MSME-Micro, Small and Medium Enterprises:
- MSME stands for Micro, Small and Medium Enterprise. MSME or SSI enterprises are the foundation of any economy and are an engine of economic growth, advancing impartial improvement for all.
- Enterprises have been classified broadly into:
- Enterprises engaged in the Manufacture / production of Goods pertaining to any industry; &
- Enterprises engaged in providing / Rendering of services
- Financial assistance is available from Banks and institutions depending upon the project requirement and promoters background
- MSME in India are governed by the MSMED Act 2006 and the subsequent circulars and notifications by the Government from time to time .
Share of MSMEs in India
The Micro,Small and Medium Enterprises occupies strategic importance in terms of output (about 45% of manufacturing output),exports(about 40% of the total exports) and employment (about 69 million person since over 29 million units through out the country)based on the Planning Commission data.
Worldwide Trends in the SME Sector
Japan – SMEs employ 70% of the wage earners and contribute 55% of the value-added.
Thailand – SMEs employ 60.7% of the population while contributing 38% to the GDP.
China–SMEs contribute to over 68%of the exports–in the last 20 years created more SMEs than the total number of SMEs in Europe and the US combined.
Objectives of MSME Sector
Promoting competitiveness and productivity in the MSME space. Making the MSME sector innovative, improving technology and depth.
Enabling environment for promotion and development of MSMEs. Strong presence in exports.
Improved managerial processes in MSMEs.
The Importance and role of MSMEs in the Indian Economy:
– To Generate Large Scale Of Employment
– To sustain economic growth and increase exports
– Making Growth Inclusive -focus on people’s skills and Agency
Benefits available to MSME Enterprises:
– Credit prescription (Priority sector lending), differential rates of interest etc.
– Excise Exemption Scheme
– Exemption under Direct Tax Laws. – Statutory support
– Priority Lending
–Fewer interest rates and availability and access to greater credit
-Capital and other grants for infrastructure development
-Reimbursement of ISO Certification
-Technology and quality up-gradation support to MSMEs
-Collateral free loans from banks
-Eligiblefor industrial promotion subsidy
-Concession in electricity bills
- Definition of MSME : Eligibility criteria limit enhanced to extend more benefits to MSMEs:
2. Bank Facilities limit increased for Term Loans & Working Capital:
How can we help
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