj iv oft scheme is t popul r t Ba code regist aion a mot ae t he ect e his o aize he r r t nd iv t he smala micro ma ct ingent pr t a t Ba Code Cerificaion on l rge l nd nufa ur er ises o dopt he r t t a scae a t sel t v l a product w l ide a ena e higherexpor pr l nd o l heir aue dded s ordw nd bl t ice reaizaion Itaso hel in domest maket (w esae &ret il 75% ofa lfee ( l t l ps ic r ing hol l a ). nnua recuring)ofBa Code Cerificaion fort fir t yeas a reimbur t M r r t t he st hree r re sed o SEs undert scheme. he
  • 22. SKILL DEVELOPMENTW h a obj iv t creae sel empl it n ect e o t f oyment t ent , he repreneur a skil dev opment ship nd l elscheme is impl ed byOffice oft DC(SM ’S)t ement he E hrough it net or of59M E_ DIS s wk SMa t br nches,. T progr ms a conduct incl Ent nd heir a he a re ed ude repreneur Dev opment ship el ,Entrepreneur a Skil Dev opment M na ship nd l el , a gementDev opmenta Business Skil el nd lDev opment T progr m a conduct forunempl yout a instanomina fee el . hese a re ed oyed h ga la in some ca st is aso prov nd ses ipend l ided.
  • 23. INFRASTRUCTURE DEVELOPMENTForsetingup ofindustia est t a t dev op infr stuct fa it l pow distibut net or t r l aes nd o el a r ure cil ies ike er r ion w k,w t t ecommunicaion, dr ina a polut cont fa it roa ba r wmaer l st a aer el t a ge nd l ion rol cil ies, ds, nks, a t ia, or gea maket outet common ser ices fa it a t nd r ing l s, v cil ies nd echnol lba up ser ices et forM Es, t ogica ck v c. SM heint aed Infr st uct a Dev opment(IID)Scheme w s l unched in 1994 t scheme cov s r a a egr t a r ur l el aa . he er ur l sw la ur n a s w h aprov of50 reser aion forr a a s a 50 industia pl s a t be el s ba rea it ision % vt ur l rea nd % r l ot re oreser ed fort micro ent pr T scheme aso prov up gr daion/ rengt v he er ises. he l ides a t st hening oft heinfr stuct a fa it in t exist industia est t T est t costt setup a IID Cent is R a r ur l cil ies he ing r l aes. he imaed o n re s.5 Crore. Centa Gov nmentprov 4 % in ca ofgener lst t a up t 8 % forNorh Ea r l er ided 0 se a aes nd o 0 t stR egion, J H.Pa Utr kha a gr nta rema a &K, . nd t a nd s a nd ining mountcoul be l n fro SIDBI/ nk/ ncia d oa Ba Fina lInst ut ort st t Funds. it ions he ae
  • 24. CREDIT GUARANTEE SCHEMET ensure beterfl ofcreditt micro a smalent pr byminimizingt r o t ow o nd l er ises he isk percept ofba fina linst ut in l ion nks/ ncia it ions endingw houtcolaer lsecur y t it lt a it , he Gov nmentl unched CreditGuaa ee Fund Scheme forSM ’Sin A 20 0. t er a r nt E ugust 0 his scheme cov s colaer l-free creditfa it ext er l t a cil y ended byel e l igibl endinginst ut t it ions o newa exist SM ’Sforl n upt R 10 l kh perbor ingunit T guaa ee nd ing E oa o s. 0 a row . he r nt cov is upt 75% oift creditsa ioned (8 in respectofl ns upt R 5 l kh a er o he nct 5% oa o s. a nd 8 % forl ns prov t SM ’Sow / aed byw a all ns in t Norh 0 oa ided o E ned oper t omen nd l oa he t Ea R ) st egion
