#6 MSME Schemes

Ministry of MSME plays a key role in providing an ecosystem that nurtures entrepreneurship and empowers MSMEs. This sector contributes 30% of GDP, 48% of exports, 45% of manufacturing output, and 40% of employment in the country. India has over 6.50 Crore MSMEs of which 98% are micro enterprises. Around 11 crore people are employed and more than 6000 products and services are being offered in MSME sector. In order to mainstream MSMEs and also enter into global chain, MSMEs are redefined based on Investment and turnover.

Ministry of MSME works under broadly 5 verticals with its subordinate organisations namely KVIC, NSIC, Coir Board, NI-MSME, MGIRI and MSME-DI.

?1.?Finance Facilitation:

????? a. Access to credit is very difficult for MSMEs and hence collateral free loans upto 5 Crore can be availed through CGTMSE. ?Also a capital subsidy is being provided through PMEGP and CLCSS for micro and small enterprises.

????? b. Self-Reliant India (SRI) is an excellent initiative with a corpus fund of Rs 50,000 Crore. This seed fund is to enhance equity, quasi equity and debt financing for the growth needs of MSMEs.

?2.?Skill Development

????? a. Several schemes for entrepreneurship and skill development programs

????? b. Assistance to training Institutions.

?3.?Technology enablement

????? a. To bridge the gap in technology awareness, its a very good intervention of MSME especially access to technology, upgrade technology etc

????? b. SFURTI and MSE-CDP initiatives are to promote cluster development

?4.?Market Linkage

????? a. In order to enter into global value chain, MSMEs can participate in trade fairs and Chambers can conduct exhibitions through PMS and IC schemes.

????? b. Public procurement policy is to provide marketing support to MSEs, It was made mandatory for PSU to procure 25% of their total purchases, from MSEs including a special provision for women and underprivileged.

?5.?Ease of doing business

????? a. Udyam portal is a step towards ease of doing business for MSMEs. It’s a self-registered portal, user friendly and free of cost. Udyam registration is must to avail any benefits through MSME schemes.

????? b. Champion portal is a one stop place for MSME grievances and handholding new setups in the areas including finance, market access, technology upgradation, skill development etc.

?????i.?MSME innovative scheme is an amalgamation of Incubation, Design and IPR schemes. Have tie-ups with IISc, IITs, NITs as implementing agency on how to diversify design or create a viable business model

?????ii. Zero Defect Zero Effect scheme (ZED) is to enhance MSME competitiveness and make them sustainable better grading will increase credit rating.

?????? c. MSME Sambandh helps in monitoring items purchase and total procurement by CPSEs. CPSEs have made procurement of Rs 50,000 crores benefiting 2 lakh MSEs annually from the past 3 years.

????? d. Government e-Marketplace (GeM) is to facilitate online procurement of common use Goods & Services required by various Govt Dept and PSUs.

????? e. MSME Samadhan is to address delayed payments for MSE suppliers by the buyers. From the date of launch, around 25,000 cases have been disposed by MSEFCs involving an amount of Rs 7500 crore.

?A few other initiatives:

?????????i.?Raising and Accelerating MSME performance (RAMP) supports market access, firm capabilities and access to finance while strengthening Institutions and Governance of the MSME program

??????????ii. MSME Sampark is an online placement portal where job-seekers skilled from MSME tool rooms and technical institutions and Industries can interact for smooth process of hiring. Around 35,000 jobs have been offered through this initiative as on date.

??????????iii.?Samarth Initiative to provide skill development and market development assistance to women.

???????????iv.?Lean scheme helps in competitive line by enhancing the productive, efficiency and competitiveness by reduction of wastages in processes, inventory management, space management, energy consumption etc.

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Good reforms create a conducive environment for sustainable growth, yet, in order to progress, people should utilize the available resources by leveraging their background and acquired talents.