The Micro, Small, and Medium Enterprises (MSME) policy of India aims to promote the growth and development of small and medium-sized businesses in the country. The policy includes various initiatives such as easier access to credit, technology upgradation, infrastructure development, skill developm...
MSME Policy of India
Social Enterpreneurship Social Enterpreneurship MSME Policy of India
IN PROGRESS
Introduction
Industries have played an important role in the economic development of India
during pre and post- independence era. Within the Industrial sector, Micro,
Small and Medium Enterprises (MSMEs) holds one of the most important
places in the Indian Economy. These enterprises contribute significantly to the
economy via generation of employment, national income, foreign exchange,
exports, and other measures. This sector accounts for 40 per cent of total
manufacturing output and approximate 40 per cent of total exports. MSMEs
contribute around 8 % of GDP. MSMEs are significantly contributing
in the economic development of the rural areas as well and are providing
largest employment to the ruralites. These enterprises are more labour
intensive and an important tool for rural industrialization. This sector is
reducing regional imbalances and widespread income and wealth inequalities.
Due to these invaluable contribution of MSME sector, government of India has
initiated various programmes and policy measures for the promotion and
development of this sector. During the last few years, government of India has
initiated many innovative and protective policy measures for this micro, small,
and medium enterprises. Due to liberal approach of government towards this
sector, academicians say “India has as much industrial policies as it has
industries”. With this view, let us discuss the various policy initiatives of the
government for the promotion of micro, small, and medium enterprises.
, Overview of MSMEs
Micro, Small and Medium Enterprises (MSMEs) consist of those
enterprises which are engaged in production of goods which pertains to any
industry and are specified in the first schedule of Industry Development
&Regulation Act, 1951. These enterprises can be further classified as
registered and unregistered Enterprises.
Registered Enterprises and Unregistered Enterprises
Registered enterprises are those enterprises which are registered with some
government department or board. Fourth All India Census on MSMEs defines
registered enterprises as; those enterprises which are registered permanently
with the state directorate of Industries/ District Industries Centres (DIC) and
Unregistered enterprises are those enterprises which are not registered with
directorate of Industries or DIC.Further these registered and unregistered
MSMEs are subdivided in to those enterprises which are engaged in
manufacturing activities and service providing activities on the basis of the
amount of Investment. Investment amount means;amount invested in the
plant and machinery in case of manufacturing sector and investment in
equipments in case of service sector.
Definition of MSMEs
As per MSME Development Act, 2006, following are the classification of
MSMEs on the basis of their investment in plant & machinery and equipments:
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