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Msme policy in india
The document discusses India's MSME policy. It defines MSMEs based on investment levels, with micro enterprises having investments under 25 lakh rupees. The evolution of MSME policy since 1948 aimed to promote employment, equitable income distribution, and mobilizing private resources. Key policies include reserving manufacturing for MSMEs, improving access to bank credit, and the 1999 Credit Linked Capital Subsidy Scheme to encourage technology upgrades. MSMEs are important as they account for 9% of GDP, 45% of manufacturing output, 40% of exports, and employ 42 million people across various industries. Current policy measures center around protection, improving credit access, entrepreneurship development, and infrastructure.
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Msme policy in india
- 1. MSME POLICY ININDIA Presented by Simran Kaur MBA 2nd year IGICM
- 2. Contents Definition ofMSME policy Evolution of MSME policy Importance of MSME sector Policy measures in MSME sector
- 3. Definition of MSMEPolicy MSME is the abbreviation of Micro, Small and Medium Enterprises. It is based on the investment in plant and machinery(for manufacturing enterprises) and on equipments for enterprises providing or rendering services. Micro enterprise – investment doesn’t exceed 25 lakh rupees Medium enterprise – more than 5 crores but not upto 10 crores Small enterprise – more than 25 lakh rupees but doesn’t exceed 5 crores
- 4. Evolution of MSMEPolicy 1948-1990 • expanding employment opportunities. • equitable distribution of the national income. • effective mobilization of private sector resources of capital and skills. • reservation of items for their exclusive manufacture • access to bank credit 1991-1999 • New Policy for Small, Tiny and Village Enterprises of August 1991, laid the framework for government support in the context of liberalisation
- 5. Evolution of MSMEPolicy(contd.) • Small Industries Development Bank of India (SIDBI) and a Technology Development and Modernisation Fund to accelerate finance and technical services. • Delayed Payment Act enacted to facilitate prompt payment of dues to MSEs • Industrial Infrastructure Development (IID) scheme launched to set mini industrial estates for small industries. 1999 onwards • Credit Linked Capital Subsidy Scheme launched to encourage technology upgradation. • Equity holding of 24%, prescribed for industrial undertakings, both domestic and foreign
- 6. Importance of MSMESector 9% of national GDP 45% of manufacturing output 40% of national exports Manufacturing over 6000 product groups Employs about 42 million persons in over 13 million units
- 7. Policy measures inMSME sector Protection and reservation has been extended to Indian MSEs Realizing the credit requirements of small scale units Entrepreneurship development Infrastructural development
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