Micro, Small and Medium Enterprises (MSME)
- April 28, 2018
- Posted by: RSIS
- Category: Management
International Journal of Research and Scientific Innovation (IJRSI) | Volume V, Issue IV, April 2018 | ISSN 2321–2705
Micro, Small and Medium Enterprises (MSME)
Laveena Vaz, Akshay Damani
Pacific University, Udaipur, Rajasthan, India
MSME is one of the emerging sector in India over the last 5 decades. It not only provides employment to the backward and rural areas but also helps in the growth of the economy at lower capital compared to the large industries. MSME helps in equitable distribution of national income and wealth by socio-economic development of the country.
It contributes nearly 8% of GDP, 40% of the exports and 45% of the total manufacturing output. MSMEs produce wide and diverse range of products to meet the needs of not only of local markets but also global and international market.
The MSMED (Micro; Small and Medium Enterprises Development Act was issued in 2006 to address the problems or hassles faced by the MSMEs. The Act also notifies tthe coverage and investment ceiling MSME. The main purpose of the act is to develop these enterprises and also increase their competitiveness. The Act defines the scope and role of Micro, Small & Medium enterprises which comprises both service entities and manufacturing entities.
It also has the establishment of funds for the developmnet, promotion and enhancement of the competitiveness of these enterprises. The act has effective mechanisms for solving or mitigating the issues of delayed payments to Small and micro enterprises. It also has a statutory consultation mechanism at the national level.
The ministry of Small Scale Industries and the Ministry of the Agro and Rural Industries were merged to become the Ministry of micro, Small and Medium Enterprises on 9th May 2007. The Ministry designs programmes, projects, policies and schemes for the development of the MSMEs and helps them to progress by monitoring their schemes and policies. The main work of enhancement and development of MSME is the work of the State Government. However the central government supplements the efforts of the state government through various schemes.