  • 25. ISO 9000/14001 CERTIFICATION FEE REIMBURSEMENT SCHEMET enha t compet iv st h oft SM ’S, t Gov nmentint o nce he it e rengt he E he er roduced a scheme t incent es t o iv echnol lup gr daion , quait improv ogica a t ly ementa beter nd t environmentma gementbyt SM ’S. T scheme reimbur 75% oft fees, na he E he ses he subj t ama ect o ximum ofR 75,0 0-fora ingQuait M na s. 0 / cquir l y a gementSyst em (QM ISO90 0cerificaion a /orEnv S)/ 0 t t nd ironmentM na a gement(EM IS)14 0 S)? 0 1 cerificaion byt SM ’S. t t he E
  • 26. SME’S CLUSTER DEVELOPMENT PROGRAMMET M a SmalEnt pr Cl erDev opmentProgr mmme (SM ’SCDP)is he icro nd l er ises ust el a E impl ed forhol icdev opmentofcl er ofSM ’S. T progr mme env ges ement ist el ust s E he a isa mea forca cit buil skil dev opment t sures pa y ding, l el , echnol up gr daion oft ogy a t he ent pr improv creditdel er , maket suppor, setingup ofcommon fa it er ises, ed iv y r ing t t cil y cent s et ba on dia ic st car outin consulaion w h cl erunit a er c, sed gnost udies ried t t it ust s nd t colect es a ma gementofcl erw fa it byt cl ercolect es. heir l iv nd na ust - ide cil ies he ust l iv
  • 27. CREDIT LINKED CAPITAL SUBSIDY SCHEME T CreditLinked Ca a SubsidyScheme he pit l(CL a a fa it t t CSS) ims t cil aing echnol up-gr daion byprov 15% upfrontca a ogy a t iding pit l subsidyw 29th Sept .e.f. ember, 20 5 t ma ct ingSM ’S, on inst ut lfina 0 o nufa ur E it iona nce upt R 1 crore a a ed ofbyt forinduct ofw lest bl a improv o s. v il hem ion el a ished nd ed technol in t specified sub sect s/ ogies he or product a ed undert scheme. s pprov he
  • 28. INTELLECTUAL PROPERTY RIGHTS FOR SME’ST Scheme ha been l unched t ena e India his s a o bl nSM t at in gl ll der posit a t Es o ta oba ea ship ion nd oempow t in usingeffect el t t s of er hem iv y he oolInt l ua ProperyR s (IPR ofinnov t e proj s. elect l t ight ) aiv ectT ma feaures oft scheme a :- he in t he reAa w reness/ izaion Progr m on IPR Sensit t aPil St forSel ed Cl er Groups ofIndusties ot udies ect ust s/ rInt a iv seminas/ or er ct e r W kshopsSpeciaized Ta l r iningA a forGr ntofPaentG R r t ssist nce a t / I egistaionSetingup ofIPF cil aion Cent (IPFC) t a it t reInt a ion w h Int naiona A er ct it er t l gencies.
  • 29. QUALITY MANAGEMENT STANDARDS & QUALITY TECNOLOLGY TOOLSGov nmentofIndial unched ascheme, ‘Ena ing er a blM nufa ur Sect be Compet iv t a ct ing or it e hrough QuaitlyM na a gementSt nda (QM a Quait T a rds S) nd l y echnol ogyT s (QT )I’ in ordert improv quait a ool T o e l y ndproduct it in t SM ’Ssect , T scheme is a a iv y he E or he imed timprov t quait oft product in t SM ’Ssect ing he l y he s he E ora incul t t Quait consciousness in t sect . nd cae he l y his orT maora iv ies undert scheme a he j ct it he reOrga nizingA a w reness Ca igns forSM ’S mpa EOrga nizingCompet ion- ach (CWt it Wt - ach)Impl aion ofQuait M na ement t l y a gementSt nda nd Quait T a rdsa l y echnol T s in sel ed SM ogy ool ectM or Int naiona St M onit ing er t l udy issions
  • 30. DESIGN CLINIC SCHEME FOR SMEST ma obj iv oft scheme is t br t SM sect a design experise int a he in ect e he o ing he E or nd t o common pl t m a t prov exper a ice a sol ions on rea t design afor nd o ide t dv nd ut l ime probl resulingin cont ems, t inuous improvementa v l a ion forexist product nd aue- ddit ing s. Itaso a a v l a cost pl nned undert scheme incl creaion ofDesign l ims t aue dded s a he ude t Cl Secret r taongw h regiona cent s forint v ion on t design needs oft inics aia l it l er er ent he he SM sect . E or
