INTRODUCTION MSME• Msme stands for micro, small and medium enterprises.• It plays a important role for economic development of our country.• The major advantage of the sector is its employment potential at low capital cost. The labor intensity of the MSME sector is much higher than that of the large enterprises.• it satisfies the demand of local customer.
Industry coming under msme• Food Processing(kfc product,berger,pasta)• Agricultural Inputs(Seeds, fertilizer)• Chemicals & Pharmaceuticals(medicines)• Engineering; Electricals, Electronics• Electro-medical equipment• Textiles and Garments• Meat products• Sports goods• Plastics products• Computer Software, etc.
MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT (MSMED) ACT,2006• The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, on June 16, 2006 .
Brief idea about MSME• In India, the enterprises have been classified broadly into two categories 1.Manufacturing 2. services.• Both categories have been further classified into micro, small and medium enterprises based on their investment in plant and machinery or on equipment.
CATEGORIZATION OF ACTIVITIES UNDER Manufacturing or Services under the MSMED Act 2006-Manufacturing service1. Printing 1.publishing2.Medical Equipment 2.hospitals 3.Ayurvedic Product 3. Restaurant3.Beedi/ Cigarette Manufacturing 4.hotelsand other tobacco products. 5.education4. Generation of electricity 6.training though windmill. 7.software service
MSME- INDIAN SCENARIO• 12.5 million MSMEs• Employ 30 million People• Contribute approx. 50% of Industrial Production• Contribute approx. 45% of Exports
AIM OF MSMEMSME development as a tool of state policy aims at :• Generation of Employment• Dispersal of Economy• Utilization of local skills and resources• Meet demands locally
Govt.role1. Provide credit facility2. Legislation3. Fiscal policy