You are on page 1of 23

MICRO, SMALL & MEDIUM ENTERPRISES

IN INDIA

AN OVERVIEW

Definition of MSME
In India, the enterprises have been classified broadly into two categories 1. Manufacturing ; and 2. Those engaged in providing /rendering of services. 3. oth categories have been further classified into !icro, s!all and !ediu! enterprises based on their invest!ent in plant and !achinery or on e"uip!ent. The present ceiling of invest!ent to be classified as !icro, s!all or !ediu! enterprises is as under #

Classificati Investment ceiling for plant, on Machinery or Equipments Manufacturing Service Enterprises Enterprises Upto Rs. 25 la h Upto R. !" la h #$ove Rs. 25 #$ove Rs. !" la h % upto Rs. 5 la h % upto crore Rs. & crore #$ove Rs. 5 #$ove Rs. 2 Crore an upto crore % upto Rs. !" crore Rs. 5 crore

Micro Small

Me'ium

Some Important Schemes of Ministry of MSME, Govt. of India are as under :


1. 2. '. #. .. /. 0. 3 1!. 11. 12. 1'. 1#. 1.. 1/. 10. Credit Guarantee Scheme ISO !!!"1#!!1 Certification $ee %eim&ursement Scheme Micro ( Sma)) Enterprises C)uster Deve)opment *ro+ramme Credit ,in-ed Capita) Su&sidy Scheme Inte))ectua) *roperty %i+hts for MSMEs Incu&ator Scheme 1ua)ity Mana+ement Standards"1ua)ity 2echno)o+y 2oo)s Mini 2oo) %oom Mar-etin+ 4ssistance 5 6ar Code7 ,ean Manufacturin+ Competitiveness pro+ramme 2echno)o+y 8p +radation S-i)) Deve)opment Mar-etin+ ( procurement E9port *romotion Infrastructura) Deve)opment :ationa) 4;ards %a<iv Gandhi 8dyami Mitra =o<na 5 %G8M=7

CREDIT GUARANTEE SCHEME


(o ensure $etter flo) of cre'it to micro an' small enterprises $y minimi*ing the ris perception of $an s+financial institutions in len'ing )ithout collateral security, the ,overnment launche' Cre'it ,uarantee -un' Scheme for MSMEs in #ugust 2""". this scheme covers collateral . free cre'it facility e/ten'e' $y eligi$le len'ing institutions to ne) an' e/isting MSEs for loan upto Rs. !"" la h per $orro)ing unit. (he guarantee cover is upto 051 oif the cre'it sanctione' 2351 in respect of loans upto Rs. 5 la h an' 3"1 for loans provi'e' to MSEs o)ne' +operate' $y )omen an' all loans in the 4orth East Region 5

ISO 9000/14001 CERTIFICATION FEE REIMBURSEMENT SCHEME

(o enhance the competitive strength of the MSEs, the ,overnment intro'uce' a scheme to incentives technological up gra'ation , quality improvement an' $etter environment management $y the MSEs. (he scheme reim$urses 051 of the fees, su$6ect to a ma/imum of Rs. 05,"""+. for acquiring 7uality Management System 2 7MS5+IS8 9""" certification an' + or Environment Management 2EMS5:IS5 !;""! certification $y the MSEs.

MSE CLUSTER DEVELOPMENT PROGRAMME (he Micro an' Small Enterprises Cluster <evelopment =rogramme 2 MSE C<=5 is implemente' for holistic 'evelopment of clusters of MSEs. (he programme envisages measures for capacity $uil'ing, s ill 'evelopment, technology up gra'ation of the enterprises, improve' cre'it 'elivery, mar eting support, setting up of common facility centers etc, $ase' on 'iagnostic stu'ies carrie' out in consultation )ith cluster units an' their collectives an' management of cluster. )i'e facilities $y the cluster collectives.

CREDIT LINKED CAPITAL SUBSIDY SCHEME (he Cre'it >in e' Capital Su$si'y Scheme 2 C>CSS5 aims at facilitating technology up. gra'ation $y provi'ing !51 upfront capital su$si'y ).e.f. 29th Septem$er , 2""5 to manufacturing MSEs, on institutional finance upto Rs. ! crore availe' of $y them for in'uction of )ell esta$lishe' an' improve' technologies in the specifie' su$ sectors+pro'ucts approve' un'er the scheme.

I:2E,,EC284, *%O*E%2= %IG>2S $O% MSEs.


(his Scheme has $een launche' to ena$le In'ian MSMEs to attain glo$al lea'ership position an' to empo)er them in using effectively the tools of Intellectual =roperty Rights 2 I=R5 of innovative pro6ects. (he main features of the scheme are #)areness+Sensiti*ation =rogramme on I=R =ilot Stu'ies for Selecte' Clusters+,roups of In'ustries Interactive seminars+?or shops Speciali*e' (raining #ssistance for ,rant of =atent+,I Registration Setting up of I= -acilitation Centre 2 I=-C5 Interaction )ith International #gencies. (hese initiatives are $eing 'evelope' through =u$lic.=rivate =artnership 2==5 Mo'e.

i. ii. iii. iv. v. vi. vii.

