The document discusses regulatory barriers faced by micro, small, and medium enterprises (MSMEs) in India. It analyzes norms related to business entry, continuance, and exit. Key findings are that MSMEs struggle with greater procedural requirements, lack of access to financing, complex labor regulations, and a burdensome tax structure compared to large enterprises. The paper recommends simplifying regulatory processes, improving access to credit, rationalizing labor laws, clarifying tax policies, and establishing a legal framework for business closure to help MSMEs overcome barriers and realize their growth potential.
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.
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.
Micro Small and Medium Enterprise Funding - Opportunities and ChallengesResurgent India
What are MSMEs, Why are they Important, What is their role in the Economy and What are the Opportunities and Challenges related to Funding in the Sector? This Research Report from Resurgent India highlights the Opportunities and Challenges along with Suggestions for MSME Funding.
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.
Pakistan has emerged as the second rapidly growing economy in Asia after China. Even though the large scale manufacturing registered 15.4% growth but small and medium enterprises (SMEs) is the core issue in the country’s progress and especially for the prosperity of masses that are surviving with low scale income due to which Pakistan ranks 135th out of 174 countries oh Human Development Index. The assessment of the role of SMEs in Pakistan is of vital importance.SME produces the income stream for masses located in the countryside and the capitalists associated with this activity that is generally medium or small as the name suggests. SMEs will be the main source of poverty reduction in Pakistan that will create the value and innovation for the country in the days to come. The thing that really needs serious attention is to remove the unnecessary bureaucratic procedures.
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.
MSMEs in India, which has to its credit of providing the highest number of employment opportunities, face a severe problem in securing finance from the banks.
Micro, Small and Medium Enterprises, Key Government Schemes and Initiatives to support MSMEs, Current Financing Landscape for MSMEs, Issues and Challenges for MSMEs
Micro Small and Medium Enterprise Funding - Opportunities and ChallengesResurgent India
What are MSMEs, Why are they Important, What is their role in the Economy and What are the Opportunities and Challenges related to Funding in the Sector? This Research Report from Resurgent India highlights the Opportunities and Challenges along with Suggestions for MSME Funding.
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.
Pakistan has emerged as the second rapidly growing economy in Asia after China. Even though the large scale manufacturing registered 15.4% growth but small and medium enterprises (SMEs) is the core issue in the country’s progress and especially for the prosperity of masses that are surviving with low scale income due to which Pakistan ranks 135th out of 174 countries oh Human Development Index. The assessment of the role of SMEs in Pakistan is of vital importance.SME produces the income stream for masses located in the countryside and the capitalists associated with this activity that is generally medium or small as the name suggests. SMEs will be the main source of poverty reduction in Pakistan that will create the value and innovation for the country in the days to come. The thing that really needs serious attention is to remove the unnecessary bureaucratic procedures.
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.
MSMEs in India, which has to its credit of providing the highest number of employment opportunities, face a severe problem in securing finance from the banks.
Micro, Small and Medium Enterprises, Key Government Schemes and Initiatives to support MSMEs, Current Financing Landscape for MSMEs, Issues and Challenges for MSMEs
An application for grant of an Authorisation for import of items mentioned as ‘Restricted’ in ITC (HS) may be made to RA, with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein.
Original application along with Treasury Receipt (TR) / Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA.
Industrial Policy, Fiscal Policy and Licensing PolicyPRASOON VERMA
The presentation on Industrial Policy of India, Fiscal Policy of India and Licensing Policy of India and can be used to learn and present as economics assignment
new industrial policy 1991 is about the changes made in the policy in 1991. this policy is devided into two parts 1 is announced on 24 july 1991 which is concernd with the large scale industres including the middle scale and the second part is announced on 6 august 1991 and concerned with small scale sector............
