MSME | Industrial Growth | Indian Economy

MSME - UK sinha committee

The MSME definition

• The Micro Small & Medium Enterprises (MSMEs) are defined under the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 on the basis of capital investment made in plant and machinery, excluding investments in land and building
• Manufacturing Unit below 25 Lacs as MICRO, btwn 25 to 5 cr as SMALL and above 5 to 10 cr as Medium
• Service Unit below 10 Lacs as MICRO, btwn 10 to 2 cr as SMALL and above 2 to 5 cr as Medium

However, the government is contemplating to change the definition of MSMEs. 

• Annual TO should be criteria rather than investment size
• No diff btwn Manufacturing and Service industry.
• TO of 5 (Micro), 25 (Small) and 250 (Medium).

SIDBI

Small Industries Development Bank of India (SIDBI), set up on 2nd April 1990, under an Act of Indian Parliament, acts as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector as well as for coordination of functions of institutions engaged in similar activities.

PMMY

• The PMMY is a scheme launched in 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises.
• These loans are classified as MUDRA loans under PMMY and there is MUDRA bank.
• These loans are given by Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs and NBFCs.
• Under the aegis of PMMY, MUDRA has created three products namely 'Shishu', 'Kishore' and 'Tarun' to signify the stage funding needs of the beneficiary/entrepreneur and also provide a reference point for the next phase of graduation/growth. 
  • Sishu - Upto 50K
  • Kishore - 50K to 5L
  • Tarun - 5L to 10L

    PHD Chamber of Commerce and Industry in association with the Ministry of Science and Technology has released the Industry-University Index assessing input-output relations between the education sector (Universities) and industries.

    India is at very nascent age with moderate score of 4.7 out of 10. Karnataka, Kerala n Gujrat has topped the list with 7.8, 7.3 n 6.7 respectively.

    This is due to India has no clear policy of linkage of industry n University. Bay dole model act 1980 if US should be adopted.

* Initiatives/Schemes to Promote Technology in Textile Production-

SAATHI Initiative:, Amended Technology Upgradation Fund Scheme for textiles industry (ATUFS), Integrated Skill Development Scheme (ISDS), Power Tex India:, Scheme for Integrated Textile Parks (SITP)

* PHD Chamber of Commerce and Industry in association with the Ministry of Science and Technology has released the "Industry-University Index" assessing input-output relations between the education sector (Universities) and industries.

India is at very nascent age with moderate score of 4.7 out of 10. Karnataka, Kerala n Gujrat has topped the list with 7.8, 7.3 n 6.7 respectively.

This is due to India has no clear policy of linkage of industry n University. Bay dole model act 1980 if US should be adopted.

* Household consumer expenditure survey of 2017-18 released by NSSO every 5 years (under min of MoSPI). It also releases reports on larger picture such as health, education etc.

NSSO and CSO (publishes macro economic data such as financial data (GDP) and inflation etc) got merged in 2019.

This report is withheld by govt saying it has data quality issue.earlier same thing was done with unemployment data report as well.

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