Entrepreneuria) and Mana+eria) Deve)opment of SMEs throu+h Incu&ators.


(he Scheme aims at nurturing innovative $usiness i'es 2 ne)+ingenious t&echnology, processes, pro'ucts, proce'ures etc.5 )hich coul' $e commerciali*e' in a year. Un'er the scheme, various institutions li e Engineering Colleges, Research >a$s etc )ill $e provi'e' fun's upto Rs. @.25 la h for han'hol'ing each ne) i'ea+entrepreneur. (he incu$ator )ill provi'e technology gui'ance, )or shop an' >a$ support an' lin age to other agencies for successful launching of the Ausiness an' gui'e the entrepreneur in esta$lishing the enterprise.

184,I2= M4:4GEME:2 S24:D4%DS ( 184,I2= 2EC:O,O,G= 2OO,S


,overnment of In'ia launche' a scheme, BEna$ling Manufacturing Sector $e Competitive through 7uality Management Stan'ar's 2 7MS5 an' 7uality (echnology (ools 2 7((5 IC in or'er to improve quality an' pro'uctivity in the MSE sector, (he scheme is aime' at improving the quality of the pro'ucts in the MSE sector an' inculcate the 7uality consciousness in this sector. (he ma6or activities un'er the scheme are i. Intro'uction of #ppropriate Mo'ules for (echnical Institutions ii. 8rgani*ing #)areness Campaigns for MSEs iii. 8rgani*ing Competition.?atch 2 C.?atch5 iv. Implementation of 7uality Management Stan'ar's an' 7uality (echnology (ools in selecte' MSEs v. Monitoring International Stu'y Missions vi. Impact stu'ies of the initiatives.

MI:I 2OO, %OOM


Un'er the scheme. BMini (ool Rooms un'er === mo'C, competitive $i''ing from entrepreneurs an' #ssociations )ill $e invite' to set up (ool Rooms )ith ,overnment support upto Rs. 9 crore. (hey )ill $e more competitive an' user frien'ly as they )ill $e $oun' $y the ,overnment proce'ure an' competitiveness )ill $e the only criteria for selection of promoters of these (ool Rooms. (he approve' =lan e/pen'iture un'er the Scheme is Rs. !&5 crore.

M4%?E2I:G 4SSIS24:CE"S8**O%2 2O MSEs 564% CODE7


(he o$6ective of this scheme is to populari*e the Aar co'e registration an' motivate the small an' micro manufacturing enterprises to a'opt the Aar Co'e Certification on large scale an' to sell their value a''e' pro'ucts )orl')i'e an' ena$le higher e/port price reali*ation It also helps in 'omestic mar eting 2 )holesale % retail5. 051 of annual fee 2 recurring5 of Aar Co'e Certification for the first three years are reim$urse' to MSEs un'er the scheme.

,E4: M4:8$428%I:G COM*E2I2I@E:ESS *%OG%4MME $O% MSEs


Un'er this scheme MSMEs )ill $e assiste' in re'ucing their manufacturing costs, through proper personnel management, improve' process flo)s, re'uce engineering time an' so on. >M= also $rings improvement in the quality of pro'ucts an' lo)ers costs )hich are essential for competing in national an' international mar ets. (he total ,8I contri$ution is stipulate' as Rs. 23.@o crore 2 appro/5 for this scheme, the $roa' activities planne' un'er the scheme inclu'e (otal =ro'uctive Maintenance 2 (=M5, 5S, Disual Control, Stan'ar' 8peration =roce'ures, Eust in (ime, Fan$an System, Cellular >ayout, =o a Go e, (=M etc. (he scheme has $een approve' as a pilot pro6ect for >ean (echniques interventions in !"" Mini Clusters.

(he main o$6ective of the scheme is to $ring the MSME sector an' 'esign e/pertise into a common platform an' to provi'e e/pert a'vice an' solutions on real time 'esign pro$lems, resulting in continuous improvement an' value. a''ition for e/isting pro'ucts. It also aims at value a''e' costs planne' un'er the scheme inclu'e creation of <esign Clinics Secretariat along )ith regional centers for intervention on the 'esign nee's of the MSME sector.