E15 Second Expert Group Meeting
Reinvigorating Manufacturing: New Industrial Policy and the Trade System
Isabelle Ramdoo
Deputy Head of Programme
Trade and Economic Transformation
Geneva, 4-5 December 2014
This presentation presents the main findings from the 2020 OECD Investment Policy Review of Myanmar. This publication will be launched at a virtual event in the presence of Myanmar's Union Minister for Investment and Foreign Economic Relations. The launch was followed by a high-level panel discussion on “Attracting quality investment and building resilience through responsible business conduct and international labour standards". http://www.oecd.org/investment/oecd-investment-policy-reviews-myanmar-2020-d7984f44-en.htm
The November issue of #PolicyWatch focuses on the overall state of #MSME development in the country, opportunities for MSMEs in some critical sectors, some of the latest MSME initiatives by the Government demonstrating its commitment towards the melioration of business environment for MSMEs and significant policy recommendations in various areas that will assist in putting Indian MSMEs on a high growth trajectory.
The predictability of financial, accounting-based, and industrial factors on ...Marc Oliveras Villanueva
VII Congrés ACCID - Presentació de la ponència: The predictability of financial, accounting-based, and industrial factors on the success of newly incorporated Spanish firms
Impact of COVID-19 on Indian MSME Sector: 16th September 2020Sam Ghosh
The Micro, Small, and Medium-sized businesses or the MSME sector contribute around ⅓ of the Indian GVA and half of the total exports.
Despite the great significance to the Indian economy, the sector deals with a lot of issues including lack of credit availability, low technology penetration, and cash-flow issues often created by their lower negotiating power dealing with the formal sector businesses.
The pandemic not only restricted revenue sources for many of the MSMEs but also created issues with credit availability, labour availability, transportation, and cash-flow.
The government of India has taken various measures to increase credit availability to the sector - from changing the definitions of MSMEs to credit guarantee schemes.
Although, the availability of credit may not be the silver bullet for the sector as the low credit uptake may be the result of low demand for credit.
Liberalization, Privatization, Globalization (Six Thinking Hat Technique) Syril Thomas
Six Thinking Hats is a system which describes a tool for group discussion and individual thinking involving six colored hats. "Six Thinking Hats" and the associated idea parallel thinking provide a means for groups to plan thinking processes in a detailed and cohesive way, and in doing so to think together more effectively.
In the further slides me and my team members will be explaining L.P.G (i.e. Liberalization, Privatization and Globalization) using the Six Thinking Hat Technique. The team would be more focusing on India and brushing up some parts of the world in our presentation.
Deloitte Survey Results: Understanding the Effect of the Union Budget 2021 on...aakash malhotra
Deloitte conducted a survey to analyze and understand the expectations from the Union Budget 2021 and industry leaders’ outlook towards it. The survey was conducted online for senior professionals across various industries and categories of organizations. A total of 180 responses from 9 industries were recorded for a survey consisting of 10-12 questions. 70% of industry leaders are optimistic about the economic growth of India in 2021-22. Read the survey results to learn more: https://www2.deloitte.com/in/en/pages/tax/topics/UnionBudget2021-22highlights.html
Street vendors’ rights to carry on their trade in public spaces, has been the subject matter of debate and discussion in India for a very long time. In fact it has taken numerous judgments of the Supreme Court and High Court to recognize their rights and shape up a statutory regime. This scenario raises an important question, as to what is the kind of property rights enjoyed by these street vendors. A study was undertaken to analyse this aspect and answer some key questions pertaining to the gradual changes that occurred in the overall concept of property rights in India.
This report analyses the current regulatory framework of higher education in India and highlights areas that require important policy reforms in order to encourage greater private participation. This participation would eventually lead to a more competitive environment in the higher education sector and foster growth, which is needed to achieve the target of 10% increase in Gross Enrolment Ratio (GER) set by the 12th Five Year Plan (FYP).
It is often believed that ideas of economic freedom and reforms are “not Indian” and have been imported from the West under circumstances outside our control (such as the balance of payments crisis necessitating the economic reforms of 1991 at IMF's behest). However, research into modern Indian history showcases the rich indigenous liberal tradition that stood against ideas of a planned economy and society.
Market-based Solutions to Public Policy - Presentation by Tom G Palmer at CCS...Centre for Civil Society
Centre for Civil Society hosted Tom G Palmer for a 'Chintan' on 22 July 2014 to discuss market-based solutions to public policy.
