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In India, µsmall and medium enterprises¶ (SME) is a generic term used to describe small scale industrial (SSI) units
and medium-scale industrial units. Any industrial unit with a total investment in its fixed assets or leased assets or
hire-purchase asset upto Rs10 million is considered as a SSI unit and investment upto Rs. 100 million is considered
as a medium unit. In addition, an SSI unit should neither be a subsidiary of any other industrial unit nor can it be
owned or controlled by any other industrial unit.

The SME sector produces a wide range of industrial products such as food products, beverage, tobacco and tobacco
products, cotton textiles, wool, silk, synthetic products, jute, hemp & jute products, wood & wood products, furniture
and fixtures, paper & paper products, printing publishing and allied industries, machinery, machines, apparatus,
appliances and electrical machinery. SME sector also has a large number of service industries.

The small scale sector in India comprises of a diverse range of units from traditional crafts to high-tech industries.
The number of SSI working units (registered & unregistered) in India totaled 11.4 million in 2003-04²80.5 per cent of
which are proprietary concerns and 16.8 per cent are partnership firms and private limited companies.

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SSI is one of the significant segments of the Indian economy, contributing about 7 per cent to the Indian GDP and
providing employment to over 28 million people. The Indian SME segment¶s current production value is almost Rs
816,000 crore. It contributes to around 40% of industrial production & exports. It manufactures more than 8,000
diverse products, ranging from low-tech items to technologically-advanced products. The SSI sector targets both
domestic as well global markets. SSIs sector is recognized as the engine of growth, accounting for about 70% of
employment and contributes a significant amount for the growth of GDP. Globally, 99.7 per cent of all enterprises in
the world are SME¶s and the balance 0.3 per cent are large-scale enterprises. By contrast, the SSI sector in India
accounts for 95 per cent of all industrial units.

According to the Ministry of Small Scale Industries, the number of registered SSI units in India has increased from 11
million units in 2002-03 to 11.4 million units in 2003-04, up 3.6 per cent. The fixed investment grew by 5.04 per cent
from Rs. 162,533 crore in 2002-03 to Rs. 170,726 crore in 2003-04. About 8,000 products are manufactured in the
small-scale sector. The production of SSI units in India increased from Rs.311,993 crore in 2002-03 to Rs.357,733
crore in 2003-04.The industry groups²with a large share in the total production of SSIs such as textile products,
wood, furniture, paper, printing, and metal products²have recorded high growth rates.

The exports grew at a faster rate than production in 2002-03. While production at current prices grew by about 10.53
per cent and exports rose by 20.7 per cent from Rs. 71,244 crore to Rs. 86,013 crore between 2001-02 and 2002-03.
The industry groups with a large share in exports are hosiery and garments (29.0%), food products (21.4%) and,
leather products (18%).

The SSI units continue to create employment. The number of employed in the SSI sector went up from 260.13 lakh
in 2002-03 to 271.36 lakh in 2003-04. This sector is next only to agriculture in employment.
CASE SUMMARY
The Micro, Small and Medium enterprises have lent a major hand in catapulting India to the
position of India¶s fastest growing world economies. 40% of the country¶s manufacturing output
and almost 38% of its exports come from this sector. More important in this age of inclusion
centric growth mantra is the fact that MSME¶s generate huge employment ± the present figure is
around 42 billion, and can promote balanced regional development along with a more equitable
distribution of wealth.
Since December, over 38500 accounts of MSMEs have been restructured. The interim budget
has extended the 2% interest rate subvention in shipment credit up to the end of the second
quarter of the next fiscal. The size of refinance facility with SIDBI has been increased by Rs.
10,000 crore. The Central Government is ensuring that the MSME Act, of making payments
within 45 days, is being implemented. Most banks have set up special SME care centres. The
Government on the other hand claims that the problems being faced by MSMEs are being
thoroughly addressed.
But still there are many problems faced by MSMEs. They generally borrow from NBFCs, who
themselves have their own share of liquidity problems. They can barely sustain the existing level
of lending let alone increase it. MSMEs, especially micro export-oriented units are finding it
extremely difficult. The US Customs¶ figures indicate that India¶s textile and garment exports
have declined by 8% since last year. FIEO feels that SIDBI is not being proactive enough. Policy
makers need to take measures that yield immediate results. On the other hand MSME units
should also cut costs in order to have a better restraint during a crisis. Many banks like SBI, PNB
etc have tried to come to rescue of the MSMEs and even others tend to be more safeguarded as
the current liquidity crunch is hard to withstand.
In spite of its impressive performance notwithstanding, MSMEs in the country are faced with
numerous problems that need urgent attention. Despite doubling of credit flow to the sector in
the last two years, most MSMEs are facing massive financial crunch. Thus there are problems of
marketing, infrastructure, access to latest technology and training. The current global meltdown
has rendered a further blow to the sector, as it has led to shrinking of the export markets, made
banks more wary of lending to small entrepreneurs, slowed down remittances from migrant
2|Pag

workers and aggravated the already severe problem of delayed payments from corporate clients.