DESIG: C,I:IC SC>EME $O% MSMEs

(he o$6ective of this scheme is to i'entify an' encourage those clusters of MSMEs )hich have quality pro'uction an' e/port potential an' assist them to achieve competitiveness in the national an' international mar ets. (he scheme aims at improving the mar eting competitiveness of MSME sector $y improving their techniques an' technology for pr"motion of e/ports. (he ,oI contri$ution is stipulate' as Rs. !9 crore for this scheme. (he $roa' activities plane' un'er the scheme inclu'e technology up gra'ation in pac aging , 'evelopment of mo'ern mar eting techniques, competition stu'ies, etc.

M4%?E2I:G 4SSIS24:CE 4:D 2EC>:O,OG= 8*G%4D42IO: SC>EME $O% MSMEs

2echno)o+y and 1ua)ity 8p+radation Support to MSMEs


(he o$6ective of this scheme is to sensiti*e the manufacturing sector in In'ia to upgra'e their technologies, usage of energy efficient technologies to re'uce emissions of ,reen House ,asses, a'option of other technologies man'ate' as per the glo$al stan'ar's, improve their quality an' re'uce cost of pro'uction et, to)ar's $ecoming glo$ally competitive. (he ma6or activities plane' un'er the scheme inclu'e Capacity Auil'ing of MSMEs Cluster for Energy Efficiency+Clean <evelopment Interventions, Implementation of Energy Efficient (echnologies in MSME sector, setting up of Car$on cre'it aggregation centers an' encouraging MSMEs to acquire pro'uct certification licences from 4ational+ International $o'ies.

S?I,, DE@E,O*ME:2
?ith an o$6ective to create self employment, the entrepreneurship an' s ill 'evelopment scheme is implemente' $y 8ffice of the <C2MSME5 through its net)or of 59 MSME I <IS an' their $ranches,. (he programmes are con'ucte' inclu'e Entrepreneurship <evelopment, Entrepreneurship an' S ill <evelopment, Management <evelopment an' Ausiness S ill <evelopment. (hese programme are con'ucte' for unemploye' youth against a nominal fee an' in some cases stipen' is also provi'e'.

M4%?E2I:G 4:D *%OC8%EME:2


Un'er ,overnment Stores =urchase =rogramme, various facilities are provi'e' to enterprises registere' )ith 4ational Small In'ustries Corporation 2 4SIC5 in or'er to assist them for mar eting their pro'ucts in competitive environment. (hese facilities are i. Issue of ten'er sets free of cost ii. E/emption from payment of Earnest money 'eposit iii. ?aiver of Security <eposit upto the Monetary >imit for )hich the unit is registere' iv. =rice preference upto !51 over the quotation of large scale units, In a''ition to this some items have $een reserve' for e/clusive purchase from MSE sector.

EA*O%2 *%OMO2IO:
i. ii. E/port promotion form the MSE sector has $een accor'e' a high priority. (o help MSEs in e/porting their pro'ucts, the follo)ing facilities+incentives are provi'e' =ro'ucts of MSE e/porters are 'isplaye' in international e/hi$ition an' the e/pen'iture incurre' is reim$urse' $y the ,overnment (o acquaint MSE e/porters )ith latest pac aging stan'ar's, techniques etc training programme on pac aging for e/porters are organi*e' in various parts of the country in association )ith the In'ian Institute of =ac aging Un'er the MSE Mar eting <evelopment #ssistance 2 M<#5 Scheme, assistance is provi'e' to in'ivi'uals for participation in overseas fairs+e/hi$itions, o overseas stu'y tours. (he scheme also offer assistance for Sector specific mar et stu'y $y MSE #ssociating +E/port =romotion Councils+-e'eration of In'ian E/port 8rgani*ation Initiating+contesting anti 'umping cases $y MSE #ssociations an' Reim$ursement of 051 of the one time registration fee an' annual fee charge' $y ,SI In'ia for a'option of Aar Co'ing.

iii.

a. $. c.

I:$%4S2%8C28%E DE@E,O*ME:2
-or setting up of in'ustrial estates an' to 'evelop infrastructure facilities li e po)er 'istri$ution net)or , )ater telecommunication, 'rainage an' pollution control facilities, roa's, $an s, ra) material, storage an' mar eting outlets, common services facilities an' technological $ac up services etc for MSMEs, the integrate' Infrastructural <evelopment 2II<5 Scheme )as launche' in !99;. the scheme covers rural as )ell as ur$an areas )ith a provision of 5"1 reservation for rural areas an' 5"1 in'ustrial plots are to $e reserve' for the micro enterprises. (he scheme also provi'es upgra'ation+strengthening of the infrastructural facilities in the e/isting in'ustrial estates. (he estimate' cost to set up an II< Centre is Rs. 5 Crore. Central ,overnment provi'e' ;"1 in case of general states an' upto 3"1 for 4orth East Region, E%F, H.=. an' Uttra han' as grant an' remaining amount coul' $e loan fro SI<AI+Aan +-inancial Institutions or the state -un's.

