MSMEs play an important role in the Indian economy, contributing approximately 8% to GDP, 40% to manufacturing output, and 45% to exports. They emerged based on Gandhian principles and were encouraged by the MSME Act of 2006. Common challenges faced by MSMEs include lack of access to financing, raw materials, skilled labor, and effective marketing strategies. The government has implemented various schemes and programs to support MSME growth and address these challenges.
• The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place.
• The District Industries Centre is the institution at the District level, which provides all the services and support facilities to the entrepreneur for setting up Micro, Small and Medium Enterprises. This included identification of suitable schemes, preparation of feasibility reports, arrangements for credit facilities, machinery and equipments, provision of raw materials and development of industrial clusters etc.
• Established in 1940
• Vision is to be primary driving force of commercially sustainable industrial development .
• Industrial development Corporations are companies or agencies in India which were established at various times under the policy of Government of India for the promotion of small - scale industries.
• A Central Industrial Finance corporation was set up under the industrial Finance corporations Act, 1948 in order to provide medium and long term credit to industrial undertakings which fall outside normal activities of commercial banks.
• The State governments expressed their desire that similar corporations be set up in states to supplement the work of the Industrial financial corporation. State governments also expressed that the State corporations be established under a special statue in order to make it possible to incorporate in the constitutions necessary provisions in regard to majority control by the government, guaranteed by the State government in regard to the payment principal. In order to implement the views Expressed by the State governments the State Financial Corporation bill was introduced in the Parliament.
• Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
• It was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
• The purpose is to provide refinance facilities and short term lending to industries. Its headquarters is in Lucknow.
• Former Deputy Managing Director is Shri N.K. Maini. Dr. Kshatrapati Shivaji is the new Chairman and Managing Director of the organisation.
• The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place.
• The District Industries Centre is the institution at the District level, which provides all the services and support facilities to the entrepreneur for setting up Micro, Small and Medium Enterprises. This included identification of suitable schemes, preparation of feasibility reports, arrangements for credit facilities, machinery and equipments, provision of raw materials and development of industrial clusters etc.
• Established in 1940
• Vision is to be primary driving force of commercially sustainable industrial development .
• Industrial development Corporations are companies or agencies in India which were established at various times under the policy of Government of India for the promotion of small - scale industries.
• A Central Industrial Finance corporation was set up under the industrial Finance corporations Act, 1948 in order to provide medium and long term credit to industrial undertakings which fall outside normal activities of commercial banks.
• The State governments expressed their desire that similar corporations be set up in states to supplement the work of the Industrial financial corporation. State governments also expressed that the State corporations be established under a special statue in order to make it possible to incorporate in the constitutions necessary provisions in regard to majority control by the government, guaranteed by the State government in regard to the payment principal. In order to implement the views Expressed by the State governments the State Financial Corporation bill was introduced in the Parliament.
• Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
• It was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
• The purpose is to provide refinance facilities and short term lending to industries. Its headquarters is in Lucknow.
• Former Deputy Managing Director is Shri N.K. Maini. Dr. Kshatrapati Shivaji is the new Chairman and Managing Director of the organisation.
• The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place.
• The District Industries Centre is the institution at the District level, which provides all the services and support facilities to the entrepreneur for setting up Micro, Small and Medium Enterprises. This included identification of suitable schemes, preparation of feasibility reports, arrangements for credit facilities, machinery and equipments, provision of raw materials and development of industrial clusters etc.
• Established in 1940
• Vision is to be primary driving force of commercially sustainable industrial development .
• Industrial development Corporations are companies or agencies in India which were established at various times under the policy of Government of India for the promotion of small - scale industries.
• A Central Industrial Finance corporation was set up under the industrial Finance corporations Act, 1948 in order to provide medium and long term credit to industrial undertakings which fall outside normal activities of commercial banks.
