MSME Sector

Classification

• Both labour or technology intensive

• MSMED Act 2006 – both manufacturing &
service units
• Micro, Small & Medium.
 Old classification -Investment Criterion

Units Manufacturing Service

Micro Ceiling of 25 lakh Ceiling of 10 lakh
Small 25 lakh to 5 Cr. 10 lakh to 2 Cr.
Medium 5Cr. To 10 Cr. 2Cr. To 05 Cr.
New classification
 Some data

• NSS – 73RD Round – 633 lakh non- agricultural

MSMEs.
• 4th All India Census of MSME (2006-07)
• Annual Report – 28% to GDP
• 11 Cr. Jobs
• 34% share in exports
 States to look for
• Gujarat
• Maharashtra
• West Bengal
• Tamil Nadu

• 55% of them are registered in rural areas.

https://www.youtube.com/watch?v=hpNferrUTv0
• https://www.zeebiz.com/union-budget/news-b
udget-2023-vivad-se-vishwas-2-scheme-dispute
-resolution-scheme-what-is-it-latest-update-ne
ws-219953
• https://www.smefinanceforum.org/data-sites/
msme-country-indicators
• https://www.smefinanceforum.org/sites/defa
ult/files/analysis%20note.pdf
 Vivad Se Vishwas scheme
• The Vivad Se Vishwas scheme provides for the
settlement of disputed tax, disputed interests,
disputed penalty or disputed fees in relation
to an assessment or reassessment order on
payment of 100 per cent of the disputed tax
and 25 per cent of the disputed penalty or
interest or fee.
•The revamped credit guarantee scheme will take effect from
April 1, 2023 through infusion of Rs 9,000 crore in the
corpus. This will enable additional collateral free loans.
•The Vivad se Vishwas is proposed that the government
and government undertakings will return 95% of forfeited
amount related to the bid or performance security in case of
failure for MSME to execute contracts .
Q. Do a SWOT analysis of the MSME sector.
Q. MSMES and their challenges in the context of
globalization
 Role/Significance of MSMEs
• Contribution to GDP
• Employment Generation
• Regional Equality
• Equitable Distribution of Income and Inclusive
Growth
• Exports
 Challenges/Problems of MSMEs
• Inadequacy of finance
• Industrial sickness
• External competition
• Infrastructural constraints
• Technological constraints
• Marketing problems
Govt. Schemes for MSMEs
 Policy Initiatives:

• PMEGP (Prime Minister’s Employment Generation Programme),

• CGTMSE (Credit Guarantee Trust Fund for Micro and Small
Enterprises)
• (CLCSS (Credit Linked Capital Subsidy Scheme) for Technology
Upgradation,
• SFURTI (Scheme of Fund for Regeneration of Traditional
Industries), and
• MSECDP (Micro and Small Enterprises-Cluster Development
Programme)
• UAM (Udyog Aadhar Memorandum)
• ASPIRE (Promoting Innovation and Rural Entrepreneurs)