In a developing country like India, MSME industries are the backbone of the economy. The MSME sector contributes to 45% of India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial units of the country and more than 6000 types of products are manufactured in these industries (As per msme.gov.in). When these industries grow, the economy of the country grows as a whole and flourishes. These industries are also known as small-scale industries or SSI’s.
The MSME became operational on October 02, 2006. It was established to promote, facilitate
and develop the
competitiveness of the micro, small and medium enterprises.
MSME are classified into two categories:
i. Manufacturing enterprise; and
ii. Service enterprise.
They are defined in term of investment in Plant and Machinery/ Equipment as below
| MICRO | SMALL | MEDIUM | |
|---|---|---|---|
| Manufacturing Enterprises | Rs 2,500,000 | Less than Rs 50,000,000 | Less than Rs 100,000,000 |
| Service Enterprises | Less than Rs 10,00,000 | Less than Rs 20,000,000 | Less than Rs 50,000,000 |
Aadhaar card is a 12 digit number given to all individuals by the government. In this, the Aadhaar card is a mandatory requirement. The benefit of registering in this scheme is ease in availing credit, loans, and subsidies from the government. Registration can be done both ways in the online mode or the offline mode.
Zero Defect Zero Effect:In this model, goods that are manufactured for export have to adhere to a certain standard so that they are not rejected or sent back to India. To achieve this the government has launched this scheme. In this, if the goods are exported these are eligible for some rebates and concessions.
Quality Management Standards & Quality technology Tools:Registering in this scheme will help the micro, small and medium enterprises to understand and implement the quality standards that are required to be maintained along with the new technology. In this scheme, activities are conducted to sensitize the businesses about the new technology available through various seminars, campaigns, activities etc.
Grievance Monitoring System:Registering under this scheme is beneficial in terms of getting the complaints of the business owners addressed. In this, the business owners can check the status of their complaints, open them if they are not satisfied with the outcome.
Incubation:This scheme helps innovators with the implementation of their new design, ideas or products. Under this from 75% to 80% of the project cost can be financed by the government. This scheme promotes new ideas, designs, products etc.
Credit Linked Capital Subsidy Scheme:Under this scheme, new technology is provided to the business owners to replace their old and obsolete technology. A capital subsidy is given to the business to upgrade and have better means to do their business. These small, micro and medium enterprises can directly approach the banks for these subsidies.
Women Entrepreneurship:This scheme is especially started for women who want to start their own business. The government provides capital, counseling, training and delivery techniques to these women so that they manage their business and expand it.