• The State governments expressed their desire that similar corporations be set up in states to supplement the work of the Industrial financial corporation. State governments also expressed that the State corporations be established under a special statue in order to make it possible to incorporate in the constitutions necessary provisions in regard to majority control by the government, guaranteed by the State government in regard to the payment principal. In order to implement the views Expressed by the State governments the State Financial Corporation bill was introduced in the Parliament.
• Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
• It was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
• The purpose is to provide refinance facilities and short term lending to industries. Its headquarters is in Lucknow.
• Former Deputy Managing Director is Shri N.K. Maini. Dr. Kshatrapati Shivaji is the new Chairman and Managing Director of the organisation.
Entrepreneurship development - Micro Small and Medium EnterprisesSOMASUNDARAM T
Meaning; Definition; Types; product range; capital investment; ownership patterns; Importance and role played in the development of the Indian economy; Problems and Remedies; Sickness in MSME’s; Meaning and definition of a sick industry; Causes of industrial sickness; Preventive and remedial measures for sick industries.
Micro, Small and Medium Enterprises Development Act, 2006: A Law with Large ...Amitabh Srivastava
MSMED Act , 2006 has been enacted in order to facilitate promotion and development of MSMEs and enhancing competitiveness in the market. Special provisions has been made in order to ensure timely payment to these enterprises under the Act, failure of which may result to serious consequences.The presentation briefy discusses the provisions and implications of the Act.
3. This module discusses the various governmental Institutional Support provided to nurture entrepreneurship in India especially Small scale and cottage industry in villages. , Type of Support provided by governmental agencies, Directorate of Industries, Industrial Development Corporation, State Financial Corporations, State Small industries Development Corporation(SSIDC), Khadi and Village Industries Commission (KVIC),National Small Industries Corporation (NSIC) and Small Industries Development Bank Of India(SIDBI).
The 'District Industries Centre' (DICs)
Bijapur The Joint Director, District Industries Centre Industrial Estate, Station Back Road, Shikhara Khana, Bijapur - 586 101.
08352 250976 257125 250607
jd-bijapur@karnatakaindustry.gov.in
The Indian MSME sector is the backbone of the national economic structure and has unremittingly acted as the bulwark for the Indian economy, providing it resilience to ward off global economic shocks and adversities. With around 48.8 million units throughout the geographical expanse of the country, MSMEs contribute around 7% of the manufacturing GDP and 31% of the GDP from service activities as well as 37% of India s manufacturing output and 40% of the overall exports.
• The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place.
• The District Industries Centre is the institution at the District level, which provides all the services and support facilities to the entrepreneur for setting up Micro, Small and Medium Enterprises. This included identification of suitable schemes, preparation of feasibility reports, arrangements for credit facilities, machinery and equipments, provision of raw materials and development of industrial clusters etc.
• Established in 1940
• Vision is to be primary driving force of commercially sustainable industrial development .
• Industrial development Corporations are companies or agencies in India which were established at various times under the policy of Government of India for the promotion of small - scale industries.
• A Central Industrial Finance corporation was set up under the industrial Finance corporations Act, 1948 in order to provide medium and long term credit to industrial undertakings which fall outside normal activities of commercial banks.
• The State governments expressed their desire that similar corporations be set up in states to supplement the work of the Industrial financial corporation. State governments also expressed that the State corporations be established under a special statue in order to make it possible to incorporate in the constitutions necessary provisions in regard to majority control by the government, guaranteed by the State government in regard to the payment principal. In order to implement the views Expressed by the State governments the State Financial Corporation bill was introduced in the Parliament.
• Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
• It was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
• The purpose is to provide refinance facilities and short term lending to industries. Its headquarters is in Lucknow.
• Former Deputy Managing Director is Shri N.K. Maini. Dr. Kshatrapati Shivaji is the new Chairman and Managing Director of the organisation.
Entrepreneurship development - Micro Small and Medium EnterprisesSOMASUNDARAM T
Meaning; Definition; Types; product range; capital investment; ownership patterns; Importance and role played in the development of the Indian economy; Problems and Remedies; Sickness in MSME’s; Meaning and definition of a sick industry; Causes of industrial sickness; Preventive and remedial measures for sick industries.
