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  • According To The Provisions of MSMED Act, 2006 The Micro, Small and Medium Enterprises (MSME) Are Classified in Two Classes: 1.manufacturing

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    1. The document discusses Micro, Small, and Medium Enterprises (MSMEs) in India, which account for 46 million enterprises, 45% of industrial production, and 106 million jobs. 2. MSMEs contribute significantly to the Indian economy, including 8% of GDP and 40% of exports. They produce a variety of goods and services and provide important employment opportunities. 3. While MSMEs play a vital role, they face challenges such as lack of access to credit, competition, inadequate infrastructure, and lack of skills training. The document outlines various government support programs and suggests ways to help MSMEs improve and overcome challenges.

    Original Description:

    Analysis

    Original Title

    MSMEs

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    1. The document discusses Micro, Small, and Medium Enterprises (MSMEs) in India, which account for 46 million enterprises, 45% of industrial production, and 106 million jobs. 2. MSMEs contribute significantly to the Indian economy, including 8% of GDP and 40% of exports. They produce a variety of goods and services and provide important employment opportunities. 3. While MSMEs play a vital role, they face challenges such as lack of access to credit, competition, inadequate infrastructure, and lack of skills training. The document outlines various government support programs and suggests ways to help MSMEs improve and overcome challenges.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    20 views15 pages

    According To The Provisions of MSMED Act, 2006 The Micro, Small and Medium Enterprises (MSME) Are Classified in Two Classes: 1.manufacturing

    Uploaded by

    Satyam
    1. The document discusses Micro, Small, and Medium Enterprises (MSMEs) in India, which account for 46 million enterprises, 45% of industrial production, and 106 million jobs. 2. MSMEs contribute significantly to the Indian economy, including 8% of GDP and 40% of exports. They produce a variety of goods and services and provide important employment opportunities. 3. While MSMEs play a vital role, they face challenges such as lack of access to credit, competition, inadequate infrastructure, and lack of skills training. The document outlines various government support programs and suggests ways to help MSMEs improve and overcome challenges.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 15

    Introduction

    According to the provisions of MSMED Act,


    2006 the Micro, Small and Medium Enterprises
    (MSME) are classified in two Classes:
    1.Manufacturing Enterprises

    2. Services Enterprises
    Enterprises
    Micro Enterprises

    Investment in equipment
    Does not exceed ten lakh rupees

    Small Enterprises

    More than ten lakh rupees but does


    not exceed two crore rupees

    Medium Enterprises

    More than two crore rupees but


    does not exceed five core rupees

    PERFORMANCE AND CONTRIBUTION OF


    MSMES.

    46 Million MSMEs

    45% industrial
    production

    MSMEs

    106 Million
    Employment

    40% Exports

    Contribution to the Economy

    More than 95% industrial units belong to MSMEs


    One of the biggest employment generating sector.
    Contributes 8% to the current GDP and 40% of the total
    export.
    Total output till financial year 2011-12 was 18 Lakh crores
    approx.

    Facts and Figures

    Works under the guidelines of MSMED Act,2006

    Current Minister of Micro, Small and Medium Enterprises


    isKalraj Mishra.

    46.1 million MSMEs in India of which 7.3 million are the


    manufacturing enterprises and 18.8 million service
    enterprises.

    Number of women and rural enterprises are 2.1 million and 14.2
    million respectively.

    1.
    2.

    3.

    4.

    At Central
    Level
    Ministry of
    MSMES.
    Small
    Industries
    Developme
    nt Bank of
    India.
    National
    Small
    Industries
    Corporation
    .
    Khadi and
    Village
    Industries
    Commission
    .

    Financial
    Support
    MSMES

    Others
    1. Industry
    Associations
    2. NGOS
    3. Banks/Financ
    ial
    Institutions.

    At State
    Level
    1. State
    Finance
    Corporation.
    2. Technical
    Consultancy
    Organisation
    s.
    3. State
    Industrial
    development
    Corporation.
    4. District
    Industries
    Centres.

    Advantages
    Plays a vital role in the
    economic and social
    development of the
    country.
    Produces a variety of
    products and services.
    The labour intensity of the MSME sector is very
    high.
    Provides employment at low capital cost.
    Helps in Industrialisation of rural and backward
    areas.
    Contributes enormously to the socioeconomic
    development of the country.

    BUDGET 2014 AND MSMES

    Rs 10,000 crores
    allocated to SMEs.
    Setting up of a
    Technology
    Development Fund
    with a corpus of Rs
    100 crore
    Proposes to form a committee to give concrete suggestions
    to the government on the wider issues affecting the
    operation of the MSMEs in India
    Liberalized the much-talked about FDI in the e-Commerce
    sector

    LENSKART - SUCCESS STORY

    Incepted in 2010, 300% increase in its turnover.

    Only dedicated e-retailer of eyeglasses, sunglasses and


    contact lenses.

    Strategies

    Word of mouth marketing

    Managing customer retention

    Use of social media platforms

    Prompt deliveries,

    14-days no-questions-asked return policy,

    Convenient payment options

    Unbeatable prices.

    MSMES TO TRANSFORM YOUTH

    State of the Urban Youth, India 2012: Employment,


    livelihood, skills a report published by IRIS knowledge
    Foundation in collaboration with UN-HABITAT

    The current workforce at the all India level is 47.2 crore.

    Contribution to growth, innovation and jobs

    Major drivers of innovation and employment.

    INTERNATIONAL
    COOPERATION
    PROGRAMME

    Provides exposure to MSMEs to the latest


    technologies, manufacturing practices
    prevalent in their fields in different countries.
    Encourages their participation in
    international exhibitions for exports.

    CHALLENGES

    Lack of credit from banks


    Competition from multinational companies
    Poor infrastructure
    Lack of distribution of marketing channels
    Lack of advanced technology
    Lack of training and skill development programs
    Capital Management
    - fails to factor in the opportunity cost
    - Penny wise pound foolish

    SUGGESTIONS FOR IMPROVEMENT


    Sufficient

    availability of the credit


    Training and development, awareness
    programs
    Proper research and development
    Determination of technological needs
    Constitution of a Panel of Consultants
    Relaxation in labor laws and red tape

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