:42IO:4, 4B4%DS
$%T&I'( )* &+&,$( -.$%, /&T%0),1 2&3 &,% &( *)'')+( 2I5 .ational &ward for outstanding %ntrepreneurship in Micro 4 (!all %nterprises engaged in !anufacturing -irst 4ational #)ar'J Rs. !,"","""+. cash pri*e , a (rophy an' a Certificate. Secon' 4ational #)ar' J Rs. 05,"""+. cash pri*e, a (rophy an' a Certificate (hir' 4ational #)ar' J Rs. 5","""+. cash pri*e, a (rophy an' a Certificate Special 4ational #)ar' to outstan'ing ?omen Entrepreneur J Rs. !,"","""+" cash pri*e, a (rophy an' a Certificate. Special 4ational #)ar' to outstan'ing SC+S( Entrepreneurs J Rs. !,"","""+.cash pri*e, a (rophy an' a Certificate. Special 4ational #)ar' to outstan'ing Entrepreneur from 4ER inclu'ing Si imK Rs. !,"","""+. cash pri*e, a (rophy an' a Certificate. 2II5 .ational &ward for )utstanding %ntrepreneurship in Micro 4 (!all %nterprises rendering services . -irst 4ational #)ar'J Rs. !,"","""+. cash pri*e , a (rophy an' a Certificate. Secon' 4ational #)ar' J Rs. 05,"""+. cash pri*e, a (rophy an' a Certificate 2III5 4ational #)ar' for outstan'ing Entrepreneurship in Me'ium Enterprises engage' in manufacturing . Secon' 4ational #)ar' J Rs. !,"","""+. cash pri*e, a (rophy an' a Certificate Secon' 4ational #)ar' J Rs. 05,"""+. cash pri*e, a (rophy an' a Certificate 2ID5 & (pecial ,ecognition &ward. # Special Recognition #)ar' to those MSMEs scoring mar s a$ove 3" percent an' 2 5" percent in case of 4orth Eastern Regions inclu'ing Si im5 )ill $e given )ith a Cash pri*e of Rs. 2","""+. each a Certificate an' a (rophy at the state >evel -unction to $e organi*e' $y <irector MSME <I. (he #)ar's un'er category 2$5 )ill $e given once in a calen'ar year for the selecte' =ro'uct ,roups 8ne #)ar' )ill $e given for each =ro'uct ,roup covere' in the list of the Select =ro'uct ,roups for the year #)ar'. 4ational a)ar' for selecte' pro'ucts in Micro % Small Enterprises Rs. !,"",""" a Cash =ri*e a Certificate an' a (rophy. # special recognition a)ar' to those MSEs scoring mar s a$ove 3" percent 2 5" percent in case of 4orth Eastern Region inclu'ing Si im5 )ill $e given )ith a Cash pri*e of Rs. 2","""+. each a certificate an' a (rophy at the State >evel -unction t $e organi*e' $y <irector MSME <I. The $etails of awards under category 2 c3 are as under 4ational a)ar' for Research an' <evelopment Efforts in Micro % Small Enterprises J a. -irst 4ational #)ar'J Rs. !,"","""+. cash pri*e , a (rophy an' a Certificate. $. Secon' 4ational #)ar' J Rs. 05,"""+. cash pri*e, a (rophy an' a Certificate 2. 4ational #)ar' for Research % <evelopment Efforts in Me'ium Enterprises a -irst 4ational #)ar'J Rs. !,"","""+. cash pri*e , a (rophy an' a Certificate. $ Secon' 4ational #)ar' J Rs. 05,"""+. cash pri*e, a (rophy an' a Certificate & & special ,ecognition &ward # special Recognition #)ar' to those MSMEs scoring mar s a$ove 3" percent 2 5" percent in case of 4orth Eastern Region inclu'ing Si im5 )ill $e given a Cash pri*e of Rs, 2","""+. each, a Certificate an' a (rophy at the State >evel -unction to $e organi*e' $y <irector, MSME <I

%4CI@ G4:D>I 8D>4MI MI2%4


,a5iv 0andhi -dya!i Mitra 1o5na 2 ,0-M15 Ra6iv ,an'hi U'hyami Mitra Go6na 2R,UMG5 is to provi'e han'hol'ing support an' assistance to the potential first generation entrepreneurs )ho have alrea'y successfully complete' E<=+S<=+ES<=+D( programmes, through the selecte' lea' agencies i.e. BU'yami MitrasL in the esta$lishment an' management of the ne) enterprises in 'ealing )ith various proce'ural an' legal hur'les an' in completion of various formalities require' fo setting up an' running of the enterprise -dya!i Mitras # Un'er R,UMG, financial assistance )oul' $e provi'e' to the selecte' lea' agencies i.e. U'yami Mitras for ren'ering assistance an' han'hol'ing support to the potential first generation entrepreneurs.