Micro, Small and Medium Enterprises Development Act, 2006: A Law with Large ...Amitabh Srivastava
MSMED Act , 2006 has been enacted in order to facilitate promotion and development of MSMEs and enhancing competitiveness in the market. Special provisions has been made in order to ensure timely payment to these enterprises under the Act, failure of which may result to serious consequences.The presentation briefy discusses the provisions and implications of the Act.
3. This module discusses the various governmental Institutional Support provided to nurture entrepreneurship in India especially Small scale and cottage industry in villages. , Type of Support provided by governmental agencies, Directorate of Industries, Industrial Development Corporation, State Financial Corporations, State Small industries Development Corporation(SSIDC), Khadi and Village Industries Commission (KVIC),National Small Industries Corporation (NSIC) and Small Industries Development Bank Of India(SIDBI).
The 'District Industries Centre' (DICs)
Bijapur The Joint Director, District Industries Centre Industrial Estate, Station Back Road, Shikhara Khana, Bijapur - 586 101.
08352 250976 257125 250607
jd-bijapur@karnatakaindustry.gov.in
The Indian MSME sector is the backbone of the national economic structure and has unremittingly acted as the bulwark for the Indian economy, providing it resilience to ward off global economic shocks and adversities. With around 48.8 million units throughout the geographical expanse of the country, MSMEs contribute around 7% of the manufacturing GDP and 31% of the GDP from service activities as well as 37% of India s manufacturing output and 40% of the overall exports.
A study on problems and prospects of smesRam Kumar
The presentation's sole motive is to highlight the importance of small and medium scale enterprises in India.It provides the problems faced by them,their future prospects,and their role and importance in Indian economy.
Introduction to MSMEs in India, Key Government Policies and Support for MSMEs, Ease of Doing Business : The India Story, Financing Sources for MSMEs, MSME Issues and Challenges and Role of Information Technology and Innovation
An Analysis of Micro, Small and Medium Enterprises in IndiaABDUL MOIZZ
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.
Empowering MSMEs through financing and linkagesMisbah Hussain
This reports aims to help the MSME sector, especially in
east and north-eastern parts of the country, better
understand the challenges and devise strategies accordinglyto deal with the odds.
The Indian economy has emerged as a beacon of hope in the current scenario characterized by a sluggish global economic performance. Owing to improved monetary and fiscal policies, the Indian economy has registered the highest growth amongst the G20 countries. With recent reforms by the Indian Government, especially in enhancing ease of doing business, opening the economy to foreign investors & international trade and increasing transparency in the financial system, India is well poised to become a key player in the global economy.
MSMEs are the very fuel that drive the growth of the Indian economy. Their small size, low capital requirement, use of indigenous technology & local resources and suitability for rural areas, makes it a strong case for the promotion of MSMEs. The need of the hour is to heed the crucial hurdles that are thwarting the growth of these enterprises and prepare them, through timely policy interventions and structural changes, towards enhancing their share in the global market.
This issue of the Policy Watch focuses especially on MSMEs, recent policy developments pertaining to the sector, opportunities and growth prospects for SMEs and significant policy recommendations in various areas that will assist in putting Indian MSMEs on a high growth trajectory.
MSME Sector - Growth, Challenges & Opportunities Resurgent India
The MSME sector contributes in a significant way to the growth of the Indian economy across the realms of production system, employment generation, national output, exports etc. The MSME Sector comprises of approximately 48 million units that produce more than 6,000 products ranging from traditional to high-tech items. The sector is driving sustainable growth in Indian economy by providing employment to around 111 million people, accounts for 45% of the manufacturing output, 40% of the country's exports and contributes 8-9% to the country's GDP.
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Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.
