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Promotional Role of Government of India PDF
Promotional Role of Government of India PDF
Entrepreneurship was potential to support economic growth and social cohesion, it is the policy
goal of many governments to develop a culture of entrepreneurial thinking. This can be done in a
number of ways: by integrating entrepreneurship into education systems, legislating to encourage
risk-taking, and national campaigns
FINANCIAL ASSISTANCE
Financial assistance is available from institutions such as Nationalised Banks, Small Industries
Development Bank of India, Regional Rural Banks, National Small Industries Corporation, State
Financial Corporations etc. Financial assistance has two components. Loan for fixed capital is
used to acquire Plant and Machinery, land and building. Working capital loan is used to meet day
to day operational cost of the production. State Financial Corporation and National Small
Industries Corporation generally provide working capital. However under a package assistance,
State Financial Corporations also provide a composite loan covering plant and machinery and
working capital.
Eligibility criteria
Technical /Economic viability
Promoters contribution
Capacity to repay loan
Collateral securities/guarantee
ii) To advise on business planning, marketing and accountancy, quality control and
assurance;
iii) To create incubator units providing the space and infrastructure for business
beginners and innovative companies, and helping them to solve technological problems, and to
search for know-how and promote innovation; and
iv) To help in looking for partners. In order to stimulate entrepreneurship and improve
the business environment for small enterprises.
Training
Basic training differs from product to product but will necessary involve sharpening of
entrepreneurial skills. Need based technical training is provided by the Govt. & State Govt.
technical Institutions.
There are a number of Government organisations as well as NGOs who conduct EDPs and
MDPs. These EDPs and MDPs and are conducted by MSME's, NIESBUD, NSIC, IIE, NISIET,
Entrepreneurship Development Institutes and other state government developmental agencies.
Promotional Schemes
Government accords the highest preference to development of MSME by framing and
implementing suitable policies and promotional schemes. Besides providing developed land and
sheds to the entrepreneurs on actual cost basis with appropriate infrastructure, special schemes
have been designed for specific purposes like quality upgradation, common facilities,
entrepreneurship development and consultancy services at nominal charges.
Government of India has been executing the incentive scheme for providing reimbursement of
charges for acquiring ISO 9000 certification to the extent of 75% of the cost subject to a
maximum of Rs. 75,000/- in each case. ISO 9000 is a mechanism to facilitate adoption of
consistent management practices and production technique as decided by the entrepreneur
himself. This facilitates achievement of desired level of quality while keeping check on
production process and management of the enterprise.
MSME units with a turnover of Rs. 1 crore or less per year have been exempted from payment of
Excise Duty. Moreover there is a general scheme of excise exemption for MSME brought out by
the Ministry of Finance which covers most of the items. Under this, units having turnover of less
than Rs. 3 crores are eligible for concessional rate of Excise Duty. Moreover, there is an
exemption from Excise Duty for MSME units producing branded goods in rural areas
Credit Facility To MSME
Credit to micro, small and medium scale sector has been covered under priority sector lending by
banks. Small Industries Development Bank of India (SIDBI) has been established as the apex
institution for financing the MSME. Specific schemes have been designed for implementation
through SIDBI, SFCs, Scheduled Banks, SIDCs and NSIC etc. Loans upto Rs. 5 lakhs are made
available by the banks without insisting on collaterals. Further Credit Guarantee Fund for micro,
small and medium enterprises has been set up to provide guarantee for loans to MSME up to Rs.
25 lakhs extended by Commercial Banks and some Regional Rural Bank.
_ Expand the scope and coverage of technology development and modernisation scheme
_ Introduce standards for testing
_ Efforts to introduce utility patent protection for small innovations
(h) Marketing:
Extend comprehensive marketing support through:
_ Project subcontracting promotion policy
_ Vendor development programme for linkages between small, medium and large industry
_ Thrust on rural marketing
_ Comprehensive policy for investment marketing brand promotion and overseas market access
(i) Fiscal regime:
Create an appropriate fiscal environment through:
_ Rationalization of taxes and tariffs for small-scale industries
_ Rationalization of subsidies to make them WTO compatible
_ Organize WTO sensitization programmes for small-scale industries
(j) Village industries:
Focus through:
_ Strengthening Prime Ministers Rozgar Yojna and Rural Employment Generation Programme;
_ Strengthening National Rural Industries Programme;
_ Strengthening rural artisan complexes;
_ Modernization and capacity building in village industries;
_ Special thrust on small agro-industries.
(k) Infrastructure:
Bridge critical infrastructure gaps through:
_ Strengthening National Cluster Development Programme, including identification of critical
infrastructure gaps on cluster basis;
_ Functional industrial parks.
(l) Entrepreneurship development:
Strengthening National Entrepreneurship Development Board:
_ Comprehensive plan for promotion of rural entrepreneurship
_ Close linkages with premier institutions, engaged in management and entrepreneurial training
_ Adoption of turn-key concept for entrepreneurship training
(m) International cooperation:
Strengthen bilateral and international cooperation through:
_ Separate cell in the Ministry for International Cooperation and joint ventures
_ Sector specific development programmes with the assistance of UNIDO and UNDP
(n) Information technology:
Strengthen IT support:
_ Master web site on small industries comprising information on policies and procedures,
technology,
products, etc. with hyperlinks to states and countries;
_ Comprehensive plan for preparing small-scale industries for e-commerce, with appropriate
electronic
infrastructure support._ SME partenariat with various international and multilateral organizations
4. Industry promotion policies
(a) Policies classified according to specific promotional activities or
focus area:
_ EXIM policy (Central)
_ Civil aviation policy (Draft) (Central)
_ Entrepreneurship development (States)
_ Awards to meritorious entrepreneurs (States)
_ Consultancy services (States)
_ Environment and pollution control (States)
_ Export promotion policy (States)
_ FDI and NRI (Central and States)
_ Financial infrastructure and services (States)
_ Foreign investment policy (Central)
_ Human resource development (States)
_ Industrial parks, complexes, estates, development (States)
_ Infrastructure policy (States)
_ Industrial policy (Central and States)
_ Information technology policy (Central and States)
_ Land allotment (States)
_ Labour laws and policy (States)
_ Monetary and credit policy, 2002-2003 (Central)
_ Natural resources and conservation (States)
_ Port policy (States)
_ Power policy (Central and States)
_ Procedure and clearance to set up units (States)
_ Public sector undertakings (States)
_ R&D improvement in productivity and quality upgradation (States)
_ Raw materials (States)
_ Small-scale, rural and cottage industries (Central and States)
_ Sick industries (Central and States)
_ Simplification and streamlining of rules and procedures and administration (States)
_ Single window (States)
_ Special economic zones (States)
_ Taxes (States)
_ Technology upgradation
_ Thrust areas (I)
_ Transport (Central and States)
_ Telecommunication (Central and States)
(b) Policies classified according to sector or industry:
_ National health policy (Central)
_ National water policy (Central)
_ Agro and food processing policy (States)
_ Biotechnology policy (States)
_ Education policy (Central and States)