So a more realistic view is expected from the policy makers as the MSME industry accounts for

a significant value for the country͛s total output and so for this, a more serious policy needs to be

implemented that would yield quick results.

FOCUS OF THE ARTICLE

The main focus of this article is regarding how the government is responding to SMEs after the

economic crisis through SMSE financing.

Impact of Economic Crisis on SME Sector

The recession in the US market and the global meltdown termed as Global recession have

engulfed complete world economy with a varying degree of recessional impact. This recession
led to job losses, dip in sales, profits etc. In India every sector had an impact of recession. The

badly hit sector being the financial sector has led to the liquidity crunch which directly or

indirectly affected many other sectors. SME sector is one among them because the main source

of fund for SMEs is from financial institutions.

SectorsMarch

, 2005March,

2006March,

2007March,

2008March,

2009

Micro (Amount in Rs.

Crore)34315 33314 44311 66702 86508

SmallAmount

(Rs.

Crore)33319 49178 60392 79538 104460

MSEAmount

(Rs.

Crore)67634 82492 104703 148651 190968

Net Banking

Credit(NBC) 71872

2101761

4131770

5136426

8169431
3

MSE Credit as

percentage of

NBC 9% 8% 8% 11% 11.2%

3|Page

Measures taken by Government

In this tough time when the MSMEs are hit hard by the economic crisis, government is making

special focus towards this sector. There are several measures taken by the government and the

RBI for the sustainability and growth of the sector. To minimize the hard blow of recessionary

effects in terms of liquidity crunch, efforts has been made to increase the flow of credit on a

more aggressive level by the banking sector instead of depending on financial institutions. SBI

has revised its loan portfolio and increased the lending to 9000cr and also extended the scheme

till 30th Sept.09, wherein its existing SMEs customers can avail term loans as well as 20%

additional working capital limits at 8% concessional interest. Other banks are also extending

loans to SME customers at soft interest rates. Bank of India is planning to expand its no. of

branches from 86 presently to 100 dedicated especially to SME sector. SME credit of Bank of

India stood at Rs. 25,630/- at June end, further targeting a growth of 25% during the year.

For strengthening the delivery of credit to the MSMEs, the Government announced a ͚Policy

Package for Stepping up Credit to SMEs so as to double the credit flow to this sector within five

4|Page

years. To facilitate the flow of credit to MSMEs, RBI has announced a refinance facility of Rs.

7,000crore for SIDBI which will be available to support incremental lending, either directly to

MSMEs or indirectly via banks, NBFCs and SFCs. In addition, the following steps are being

taken.
(a) To boost collateral free lending, the current guarantee cover under Credit Guarantee Scheme

for SMEs on loans has earlier been extended from Rs. 50 lakh to Rs. 1 crore with guarantee

cover of 50%. It has now been decided to extend the guarantee cover to 85% for credit facility

up to Rs 5 lakh.

(b) The lock in period for loans covered under the scheme will be reduced from 24 to 18 months,

to encourage banks to cover more loans under the guarantee scheme.

Government has made it mandatory for all central and state PSE wings including private units to

make payments to MSMEs units within 45 days of the date of purchase of goods from them. All

public sector banks are to setup Regional MSME Care Centres to facilitate MSME entrepreneurs

for quick redressal of their grievances. The district level committee is also given the role of

assisting MSMEs to access credit. Special monthly meetings of state level bankers' committees

would be held to oversee the resolution of credit issues of MSMEs by banks. Department of

MSME and the department of financial services will jointly set up a cell to monitor progress on

this front.

In order to address the problem of infrastructure, govt. has authorized India Infrastructure

Finance Company Limited (IIFCL) to raise Rs. 10,000 crore to refinance bank lending for

infrastructure projects. A Working Group on Rehabilitation of Sick SMEs as appointed by RBI

made several significant recommendations pertaining not only to the issue of rehabilitation of

sick SMEs but also to the larger issues of credit flow to the SME sector and other developmental

issues.