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In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
How to Run Landing Page Tests On and Off Paid Social PlatformsVWO
Join us for an exclusive webinar featuring Mariate, Alexandra and Nima where we will unveil a comprehensive blueprint for crafting a successful paid media strategy focused on landing page testing.With escalating costs in paid advertising, understanding how to maximize each visitor’s experience is crucial for retention and conversion.
This session will dive into the methodologies for executing and analyzing landing page tests within paid social channels, offering a blend of theoretical knowledge and practical insights.
The Pearmill team will guide you through the nuances of setting up and managing landing page experiments on paid social platforms. You will learn about the critical rules to follow, the structure of effective tests, optimal conversion duration and budget allocation.
The session will also cover data analysis techniques and criteria for graduating landing pages.
In the second part of the webinar, Pearmill will explore the use of A/B testing platforms. Discover common pitfalls to avoid in A/B testing and gain insights into analyzing A/B tests results effectively.
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Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
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2. Introduction
o Stands for Micro Small and Medium Enterprises.
o Plays an important role in economic stability.
o The enterprise is regarded as BACKBONE of
industrial development.
o Contributing mainly 8% in GDP, 40% in
Manufacturing output & 45% in Exports.
o They have emerged as dynamic and vibrant sector of
economy.
3. Emergence of MSME
Based on Gandhian Model.
Encouraged by MSME Act 2006.
During pre-liberalization period 1991, India accorded
high priority to small and medium enterprises.
The scenario for small scale industry changed with
industrial policy establishment.
Post liberalization era reflected growth of small scale
industries and it was almost 3 times of total
industrial sector .
6. MSME in India
In Indian context, MSME is defined as
It is basically based on investment in plant,
machinery and equipments for providing services.
Meaning of micro small and Medium Undertakings
changed over years with the changing conditions and
squeezing issues of the Indian economy. Different
organizations, government offices, people had
characterized little modern units in various ways.
7. Criteria’s
For Manufacturing-
Investment not more than 25 Lakhs for micro.
Not more than 5 crores for medium.
More than 25 lakhs but doesnot exceeds 5 crores.
For Service-
Less than 10 lakhs for micro.
From 10 lakh to 2 crores for small.
Between 2 to 5 crores for medium.
9. Contribution & Performance OF MSME’s
45% Industrial Production
10% Exports
31 Million Employment
13 Million MSME’s producing more than 800
products
10. Role & Functions of MSME
Advising the Government in policy formulation.
Providing techno-economic and managerial
consultancies
Developing Human Resources
Making available economic information services
Maintaining a close liaison with the organizations
Evolving and coordinating Policies and Programs
11. MSME in India
Contribute nearly 45 percent of the manufacturing
output and 40 percent of the exports
Contribute app. 8 percent of country’s GDP
MSME sector provide the largest share of
employment
Economic independence
Growth of small sector plays an important role in
maintaining the overall social & cultural structure
12. Expectations
Make in India is a challenge as well as opportunity
for MSME sector (challenge from foreign players and
opportunity as big players will outsource some of the
small items/processes to other entities). The
contribution of MSME segment to the GDP in some
of the economies is in the 25-60 per cent range. With
the increase in MSME contribution to the GDP, there
is a potential to increase its contribution to
employment to over 50 per cent over the next
decade.
13. Share of
MSME in GDP Employment Generation
Country Non MSME
(%)
MSME
(%)
Non MSME
(%)
MSME
(%)
Argentina 75% 25% 85% 15%
Brazil 78% 22% 33% 67%
Canada 73% 27% 10% 90%
France 42% 58% 37% 63%
Germany 46% 54% 38% 62%
India 92% 8% 79% 21%
Italy 32% 68% 20% 80%
Russia 65% 35% 77% 23%
Singapore 50% 50% 30% 70%
South Africa 43% 57% 26% 74%
Taiwan 15% 85% 22% 78%
UK 50% 50% 48% 52%
US 52% 48% 47% 53%
14. Product wise MSME share in Exports
Commodity %ages in Exports
Pearls, gems, jeweler, metals etc. 35%
Electrical and electronics equipment 8%
Articles of apparels 11%
Pharmaceuticals 6%
Others 40%
15. Steps taken for revival
Credit facility- Reserve Bank of India (RBI) has issued revised master
direction for lending to MSME sector on July 21, 2016 and loans to
MSME sector are classified as priority sector lending.