Tom Palmer is Vice President for International Programs at the Atlas Economic Research Foundation, and General Director of the Atlas Global Initiative for Free Trade, Peace, and Prosperity. He previously served as Vice President for International Programs at the Cato Institute and Director of the Centre for Promotion of Human Rights. He is a Senior Fellow at the Cato Institute and Director of Cato University, the Institute’s educational arm. He is the author of Realizing Freedom: Libertarian Theory, History, and Practice. He has also edited a number of publications, including The Morality of Capitalism and After the Welfare State. He received his BA from St. Johns College, MD, his MA in philosophy from The Catholic University of America, and his doctorate from Oxford University.
What You're Going to Learn
- How These 4 Leaks Force You To Work Longer And Harder in order to grow your income… improve just one of these and the impact could be life changing.
- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
#2 PROSPECTS Don’t Show
#3 PROSPECTS Don’t Buy
#4 CLIENTS Don’t Stay
- How to identify which leak to fix first so you get the biggest bang for your income.
- Get actionable strategies you can use right away to improve your bookings, sales and retention.
Salma Karina Hayat is Conscious Digital Transformation Leader at Kudos | Empowering SMEs via CRM & Digital Automation | Award-Winning Entrepreneur & Philanthropist | Education & Homelessness Advocate
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
Textile Chemical Brochure - Tradeasia (1).pdfjeffmilton96
Explore Tradeasia’s brochure for eco-friendly textile chemicals. Enhance your textile production with high-quality, sustainable solutions for superior fabric quality.
When listening about building new Ventures, Marketplaces ideas are something very frequent. On this session we will discuss reasons why you should stay away from it :P , by sharing real stories and misconceptions around them. If you still insist to go for it however, you will at least get an idea of the important and critical strategies to optimize for success like Product, Business Development & Marketing, Operations :)
Reflect Festival Limassol May 2024.
Michael Economou is an Entrepreneur, with Business & Technology foundations and a passion for Innovation. He is working with his team to launch a new venture – Exyde, an AI powered booking platform for Activities & Experiences, aspiring to revolutionize the way we travel and experience the world. Michael has extensive entrepreneurial experience as the co-founder of Ideas2life, AtYourService as well as Foody, an online delivery platform and one of the most prominent ventures in Cyprus’ digital landscape, acquired by Delivery Hero group in 2019. This journey & experience marks a vast expertise in building and scaling marketplaces, enhancing everyday life through technology and making meaningful impact on local communities, which is what Michael and his team are pursuing doing once more with Exyde www.goExyde.com
How to Build a Diversified Investment Portfolio.pdfTrims Creators
Building a diversified investment portfolio is a fundamental strategy to manage risk and optimize returns. For both novice and experienced investors, diversification offers a pathway to a more stable and resilient financial future. Here’s an in-depth guide on how to create and maintain a well-diversified investment portfolio.
Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
2. ABOUT THE STUDY
Aims and Objectives
o Post- New Industrial Policy (1991) scenario: the
missing boom in the MSME sector- WHY?
o Comparative Evaluation: Business and Regulatory
Environment
Methodology
o Secondary Data Analysis
3. ABOUT THE STUDY
Research Question
o What have been the causes behind the inability
of MSMEs to realise their growth potential?
Hypothesis
o Given business environment; disparate growth…
Regulatory norms
serve as barriers
Business environment:
non-conducive
4. LAYOUT OF THE PAPER/ PRESENTATION
o Introduction
o MSMEs v. Large Scale Industries
o Regulatory Norms
o International Comparison: EoDB Index
o Policy Recommendations
5. DEFINITION
• Basis: investment ceiling.
• Shift: SSIs MSMES: positive shift in policy
perspective and focus. Objective of the MSMED
Act, 2006?
Industry Enterprises engaged in the
manufacture of production
of goods: investment in
plant and machinery
Enterprises engaged in
providing or rendering of
services: investment in
equipment.
Micro Not exceeding Rs. 25 lakh. Not exceeding Rs.10 lakh
Small Between Rs. 25 Lakh and Rs.
5 crore
Between Rs.10 lakh and Rs.2
crore.
Medium Between Rs. 5 crore and Rs.
10 crore.
Between Rs. 2 crore and Rs. 5
crore.