Focussing towards the delayed payment to the export-oriented units, interest on delayed

payments by foreign buyers (refund of terminal excise duty / duty drawback on deemed exports

and CST) would be payable in lines of provisions in Customs and Income Tax Acts. This facility

would also apply to delayed payments for deemed exports. RBI came out with a proposal to

5|Page
implement Base Rate System under to ease the export credit difficulties for MSMEs. The single

base rate for loans will also help depositors and borrowers to equally avail benefits of monetary

policy as under prevailing BPLR system, banks continue to exercise discretionary powers not to

pass on benefits of monitory policies.

RELEVANCE OF ARTICLE FOR SME FINANCING:

It is often observed that SMEs are going to be the growth engines if a country needs to progress.

In India, the MSME industry accounts for 40% of the Industrial output and 38% of exports. In

case of an economic downturn as in the present scenario, financing the MSME sector becomes

vital for faster recovery and stable economic growth. Ill financing of this sector would result in

liquidity crunch in the hands of the manufacturer which in turn results in delayed payments to its

suppliers and lenders, mainly NBFCs and Banks. This would lead to a widespread liquidity

crunch in the whole economy because MSME contribute around 30% of the manufacturing GDP

and employs 60 million people.

This article also brings forth the importance of government͛s intervention in times of need.

Policy makers and banks need to restructure various MSME loans, provide stimulus packages

such as lower interest rates, easier accessibility to loans etc, various fiscal measures and be

proactive in refinancing. It also brings out the importance of carefully selecting the financing

options available to the SMEs - not entirely depending on bank finance and exports, to maintain

a good working capital and increase the active involvement of institutions like SIDBI. These all

would help the MSMEs to be adequately financed and manage the recessionary trends

effectively.

Suitable topic would be: ͞MSME financing and its importance in economic crisis͟

RECOMMENDATIONS AND SUGGESTIONS:

In the country like India, where there are always some issues associated with the maintenance of

legal practices, implementation is the key concern. There are numerous problems in all the
sectors; many of them have been addressed. But how far, is the question. Secondly the existing

loopholes in the system are further leading to delay in the proper implementation. So a proper

surveillance should be done with respect to whatever steps have been taken by banks for the

6 | P a ge

credit lending to MSMEs. It should be ensured that it is reaching to MSMEs and other people in

the system are not misusing it for their personal interests. Further whenever government/RBI

extends the monetary help to financial institutions to extend it to MSME sector, a check on the

coverage has to be maintained. This is important to address complains as made by Federation of

Indian Export Organisations alleging SIDBI of not being proactive in extending the refinance

facility given by RBI. Although under the MSME Act, Govt. has addressed concerns regarding

delayed payments to MSMEs units, this concern is incomplete/due with regard to payment from

foreign buyers. Moreover, apart from liquidity concerns, special attention is required as far as

infrastructure and technology upgradations are concerned in order to make them competent

enough and support the economy better so that India becomes more water-proof to such

recession in future. This may also be the requirement to cater the growing needs of exporters as

the economy has already verge in the pace of recovery worldwide.

There should be an interest subsidy scheme as one of the major issues for MSMEs getting loans

at higher interest of 1-2% than the prime lending rates of banks. The interest subsidy will help

MSME͛s to save tax which can be beneficial for the future growth of the MSMEs. Gujarat

government has already come out with a scheme to help micro small and medium enterprises in

the state by way of subsidy in interest.

There should be a single and a simple labour law exclusively for MSME as it͛s not feasible for

small firms with minimal resources to comply with multiple laws. Also, most of the SME͛s are

one man operations and they lack the infrastructure to implement the labour laws.

Encouraging selected MSME who have achieved good risk management practices to
diversify their product offerings, and supporting these MSME with a broader advisory

services scope that includes the development of techniques and systems to:

i)mobilize savings;

ii) provide other banking services to low-income households and businesses; and

iii) manage liquid assets;

FUTURE OF SMEs:

7|Page

Revision of provisions by RBI and provisions by government in interim budget show a growth

prospective of SMEs in future. SMEs are slowly recovering from the crisis situation. Economic

Crisis has actually created an opportunity for employees who were fired from their organizations

to come up with their own ventures. The credit flow in the first eight months of 2009 for SMEs

is up around 28% over the same period last year. Micro and small enterprises have seen a credit

flow of Rs 40,146 crore this year compared to Rs 23,865 crore in 2008. The share of SMEs in

the overall credit flow has increased in this period from 4.9% to 13%. When the government of

India announced a policy package in 2005, the total bank exposure to MSMEs was Rs 67,600

crore. All banks were instructed to ensure 20% increase in credit to MSMEs every year so that it

doubles in five years by 2010. In March 2009, the exposure stood at Rs 2,57,000 crore which is

almost four times.