Technology- Although MSMEs are labor intensive but use of advance
technology will increase the productivity. Government has announced
setting up new Technology Centre/Tool Rooms for skill training and
technical support to the MSMEs.
Market- Identifying the buyer to sell the products is one of the biggest
challenge because a MSME doesn’t have a credible brand name and at
times it has to face bigger rivals in their product segment who have a
natural benefit of their scale of operations.
16. Continued..
MSME sector has to reach entrepreneurs & educate
them about the opportunities
New bankruptcy law allow entrepreneurs to get a
fresh start and thereby facilitate restart
Import of Chinese goods has become more
economical
RBI extending loans upto 25 lakhs
17. MSEMED Act 2006
MSMED Act was established to provide for
facilitating *the promotion and development* and
*enhancing competitiveness* of micro, small &
medium enterprises.
Became operational on 2nd October 2016
Prior to 2006 Act - all about small & village
industries
After 2006 Act - Micro and Small Industries.
18. Salient Features
Industries replaced by enterprises.
Constitution of MSME board.
Simplification of registration procedure.
Progressive credit support.
Penalty for delayed payments.
19. Objectives
Strengthening competition by establishing an
appropriate legal and regulatory framework and
removing barriers to competition and trade.
Facilitating investment and trade by strengthening
the framework for marketing assistance or
infrastructure facilities and cluster development of
enterprises.
20. Challenges to MSME
Absence of adequate and timely banking finance.
Limited capital and knowledge.
Non-availability of suitable technology.
Low production capacity.
Ineffective marketing strategy.
Non availability of skilled labor at affordable cost
21. MSME - Problems faced by finance
Root cause for all the other problems faced by the
MSME sector.
Exhibited rate of interest.
Weak credit worthiness of micro and small
enterprises in the country.
Difficult to take financial assistance from the
commercial banks and financial institutions.
22. MSME - Problems faced by Raw Material
An absolute scarcity.
Poor quality of raw materials.
A high cost.
23. MSME - Problems faced by Marketing
One of the main problems faced by the micro and
small enterprises is in the field of marketing. These
units often do not possess any marketing
organization. In consequence, their products
compare unfavorably with the quality of the products
of the large-scale industries. Therefore, they suffer
from competitive disadvantages vis à vis large scale
units.
24. MSME - Problems faced by SME
SME are often confronted with problems that is
uncommon to the larger companies and multi-
national corporations.
Very difficult for SMEs to attract good IT personnel.
Lack of Formal Procedure and Discipline.
Uneven IT Awareness and Management Skill
Lack of Experience of Using Consultants
Lack of Human Resources
25. Measures taken by the government
National Manufacturing Competitiveness Programme
(NMCP) Schemes Under XI Plan
Micro & Small Enterprises Cluster Development
Programme (MSE-CDP)
Credit Linked Capital Subsidy Scheme for Technology
Upgradation
Credit Guarantee Scheme
ISO 9000/ISO 14001 Certification Reimbursement
Scheme
Scheme of Micro Finance Programme
Scheme of National Award
26. Continued…
Guidelines of Scheme for Assistance to Training
Institutions ( English/ Hindi)
Scheme of Fund for Regeneration of Traditional
Industries (SFURTI)
Rajiv Gandhi Udyami Mitra Yojana (RGUMY)
Implemented through NSIC
Marketing Assistance Scheme
Performance and Credit Rating Scheme
27. Conclusion
With this fast growing economy and vast opportunities
MSME are about to raise bar and challenges
international competition. We hope to see them in a
far better position in terms of growth as well as
manufacturing excellence. We could expect more
schemes from government to make MSME excellent.