6. CHALLENGES
Significance of study?
• Poor infrastructure
• Finance: lack of adequate and
timely access
• Marketing
• Regulatory norms: 142nd on the
EoDB
• Tax structure: number of
payments, procedure
• Lack of information flow
• Innovation/ R&D: missing
• Labour: Availability of skilled
and productive force
• Corruption
• Lumping MSMEs together:
POLICY PERSPECTIVE
CHALLENGE.
7. LARGE v. SMALL ENTERPRISES: POST 1991
What does liberalisation do?
o Access to capital/ technology + freedom to invest in
domestic industries = increased competition, creative
destruction/ innovation.
o Factors get reallocated as per productivity, with
inefficient firms driving out the inefficient ones- leads to
increased overall productivity and growth in the
economy.
8. LARGE v. SMALL ENTERPRISES: POST 1991
What did liberalisation do for MSMEs?
• Total working MSME units: 105.21 lakh (2001-02) v.
447.73 lakh (2011-12).
• Alteration in institutional arrangement: dereservation of
products for MSMEs; increased competition with the
large scale sector.
• Induction into a competitive environment proved too
sudden for MSMEs (given lack of capital, marketing
opportunities, innovation, skilled workforce); OUTCOME:
Sick units: 0.2 million (1990) v. 0.3 million (2000)/ Rate of
exports: 31% to 18%.
9. Comparative
Overview:
How the 1991
reforms treated and
impacted
SSIs/MSMEs vis-à-vis
Large Scale
Industries.
Years Factories (%
growth rate)
Employees
(% growth
rate)
Gross
Output (%
growth rate)
SSI Large SSI Large SSI Large
1980-81
to 1984-
85
-0.6 11.9 -2.1 2.1 0.6 8.7
1985-86
to 1990-
91
0.7 15.0 1.5 0.5 7.9 9.6
1980-81
to 1990-
91
0.2 13.7 0.1 1.1 5.0 9.3
10. DOCUMENTATION AND ANALYSIS OF
REGULATORY NORMS
Entry Continuance Exit
ENTRY
Registration
• PROCESS: S. 8(1), MSMED Act. Optional. Manufacturing: Memorandum of
Registration is mandatory.
• ADVANTAGE: Registration ensures the minimum financial interest of the seller
(the MSME owner)- that is, the price for his goods.
Licensing
• Licensing Exemption Notification (1991) under the IDR Act, 1951: no industrial
license required except in case of 6 product groups included in the compulsory
licensing group.
• Item groups reserved for exclusive manufacture by MSMEs.
11. PROCEDURAL NORMS (ENTRY)
• More significant than statutory stipulations in
terms of the hindrance they can potentially
pose: tedious and protracted nature.
• Starting a business: 11 associated procedures
(Delhi); 13 (Mumbai).
• Acquiring a construction permit: 27 steps/
procedures.
• Registering property (for the purpose of use as
a warehouse, for instance): 7 steps/ procedures.
12. ANALYSIS OF NORMS (ENTRY)
• Simplification of the registration process;
• Statutory protection to the financial interest of
the MSME owner;
• Minimal licensing obligations;
• Procedural barriers.
13. CONTINUANCE
Financing
• Outstanding credit gap (beginning of the 12th
plan period): 62% of the credit demand; total
credit demand for micro enterprises = INR 7.9
trillion (2012)!
• Availability of bank credit is low; credit to
MSMEs as a % of NBC: 14.6% (2000) to 8%
(2007).
• Master circular, RBI (2010): guidelines for
lending to MSMEs; targets?; specialised
branches.
14. CONTINUANCE
• High credit cost: reported to be an impediment
by 80% of MSME owners (ET).
• Credit Rating of MSMEs: significance? Role of
governmental policy: SMERA.
• FDI into an MSME: ceiling of 24% for equity
participation lifted with the MSMED Act: subject
only to sectoral caps and regulations now.
• Ease of getting credit in India: 36th position/ 189
countries on the EoDB.
15. CONTINUANCE
Labour
• Concurrent List subject- 44 central enactments:
industrial relations, industrial safety and health,
child and women labour, social security, labour
welfare, employment and training, wages,
others.: irrelevant to the MSME sector.