There are few problems being faced by export oriented units because of rupee appreciation

against dollar by 10% from 51Rs/$ to 46Rs/$. This currency appreciation is mainly because of

high capital inflows into the Indian economy. If government takes serious measures inorder to

restrict the excess inflows, the problem of export oriented units gets solved.

SMEs which are demanding for a separate exchange have found a solution. SMEs will now get a

chance to list their stocks in NSE or BSE and raise money from the public. As part of its efforts

to encourage SMEs to go public, the Securities and Exchange Board of India (SEBI) exempted
them from the usual eligibility norms applicable for initial public offerings (IPOs) and follow-on

public offerings. These norms include

Minimum pre-issue net worth and profit-making track record

Minimum paid-up capital requirement is 10 crores to get listed on the main board of NSE

or BSE and maximum paid up capital of 25 crores to get listed on SME exchange

Can disclose financial results on half-yearly basis

Minimum trading lot of 1 lakh shares

100% underwriting and market making for a period of minimum three years is required

by merchant bankers

8|Pag

Thus the listing of SMEs will reduce their dependency on banks and helps them to tap public for

funds. Even the venture capitalists are showing interest in investing in SMEs because of their

growth potential and easier listings will guarantee good exit options for strategic investors in

these illiquid companies. Government of India is also offering 50% subsidy for schools on

entrepreneurship. This sector which contributes 45% to the country͛s manufacturing production

and about 40% to its exports currently is the most important sector which cannot be neglected by

government and the future seems to be bright.

REFERENCES

ͻMonthly Magazine ͞YOJANA͟ ʹ November Edition, 2009

ͻProfessional Banker - Nov Edition, 2009

ͻEconomic Times newspaper (͞SME Factory͟)

ͻwww.smetimes.tradeindia.com/smetimes/.../additional-measures-required-for-sme-

sector.html

ͻwww.business-standard.com/india/news/...base-rate...to...msme.../on - Cached.html
THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

An act to provide for facilitating the promotion and development and enhancing the competitiveness of
micro, small and medium enterprises and for matters connected therewith or incidental thereto.
WHEREAS a declaration as to expediency of control of certain industries by the Union was made under
section 2 of the Industries (Development and Regulation) Act, 1951; AND WHEREAS it is expedient to
provide for facilitating the promotion and development and enhancing the competitiveness of micro,
small and medium enterprises and for matters connected therewith or incidental thereto; BE it enacted
by Parliament in the Fifty-seventh Year of the Republic of India as follows:- 1. (1)

CHAPTER 1

PRELIMINARY

This Act may be called the Micro, Small and Medium Enterprises Development Act, 2006.

Short title and commencement.

(2) It shall come into force on such date as the Central Government may, by notification, appoint; and
different dates may be appointed for different provisions of this Act and any reference in any such
provision to the commencement of this Act shall be construed as a reference to the coming into force of
that provision.

Definitions.

2 In this Act, unless the context otherwise requires,- (a) ͞Advisory Committee͟ means the committee
constituted by the Central Government under sub-section (2) of section 7;

(b) (c)

͞appointed day͟ means the day following immediately after the expiry of the period of fifteen days from
the day of acceptance or the day of deemed acceptance of any goods or any services by a buyer from a
supplier. Explanation For the purpose of this clause,- (i) ͞the day of acceptance͟ means-

65 of 1951

(a)

the day of the actual delivery of goods or the rendering of services; or

(b)
where any objection is made in writing by the buyer regarding acceptance of goods or services within
fifteen days from the day of the delivery of goods or the rendering of services, the day on which such
objection is removed by the supplier;

(ii) ͞the day of deemed acceptance͟ means, where no objection is made in writing by the buyer
regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or
the rendering of services, the day of the actual delivery of goods or the rendering of services;

͞Board͟ means the National Board for Micro, Small and Medium Enterprises established under section
3;

(d) ͞buyer͟ means whoever buys any goods or receives any services from a supplier for consideration;

