SYNOPSIS

G. SUSHITHA

Title: A STUDY ON INDUSTRIAL DIFFERENCES BETWEEN INDUSTRIAL

SCHEMES TO REFERENCE MICRO, SMALL & MEDIUM ENTERPRISES (MSME)

Abstract

The Micro, Small and Medium Enterprises (MSME) sector is an important pillar of the Indian
economy by way for creating employment for about 73 million persons through 31 million units,
manufacturing more than 6,000 products, contributing about 44% to manufacturing output and
about 40% of exports, directly and indirectly. The Small Industries Development Bank of India
(SIDBI) is as an apex and the principal financial institution for promotion, financing and
development of the Micro, Small and Medium Enterprises (MSME) sector and thus coordinates
of the functions of other institutions engaged in similar activities. The SIDBI at the apex level
supports the MSME sector to gain the needed strength and has introduced various schemes and
initiatives to meet the varied needs of the sector. Hence in the present paper there is a detail
study of various schemes which are provided by SIDBI for the development of MSMEs.

1. INTRODUCTION OF THE STUDY

In India, MSMEs contribute almost 8% of the nation's GDP, around 45% of the manufacturing
yield, and roughly 40% of the nation's exports and it also provides 11 crore employment.
Henceforth it is known as the ‘Backbone of the country'. The Government of India has presented
MSMES or Micro, Small, and Medium Enterprises in agreement with the Micro, Small, and
Medium Enterprises Development (MSMESD) Act of 2006. These endeavours principally
occupied the creation, assembling, handling, or protection of products and commodities. MSMEs
are a significant area of the Indian economy and have contributed massively to the country's
financial turn of events. It produces business open doors as well as works connected at the hip
towards the improvement of the country's backward and rural areas. As indicated by the yearly
report by the Government (2018-19), there are around 6,08,41,245 MSMEs in India. Any person
who needs to launch his business or as of now possesses one yet that goes under Micro, Small,
and Medium Enterprises (MSMEs an profit from the advantages of the credit offices. According
to the most recent declaration in July 2020 concerning rethinking the MSMEs, a Table is
displayed that reclassifies the freshest meaning of Micro, Small, and Medium Enterprises

2. NEED OF THE STUDY

The study may help the government to understand how far small scale entrepreneurs are aware of
the schemes promoted by it. Thereby, Government can use the results of this survey for policy
research and designing appropriate strategies and measures for creating awareness, to assist
and enable these enterprises in facing the challenges and availing of the opportunities
with a view to enhancing their efficiency and competitiveness. Furthermore, the research work
assists SMEs to understand the schemes offered by the Government and to utilize the same to a
maximum extent

3. SCOPE OF THE STUDY

 Guarantee on credits for loans up to INR 2 crores, without third-party guarantee and
collateral.
 Guarantee on coverages range from 75% (others) to 85% (Micro Enterprise up to INR 5
lakh).
 50% of the coverage is for retail activity.
 Third-party/ collateral guarantee free credit facilitation by eligible institutions with
maximum credit capped at INR 200 lakhs qualify for guarantee under the scheme. Lately,
guarantee coverage has been made eligible for selected Small Finance banks and NBFCs.
 Guarantee cover extends to 50%/ 75% / 80% & 85% of the sanctioned amount of the
credit facility. The extent of guarantee cover is 85% for micro-enterprises for credit up to
Rs. 5 lakhs. The extent of the guarantee covers 50% for credit ranging from INR 10 lakh
to INR 100 Lakh per micro and small enterprise borrower retail trade activity.
 Extent of guarantee cover is 80% for both MSMEs owned/operated by women and
loans/credits in the North East Region for credits up to INR 50 lakhs. In cases of default,
the trust settles 75% of the amount extended by the lending institutions for credits up to
INR 200 lakhs.
4. OBJECTIVES OF THE STUDY
 To find how MSMESs and start-ups contribute to the development of our country.
  To know the scheme framed by the government under the MSMES sector.
 To review the different issues looked at by MSMES in India

5. RESEARCH METHODOLOGY

Traditional examples of industrial policy include subsidizing export industries and import-
substitution-industrialization (ISI), where trade barriers are temporarily imposed on some key
sectors, such as manufacturing.

Tools & Data Collection Techniques:

Assets of data - After defining the have a look at questions and growing the research design
plan, the task of statistics amassing started out. Both number one and secondary data were
gathered with a view to construct this challenge report.

Primary Data: Data accumulated from original assets are considered primary records. It is first
accumulated by means of a research agency that makes use of the information for the primary
time.

Here, employees are the key information vendors. Employee personnel interviews are
accompanied by questionnaires to gather the important thing facts. In order to get the vital facts
on points, a trendy set of questions is installed. Primary information are those which are in the
beginning acquired, are of an original nature, and consist of direct commentary or
communication. Visits to the enterprise are used to collect the vital data.

Secondary Data:

Some secondary sources had been used to assemble this information. This statistics may be in
both public and unpublished shape. This facts become accrued from the business enterprise's
annual document and the internet. The secondary information resources are: Trade publications
and periodicals books and newspapers.

Tools :

Pie charts, percent analysis, questionnaire surveys, SPSS Excel, and

6. LIMTATIONS OF THE STUDY
 Today, MSMEs contribute up to 30% of the country's GDP.
 It plays a vital role in the industrialisation of the rural sector in cost-efficient ways.
 MSMEs also have a significant role in providing employment opportunities and exports.
 One of the primary reasons for this is the lack of collateral or credit history.
 A bad credit score can make it difficult for these enterprises to obtain loans.
 MSMEs also face challenges in accessing credit due to high interest rates, complex
documentation requirements and long processing times.
7. CHAPTERIZATION

• Abstract

• Chapter I - Introduction

• Chapter II – Review of Literature

• Chapter III – Research Methodology

• Chapter IV – Theoretical Framework

• Chapter V – Company Profile

• Chapter VI – Research Data Analysis and Interpretation

• Chapter VII – Findings and Conclusions

• Chapter VIII - Suggestions and Recommendations

• Bibliography.