The presentation is about a brief study of MSME sector in India regarding GDP, employment and inclusive growth. The study also covers various challenges facing by this sector and also the governmental intervention for solutions of these challenges.

1. ABDUL MOIZZ
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16-ECM-17

3.  Highly Vibrant and Dynamic sector of
Indian economy
 Promote equitable economic development
 Panacea for several economic woes
 Complementary to large industries
The SSI or MSMEs Sector is
 The engine of economic growth

5. Before MSMED Act, 2006 the SSI sector covers a
wide spectrum of industries-
 Small-scale industrial undertakings
 Ancillary industrial undertakings (ANC)
 Export-oriented units (EOUs)
 Tiny Enterprises (TINY)
 Small-scale service enterprises (SSSEs)
 Small-scale service business enterprise (SSBEs)
 Artisans, Village and Cottage Industries
 Women Enterprises

6.  The Small Scale industrial sector contributes significantly
to India’s GDP and export earning in addition to providing
employment to millions of people across the country.
 In 1977 units having investment of less than lakh were
defined as small scale industries while for ancillary units
the investment limit was 15 lakhs and for tiny enterprises
1 lakh
 In 1991 the investment limit for SSI rose to 60 lakh, for
ancillary units up to 75 lakhs for tiny enterprises
5 lakhs
 In 2000, it rose to one crore for SSI ancillary units 1
crore for tiny enterprises 25 lakh
Source: Wikipedia/SSI India

8.  Introduces the concept of ‘enterprise’ as opposed to the
earlier concept of industry.
 Classifies MSMEs into :
Enterprises engage in the manufacture or
production of goods pertaining to any industry
specified into first schedule of industries in the
Development and Regulation Act, 1951
 Enterprises engaged in providing or rendering services

9.  Based on their investment in plant and machinery (for manufacturing
enterprise) and on equipment for enterprises providing or rendering
services.
Classification Manufacturing
Enterprises
Service Enterprises
Micro Rs. 2.5 million/
Rs. 25 lakh
Rs. 1 million/
Rs. 10 lakh
Small Rs. 50 million/
Rs. 5 crore
Rs. 20 million/
Rs. 2 crore
Medium Rs. 100 million/
Rs. 10 crore
Rs. 50 million/
Rs. 5 crore

10. 80 million
employment
36 million
units
6000
products
45%
Manufacturing
output
40%
Total export
8%
GDP
MSMEs
Source: Ministry of Micro, Small and Medium Enterprises

11. MICRO
70%
SMALL
25%
MEDIUM
5%
Source - Final Report Fourth All India Census of Micro, Small & Medium Enterprises
Micro 14.05 lakh
Small 0.76 lakh
Medium 0.03 lakh

12. Wearing Apparel
12%
Food Products and
Beverages
10%
Fabricated Metal
Products
3%
Repair &
Maintenance of
Personal &
Household goods,
Retail Trade
55%
Textile
3%
Repair &
Maintenance of Motar
Vehicles, Retail Sail
of Automative Fuels
5%
Education
2%
Other Non Metallic
Mineral Products
1%
Furniture
5%
Wood & Wood
Products
2%
Machinery and
Equipment
2%
Source - Final Report Fourth All India Census of Micro, Small & Medium Enterprises

14. MSMEs Generates Large-Scale Employment
 Generates highest employment per Capita
Investment
 Checks rural migration by providing sustainable
sources of employment
 Contributes about 70 percent of the net new jobs
across the globe
 Labour intensity in the MSMEs sector is almost
4 times higher than the large enterprises

15. Source: 1. Fourth All India Census of MSME 2006-07,
2. National Account Statistics (2014), CSO, MoSPI and
3. Annual Survey of Industries, CSO, MoSPI.

17.  Sustains economic growth and increase exports
 Non traditional products account for more than
95 per cent of the SSI exports
 Traditional MSEs have potential to expand the
quantum of exports
 Promote eco friendly growth, especially in
difficult terrains and ecologically sensitive areas
 Ideal for meeting small orders quantities in
industries such as readymade garments,
home furnishing etc

18. Source: 1. Fourth All India Census of MSME 2006-07,
2. National Account Statistics (2014), CSO, MoSPI and
3. Annual Survey of Industries, CSO, MoSPI.

19. 11.77
10.45
11.83
18.45
14.3
12.44
17.18
18.74
0
2
4
6
8
10
12
14
16
18
20
2007-08 to
2008-09
2008-09 to
2009-10
2009-10 to
2010-11
2010-11 to
2011-12
2011-12 to
2012-13
2012-13 to
2013-14
2013-14 to
2014-15
2014-15 to
2015-16
Growth Rate
Source - Final Report Fourth All India Census of Micro, Small & Medium Enterprises

20.  Breaks the cycle of poverty and deprivation
 Focuses on people’s skill and agency
 It is the only source of livelihood for many families
 It is dominated by different social group
 Touches the lives of the most marginalized section
of the society such as women, Muslims, SCs and
STs unskilled labour

21. MUSLIM
9%
SIKH
3%
CHRISTIAN
4%
BUDDHISM
0.07%
JAIN
1%
OTHERS
2%
HINDU
81%
Source - Final Report Fourth All India Census of Micro, Small & Medium Enterprises

22. Other
Backward
Classes
SC
ST
Others
Source - Final Report Fourth All India Census of Micro, Small & Medium Enterprises

23. MEN
86%
WOMEN
14% URBAN
45%
RURAL
55%
Source - Final Report Fourth All India Census of Micro, Small & Medium Enterprises

25. MSMEs faces tough challenges in the period
of Globalization and Liberalization
 Rock-Bottom Prices
 Infrastructural Bottlenecks
 Financial Bottlenecks
 Marketing
 Technological
 Demonetization
 Goods and Service Tax (GST)
 Other Problems

27.  Khadi & Village Industries Commission (KVIC)
 Mahatma Gandhi Institute for Rural
Industrialization (MGIRI)
 Coir Board
 National Small Industries Corporation (NSIC)
Ltd
 National Institute for Micro, Small and Medium
Enterprises

29.  Performance & Credit Rating Scheme
 Marketing Assistance Scheme
 International Cooperation (IC) Scheme
 Prime Minister’ s Employment Generation
Programme (PMEGP)
 Scheme of fund for Regeneration of
Traditional Industries (SFURTI)
 Credit Guarantee Scheme (CGTMSE)
 Infrastructure Development Program
 Technology Upgradation and Quality Certification

31.  ASPIRE: A Scheme for Promoting Innovation and
Rural Entrepreneurship
 Change of Definition of MSMEs
 Udyog Aadhaar
 Digital Initiatives
 Technology Centre System Programes
 Quality Management System (ISO)

33.  Lack of reliable and stable economic infrastructure, reduce growth of credit
inflow and technological obsolescence, together would have let to inferior
quality and low productivity are the major obstacles for small industries in
India. At the same time government policies changes have thrown open new
opportunities and market for the Indian Small industries.
 Technological up gradation and in-house technological innovation and
promotion of inter-firm linkages needs to be encouraged consistently.
 Financial infrastructure needs to be broadened and adequate inflow of
credit be insured a technological vibrant, internationally competitive small
industry should be encouraged to make a sustainable contribution to national
income, employment and exports.