(e) ͞enterprise͟ means an industrial undertaking or a business concern or any other establishment, by
whatever name called, engaged in the manufacture or production of goods, in any manner, pertaining
to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951
or engaged in providing or rendering of any service or services;

(f) ͞goods͟ means every kind of movable property other than actionable claims and money;

(g) ͞medium enterprise͟ means an enterprise classified as such under sub-clause (iii) of clause (a) or sub-
clause (iii) of clause (b) of sub-section(1) of section 7;

(h) ͞micro enterprise͟ means an enterprise classified as such under sub-clause (i) of clause (a) or sub-
clause (i) of clause (b) of sub-section (1) of section 7

(i) ͞National Bank͟ means the National Bank for Agriculture and Rural Development
established
(ii) 61 of 1981 2 of 1934 1 of 1956 1 of 1956 39 of 1989
(iii) under section 3 of the National Bank for Agriculture and Rural Development Act, 1981;
(iv) (j) ͞notification͟ means a notification published in the Official Gazette;
(v) (k) ͞prescribed͟ means prescribed by rules made under this Act;
(vi) (l) ͞Reserve Bank͟ means the Reserve Bank of India constituted under section 3 of the
Reserve Bank of India Act, 1934;
(vii) (m) ͞small enterprise͟ means an enterprise classified as such under sub-clause (ii) of clause
(a) or sub-clause (ii) of clause (b) of sub-section (1) of section 7;
(viii) (n) ͞supplier͟ means a micro or small enterprise, which has filed a memorandum with the
authority referred to in clause (a) of sub-section (1) of section 8, and includes,
(ix) (i)
(x) the National Small Industries Corporation, being a company, registered under the
Companies Act, 1956;
(xi) (ii)
(xii) the Small Industries Development Corporation of a State or a Union territory, by whatever
name called, being a company registered under the Companies Act, 1956;
(xiii) (iii)
(xiv) any company, cooperative society, society, trust or a body, by whatever name called,
registered or constituted under any law for the time being in force and engaged in selling
goods produced by micro or small enterprises and rendering services which are provided by
such enterprises;
(xv)
(xvi) (o) ͞Small Industries Bank͟ means the Small Industries Development Bank of India
established under sub-section (1) of section 3 of the Small Industries Development Bank of
India Act, 1989;
(xvii) (p) ͞State Government͟, in relation to a Union territory, means the Administrator thereof
appointed under article 239 of the Constitution.
(xviii)
(xix)
(xx) CHAPTER II
(xxi)
(xxii) NATIONAL BOARD FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(xxiii)
(xxiv)
(xxv) 3. (1) With effect from such date as the Central Government ma
(xxvi) , b
(xxvii) Noti
for the purposes of this Act, a Board to be known as the National Board for Micro, Small and
Medium Enterprises.
(2) The head office of the Board shall be at Delhi
(3) The Board shall consist of the following members, namely:-

(a) the Minister in charge of the Ministry or De

artment of the Central Government havin

(b) the Minister of State or a Deputy Minister, if any, in the Ministry or Department of the
Central
(c) six Ministers of the State Governments having administrative control of the departments
of small
(d) three members of Parliament of whom two shall be elected by the House of the People
and one by the Council of States;
(e) the Administrator of a Union territory to be appointed by the Central Government, ex
officio;
(f) the Secretary to the Government of India in charge of the Ministry or Department of the
(g) four Secretaries to the Government of India, to represent the Ministries of the Central
(h) the Chairman of the Board of Directors of the National Bank, ex officio
;

(i)
the chairman and managing director of the Board of Directors of the Small Industries Bank,

ex officio
; the chairman and managing director of the Board of Directors of the Small Industries Bank,

ex officio
;

(j)
the chairman, Indian Banks Association, ex officio;
(k)
one officer of the Reserve Bank, not below the rank of an Executive Director, to be
appointed by the Central Government to represent the Reserve Bank;
(l)
twenty persons to represent the associations of micro, small and medium enterprises,
including not less than three persons representing associations of women's enterprises and
not less than three persons representing associations of micro enterprises, to be appointed
by the Central Government;
(m)
three persons of eminence, one each from the fields of economics, industry and science and
technology, not less than one of whom shall be a woman, to be appointed by the Central
Government;
(n)
two representatives of Central Trade Union Organisation, to be appointed by the Central
Government; and
(o)
one officer not below the rank of Joint Secretary to the Government of India in the Ministry
or Department of the Central Government having administrative control of the small and
medium enterprises to be appointed by the Central Government, who shall be the Member-
Secretary of the Board, ex officio