• Lack of skilled labour.
16. CONTINUANCE
Taxation
• Concerns: Number of payments, long
procedure, non-uniformity across states (World
Bank): 33 annual tax payments; 243 hours/ year
spent in filing; tax payment amounts to 61.7% of
profit. India = 156th of 189 countries.
Tax Benefits, Schemes and Incentives for the
MSME Sector
• Deduction in respect of profit and gains:
ambiguity as to definition of SSIs
• Excise exemption
• Presumptive taxation
17. ANALYSIS OF NORMS (CONTINUANCE)
• Increasing availability of credit: positive role of
the RBI
• Betterment in FDI policy towards MSMEs
• Balancing labour interests with regulatory
framework: avoiding ‘over-legislation’
• Redundancy/ Inapplicability of labour laws
• Protracted procedure for tax payments
• Ambiguity as to definition of SSIs for tax
purposes
18. EXIT
• Section 25, MSMED Act: required the central
government to prescribe a winding up scheme/
closing down procedure: no legal framework till
date: implication- wastage of human, capital
and physical resource.
• SICKNESS (associated with exit): “Erosion in the
net worth due to accumulated losses to the
extent of 50% of its net worth”.
• Causes of sickness: lack of demand; shortage of
working capital; non-availability of raw material;
power shortage; labour, marketing, equipment
and management problems.
19. EXIT
• Revival of sick units- not a priority for banks-
conflicting interests.
• Presidency Towns Insolvency Act (1909)/
Provisional Insolvency Act (1920): disregard the
concept of limited liability; focus of litigation:
reovering statutory dues; not revival of the
MSME unit. LLP Act, 2008.
20. ANALYSIS OF NORMS (EXIT)
• Rehabilitation and resolving insolvency
measures to be aimed at revival
• Legal framework for exit
21. INTERNATIONAL COMPARISON
How does the EoDB Index
work?
o A composite of 2 measures:
• DTF Score
• EoDB Ranking
Indicators
• Starting a Business
• Construction Permits
• Getting Electricity
• Registering Property
• Getting Credit
• Protecting Minority
Investors
• Paying Taxes
• Trading Across Borders
• Resolving Insolvency
EoDB: Business
Environment in
India
Comparison with
China, Russia,
Bangladesh
Relevance of the EoDB for MSMEs
A comprehensive measure of how easy/
difficult it is for a local entrepreneur to
open and run a small to medium-sized
enterprise when complying with relevant
regulations.
22. Where does India Stand?
5
5
2
3
1
1
5
2
4
3
DB TOPIC/
PARAMETER
DB RANK
2015/2014
ALONG THE
TOPIC
DISTANCE TO
FRONTIER
SCORES
2015/2014
Starting a Business 158/ 156 (-2) 68.4/ 65.54
(+2.88)
Dealing with
Construction
Permits
184/183 (-1) 30.89/ 29.70
(+1.19)
Getting Electricity 137/ 134 (-3) 63.06/ 62.55
(+0.51)
Registering
Property
121/115 (-6) 60.40/ 60.40 (-)
Getting Credit 36/ 30 (-6) 65.00/ 65.00 (-)
Protecting
Minority Investors
7/ 21 (+14) 72.50/ 65.83
(+6.67)
Paying Taxes 156/ 154 (-2) 55.53/ 55.64 (-
0.11)
Trading Across
Borders
126/ 122 (-4) 65.47/ 64.89
(+0.58)
Enforcing
Contracts
186/ 18 (-) 25.81/ 25.81 (-)
Resolving
Insolvency
137/ 135 (-2) 32.60/ 32.43
(+0.17)
23. POLICY RECOMMENDATIONS
Drawing up a distinction
between micro, small and
medium enterprises at a policy
level
Starting a business:
minimisation of procedural
compliances required
Better monitoring mechanism
with respect to finance for
MSMEs
Simplification of labour
regulatory framework
Inclusive method of
checking compliance
with regulatory norms
Taxation: Need for
simpler procedure and
non-ambiguity in laws
Addressing lack of
awareness
Legal framework for an
exit scheme