  • 31. MARKETING ASSISTANCE AND TECHNOLOGY UPGRADATION SCHEME FOR SMEST obj iv oft scheme is t ident a encour ge t cl er ofSM w ha e he ect e his o ify nd a hose ust s Es hich v quait product a expor pot ia a a t t a e compet iv in t ly ion nd t ent l nd ssist hem o chiev it eness he naiona a int naiona maket T scheme a a improv t maket t l nd er t l r s. he ims t ing he r ing compet iv ofSM sect byimprov t t it eness E or ing heir echniques a t nd echnol for ogy pr mot ofexpors. 0 ion t
  • 32. EXPORT PROMOTIONExpor promot for t SM sect ha been a t ion m he E or s ccorded ahigh pr it . ior yT hel M in exporing t product t folow fa it incent es a o p SEs t heir s, he l ing cil ies/ iv reprovidedProduct ofSM a displ yed in int naiona exhibit a t expendit incur is reimbur by s E re a er t l ion nd he ure red sed t Gov nment he erT a intSM w h l t pa ging st nda t o cqua E it aest cka a rds, echniques et ta progr m on pa ging for c. r ining a cka exporer a orga in v r pat oft countyin a t w h t India Inst ut of t s re nized aious rs he r ssociaion it he n it e Pa ging ckaUndert SM M r ing Dev opmentA a (M )Scheme, a a is prov t indiv l for he E aket el ssist nce DA ssist nce ided o iduas pat t in ov sea fa s/ ricipaion er s ir exhibit o ov sea st t s. ions, er s udy ourT scheme aso offera a for he l ssist nceSect specific maketst bySM A t / tPromot Council Feder t ofIndia Expor or r udy E ssociaing Expor ion s/ aion n t Orga t nizaion
  • 33. TECHNOLOGY AND QUALITY UPGRADATION SUPPORT TO SME’ST obj iv oft scheme is t sensit t ma ct ing sect in Indiat upgr de t t he ect e his o ize he nufa ur or o a heir echnol ogies,usa ofenergyefficientt ge echnol t reduce emissions ofGreen House Ga a ion ofot ogies o sses, dopt hertechnol ma t a pert gl lst nda improv t quait a reduce costofproduct et ogies ndaed s he oba a rds, e heir l y nd ion ,t a becoming gl lycompet iv T maora iv ies pl ned undert scheme incl Ca cit ow rds obal it e. he j ct it a he ude pa yBuil ofSM Cl erforEnergyEfficiency/ ea Dev opmentInt v ions, Impl aion ofEnergy ding Es ust Cl n el er ent ement tEfficientT echnol in SM sect , setingup ofCabon credita ogies E or t r ggregaion cent s a encour ging SM t er nd a Esta o cquire productcerificaion l t t icenses from Naiona/Int naiona bodies. t l er t l
  • 34. JOB PROSPECTSeniora J Execut es -A nd unior iv dministaion, Business rtDev opment Promot Coordinaion a M r ing el , ion, t nd aketSeniora J Execut es -M na nd unior iv a gementa coordinaion ofE ent exhibit , conferences nd t v s, ionSeniora J Execut es -Int naiona M r ing forEv s, conferences , exhibit nd unior iv er t l aket ent ionPubl R aion Officer ic el tDaa se M na t ba a gementSeniorExecut es -ProductSourcing a procurement iv ndR rch A l s forIndustia, Fina SM &M r esea nayst r l nce, E aketSeniorExecut es forprepaaion ofBusiness pl ns (Promot a Br nding) iv rt a ion nd aJ Execut es -M r ing (T e /Fiel M r ing ) unior iv aket el d aketSt T , Execut e Secret r T ephone Oper t s eno- ypist iv aies, el aor
  • 35. SUBMITTED BY:-VIKRAM SINGH CHAUAHN