4. The term of office of the members of the Board, other than ex officio members of the
Board, the manner of filling vacancies, and the procedure to be followed in the discharge of
their functions by the members of the Board, shall be such as may be prescribed; Provided
that the term of office of an ex officio member of the Board, shall continue so long as he
holds the office by virtue of which he is such a member.
Removal of member from Board.
5. No act or proceedings of the Board shall be invalid merely by reason of- (a) any vacancy
in, or any defect in the constitution of, the Board; or
(b) any defect in the appointment of a person acting as a member of the Board; or
(c)
any irregularity in the procedure of the Board not affecting the merits of the case.
c)
any irregularity in the procedure of the Board not affecting the merits of the case.

6. The Board shall meet at least once in every three months in a year.
Powers and functions of Member-Secretary of Board
7. The Board may associate with itself, in such manner and for such purposes as it may
deem necessary, any person or persons whose assistance or advice it may desire in
complying with any of the provisions of this Act and a person so associated shall have the
right to take part in the discussions of the Board relevant to the purposes for which he has
been associated but shall not have the right to vote.

8. Without prejudice to sub-section (7) the Chairperson of the Board shall, for not less
than two of the meetings of the Board in a year, invite such Ministers of the State
Governments having administrative control of the departments of small scale industries or,
as the case may be, the micro, small and medium enterprises, or the Administrators of
Union territories and representatives of such other associations of micro, small and medium
enterprises, as he may deem necessary for carrying out the purposes of this Act.

9. It is hereby declared that the office of member of the Board shall not disqualify its
holder for being chosen as, or for being, a member of either House of Parliament.

4. 1) The Central Government may remove a member of the Board from it, if he (a)
is, or at any time has been, adjudged as insolvent; or
(b)
is, or becomes, of unsound mind and stands so declared by a competent court; or
(c)
refuses to act or becomes incapable of acting as a member of the Board ; or
(d)
has been convicted of an offence which, in the opinion of the Central Government, involves
moral turpitude; or
(e)
has so abused, in the opinion of the Central Government, his position as a member of the
Board as to render his continuance in the Board detrimental to the interests of the general
public
 2) Notwithstanding anything contained in sub-section (1), no member shall be removed
from his office on the
rounds s
ecified in clauses (c) to (e) of that sub-section
unless he has been given a reasonable opportunity of being heard in the matter.
5. The Board shall, subject to the general directions of the Central Government, perform
all or any of the following functions, namely:- (a)
examine the factors affecting the promotion and development of micro, small and medium
enterprises and review the policies and programmes of the Central Government in regard to
facilitating the promotion and development and enhancing the competitiveness of such
enterprises and the impact thereof on such enterprises;
(b)
make recommendations on matters referred to in clause (a) or on any other matter referred
to it by the Central Government which, in the opinion of that Government, is necessary or
expedient for facilitating the promotion and development and enhancing the
competitiveness of the micro, small and medium enterprises; and
(c)
advise the Central Government on the use of the Fund or Funds constituted under section
12.

6. Subject to other provisions of this Act, the Member-Secretary of the Board shall
exercise such powers and perform such functions as may be prescribed.

CHAPTER III

CLASSIFICATION OF ENTERPRISES, ADVISORY COMMITEE AND MEMORANDUM OF MICRO,

SMALL AND MEDIUM ENTERPRISES

Classification of enterprises.
65 of 1951 65 of 1951
7. 1) Notwithstanding anything contained in section 11B of the Industries (Development and
Regulation) Act, 1951, the Central Government may, for the purposes of this Act, by
notification and having regard to the provisions of sub-sections (4) and (5), classify any class
or classes of enterprises, whether proprietorship, Hindu undivided family, association of
persons, co-operative society, partnership firm, company or undertaking, by whatever name
called, - (a) in the case of the enterprises engaged in the manufacture or production of
goods pertaining to any industry specified in the first schedule to the Industries
(Development and Regulation) Act, 1951, as
MICRO SMALL AND MEDIUM
ENTERPRISESENTERPRISES

Group 7

Anup Kumar Rathi

.Hema Prabha S

Himani Sharma

Manish Gupta

Shivam Rastogi

Shruti Shrinivas

Vijayendra Rao

Vishal Singh