Diverse schemes for MSMEs in India

02-March-2021

Diverse schemes for MSMEs in India

Company - msme

The micro small and medium enterprises in India are the most profitable enterprises in recent times. It is because; the government of India introduces several schemes that give wings to the MSMEs to fly. The ministry of MSMEs in India recently introduced many methods to promote and boost the operations of MSMEs in India. All these schemes come under the chairmanship of Honorable Prime Minister Shri Narendra Modi.

All these schemes for MSMEs are to ensure that the MSMEs will grow actively. This growth will also offer a positive impact on the economy of the country. Further, these schemes have also been made easily accessible, so that the MSMEs can get it without any middleman involved.

On the other hand, Covid-19 pandemic in recent times has created an impeccable impact on the MSME sector. So, to provide immediate relief to MSMEs, the government came up with several atmanirbhar packages. Some of the notable packages are:

• INR three lakh crore of auto-process loans would be provided to the MSMEs to buy raw materials and other operational materials so that they can restart their business post-pandemic

• Revising the MSME definition to offer more benefits to the MSME sector

• Eliminating the global tenders in gaining up to INR 200 crore, so that the domestic MSME industry will get attractive opportunities

• Eliminating all the dues of MSMEs and PSUs within 45days

In brief about MSME

MSMEs in India play a vital role in creating job opportunities. And that too at relatively low cost as compared to more giant industries. For example, to set up a full-fledged large company, you would need more capitals. But eventually, you will offer employment opportunities with the almost same package. But at the same time with minimum capital requirements, the MSMEs create thousands of job opportunities with the same package.

In simple terms, the MSMEs are those sectors that empower industrialization in rural and backward areas. So, this, as a result, helps those backward regions to fight regional imbalances and get equal job opportunities as compared to the urban areas.

Revised classification of MSMEs as of 1st July 2020

Type of industry	Investment in plant and machinery	Annual turnover
Micro	Not more than INR 1 crore	Not exceeding INR 5 crore
Small	Not more than INR 10 crore	Not exceeding INR 50 crore
Medium	Not more than INR 50 crore	Not exceeding INR 250 crore

Several types of schemes introduced for MSMEs in India

Scheme-1: The prime minister Employment generation program and distinct credit support plan

Prime minister employment generation program/PMEGP

This is a program introduced under the honourable prime minister of India Shri Narendra Modi that focuses only on one goal. And it is creating immense job opportunities for youth via MSMEs. The khadi and village industry commission of India/KVIC supervise the scheme at the national level.

Credit guarantee trust fund for micro and small industries

This is a program that guarantees a trust fund for micro and small enterprises. Further, this program comes under the joint establishment of Ministry of MSME, and SIDBI.

Interest subsidy eligibility certificate

This is a scheme that has been introduced with only one motto. And that is the mobilizations of funds from banks. This is executed so that the ministry can fill up a gap between actual fund necessity, and capital available from the budgetary paths.

Scheme-2 Expansion of village khadi, and coir enterprises

Market promotion and development program

This scheme is a compilation of diverse of MSME schemes integrated by the Khadi industries. It also involves promotion, marketing development aid, and publicity.

Restored scheme of fund for the regeneration of traditional industry

This scheme comes intending to enhance the traditional industries that have been ignored. It offers sustained employment, empowers the artisans with equipment that they need, and to improve their market.

Coir Vikas Yojana

Under this program, there are several other schemes introduced. It includes:

• Coir industry up-gradation scheme

• Science and technology for coir

• Export market promoting

• The domestic market promotion scheme

• Skill enhancement and Mahila coir Yojana

• Welfare measures under PMSBY

• Trade and industry-related functional assistance service

Scheme-3: Technology Up-gradation and quality accreditation

Financial aid to MSMEs in ZED certification plan

This program focuses on supporting and promoting the Make in India initiative. Further, it also aims to gain zero defects and zero effect production process in MSMEs.

The program that aims to encourage innovation, rural industry, and entrepreneurship

This program, under the MSME development process, aims to create more and more job opportunities. Further, it also boosts the entrepreneurship culture in India.

That implies more industry and more jobs. This scheme also empowers the economic development of rural areas.

National manufacturing competitiveness program NMCP

• Building awareness on IPR

• Empowering the manufacturing sector to be competitive

• Entrepreneurial and managerial improvement of SMEs via incubators

• Technology and quality enhancement

• Slender manufacturing competitiveness for MSMEs

• Design clinic for designed professionals

• Market assistance

• Credit linked fund subsidy for technology enhancement

Scheme-4: Marketing endorsement scheme

International co-operation

As per this scheme, the delegations of the MSME visit to overseas developed countries to come up with new technologies that can boost the MSMEs. They participate in trade fairs and internal exhibitions to discover new ideas.

Marketing assistance scheme

This program offers aid to several activities, like arranging exhibitions abroad and taking part in international exhibitions.

Marketing support scheme and procurement

This MSME plan aims to empower micro and small industries so that they can develop the domestic market with good products. This plan also promotes new market accessibility and offer market linkages.

Scheme 5: Entrepreneur and Skill development program

Entrepreneur and Skill development program

This scheme aims to come up with new programs to develop an entrepreneurship culture in India. It also helps in nurturing the young talents by constructing their capacity in various fields.

Support for training institute

This scheme focuses on offering funds to several training institutes at the national level. This helps in empowering the infrastructure of training institutes that will support and entrepreneur and skill development.

Scheme-6: Infrastructure and development program

This scheme offers funds for the construction of a common facility centre. These common facility centres would be solely for testing, training, and Randamp;D purposes.

Scheme- 7: a scheme that aids surveys studies and policy research

This is the scheme that supports that aims to bring new surveys and policies that can empower the MSMEs.

Scheme-8: Scheme for SC, and ST

This is a scheme that supports the schedule caste and schedule tribe entrepreneurs and fulfils all their necessities.

Scheme-9: Information, education, and communication

The main objective aim of this scheme is to promote several schemes introduced under the ministry of MSMEs so that the new entrepreneurs can know about all the schemes and access them.

Scheme-10: Program that generates funds for traditional industries

Under this scheme, the traditional industries can enhance their operations in India. This is because; this scheme offers funds for traditionalindustries to promote their market and equip them modern methods to manufacture products.

Scheme-11: A scheme that endorses innovation, rural industries, and entrepreneurship

The primary goals of this scheme are to come up with business innovation centres that can boost the idea of entrepreneurship and create new job opportunities for youths of the nation. Further, it also aims to enhance the rural industries, so that they can eliminate the regional imbalances. And for the entrepreneurs, this program provides funds to come up with startups.

Disclaimer:

Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.