International MSME Day

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International MSME Day

International MSME Day

Every year on 27th June, ‘Micro, Small and Medium-sized Enterprises -MSMEs Day’ is celebrated to emphasize the utility of Micro, Small and Medium-sized Enterprises in the implementation of Sustainable Development Goals- SDGs.

Key Points:

  • The Day of Micro, Small and Medium-sized Enterprises was designated by the United Nations in the year 2017 by passing a resolution in the United Nations General Assembly.
  • A program titled ‘Enhancing National Capacities for Unleashing Full Potentials of MSMEs in Achieving the SDGs in Developing Countries’ was launched in May
  • The program is funded by the 2030 Agenda for Sustainable Development sub-fund of the United Nations Peace and Development Fund. The United Nations objective is to identify and spread awareness about the Sustainable Development Goals by countries.
  • An International Business Center survey on the impact of the COVID pandemic among businesses in 136 countries found that about 62 percent of female-led small businesses have been affected by the Covid crisis, compared to the same for male-led businesses. While the number is less than half that, women-led businesses are 27% more likely to survive COVID-
  • MSMEs account for more than 90% of all firms, both formal and informal, with an average share of 70 percent in total employment and 50 percent in GDP, due to which they play an important role in achieving the status of ‘Green Recovery’.
  • The theme of International MSME Day for the year 2021 is “Key to an inclusive and sustainable recovery”.

Role of MSMEs in Indian Economy:

  • Micro, small and medium enterprises contribute about 30 percent of the country’s Gross Domestic Product (GDP). In this way ‘MSMEs’ play an important role in the development of Indian economy.
  • In the field of exports, they are an integral part of the supply chain and contribute about 48 per cent of the total exports of the country.
  • MSMEs also play an important role in employment generation and around 110 million people are employed from the MSME sector across the country.
  • It may be noted that ‘MSMEs’ are also linked to the rural economy and more than half of ‘MSMEs’ are employed in rural India.

Initiatives to Promote the ‘MSME’ Sector

  • The Ministry of Micro, Small and Medium Enterprises envisions a vibrant ‘MSME’ sector by promoting the growth and development of the ‘MSME’ sector including Khadi, Village and Industries.
  • The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs and the coverage and investment limits of the sector.
  • Prime Minister’s Employment Generation Program (PMEGP): It is a credit linked subsidy scheme which encourages setting up of new micro enterprises and generating employment opportunities in rural and urban areas of the country
  • Scheme of Fund for Regeneration of Traditional Industries (SFURTI): The objective of this scheme is to provide financial assistance for the organization of artisans and traditional industries in clusters and thus help them to become competitive in the current market scenario.
  • A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE): This scheme promotes innovation and rural entrepreneurship through ‘Fund of Funds for Startups in Agro-based Industry’, Rural Livelihoods Business Incubator, Technology Business Incubator.
  • Interest Subvention Scheme for Incremental credit to MSMEs: It was introduced by the Reserve Bank of India, providing relief of up to 2% to all statutory MSMEs on their outstanding, existing/incremental term loans/working capital during the period of their validity.
  • Credit Guarantee Scheme for Micro and Small Enterprises: Under this scheme launched to facilitate easy flow of credit, guarantee cover is provided for collateral free loans given to MSMEs.
  • Micro and Small Enterprises Cluster Development Program (MSE-CDP): It aims at enhancing the productivity and competitiveness of MSEs as well as capacity building.
  • Credit Linked Capital Subsidy – Technology Upgradation Scheme (CLCS-TUS) : Its main function is to facilitate technology upgradation to Micro and Small Enterprises (MSEs) by providing 15 percent capital subsidy for purchase of plant and machinery.
  • Champions Portal: It aims to help Indian MSMEs to establish themselves as national and global champions by resolving their grievances and providing them encouragement, support.
  • MSME SAMADHAN Portal: It enables direct filing of cases regarding delayed payments by Central Ministries, Departments, CPSEs, State Governments.
  • Enterprise Registration Portal: This new portal helps the government to collect data on the number of MSMEs in the country.
  • MSME Sambandh: This is a government procurement portal. It was launched to oversee the implementation of public procurement from MSEs by Central Public Sector Enterprises.

Source: The Hindu

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