The MSMEs (micro, small and medium enterprises) in India contribute a major role in the Indian economy. This sector has gained a significant place in the Indian economy as we know that the MSMEs contribute the largest share of the Indian GDP. MSMEs are the backbone of the Indian economy. This sector has contributed to the development of entrepreneurship under the MSMEs.
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After the introduction of MSMEs under the MSME act 2006, these enterprises are categorized into two classes i.e. manufacturing sector and the services sector. And further categories are based on the investment in plants and on machinery and annual turnover.
According to the data from the ministry of MSMEs India has more than 6.3 crore MSMEs as of 26 Nov 2021 there are 5767734 registered MSMEs on the Udyam registration web portal, here on replacing the former form filling process on Udyog aadhar memorandum, there are about 5441220 registered MSMEs under the micro-enterprises which about 94.34 %, it is followed by the small enterprises which are 293555 means 5.09% registered enterprises under the Small enterprises, and it is followed by the 32959 registered enterprises under the Medium enterprise registration which is 0.57 %. As of 26 Nov, 2021 among the top five states wise Udyam registered enterprises those areas are Maharashtra, Tamil Nadu, Gujrat, Rajasthan, and Uttar Pradesh, Registered enterprises under the Udyam registration portal are 12.18 lakh units, 6.23 lakhs units, 4.86 lakhs units, 4.68 lakhs units, and 4.45 lakh units respectively. As we know the new process of registration on the Udyam registration portal there are 5.57 million enterprises under the MSMEs registered till Nov 2021. and this MSMEs sector contributes nearly 30 % of Indian GDP through India and the foreign countries’ trade.
The platform which is BSE SME ( small and medium enterprises ) is expected to enter more than 60 SMEs in the Indian market in the financial year 2021-2022 to boost equity funds to meet their business necessities. Through the IPO ( Initial public offering) it witnessed 16 SMEs enter the Indian market and they have raised Rs100 Crore equity in 2020. In the month of June 2021, an announcement was made by the Bombay stock exchange that it has already collaborated with the Electronics and computer software export promotion council (ESC) to make awareness among small-scale businesses and startups.
Micro, Small, and Medium enterprises are being encouraged in the market through their products on the e-commerce site, especially, mainly through the GeM(Government e-marketplace), which is owned and run by the government. A bit about the GeM, as on November 2021 the Gem web portal offered 8.16 million orders which are worth Rs 159483 Crore from the 3.1 million registered sellers and the service providers.
A strong financial stimulus is needed for the domestic business with the concessional working capital loans so that it could ensure the liquidity in the business activities from the financial and government institutions.
As per the current scenario, the MSMEs (micro, small and medium enterprises) are using the digital payment method over the case transaction. You will be surprised to know that 72 percent of payments are done through the digital method and 28 percent are made through the on case payments. This digital payment method will boost further growth in this sector.
Know all about the statutory body:
Here the MSMEs have four statutory bodies namely the khadi and VILLAGE industry commission ( KVIC) which is mainly responsible for promoting the khadi and VILLAGE industries to provide them employment opportunities in rural regions that will strengthen the rural economy, ‘ coir board in charge of promoting whole development in the coir industries sector and also it improves the living conditions of the workers who are under the industry, national small industry corporation limited ( NSIC) who is responsible for aiding, fostering and promoting the micro-small enterprises in India, ‘national institute for micro, small and medium enterprises( NI-MSME) works for the development of entrepreneurship and enable enterprise creation and also performs to diagnostic development studies for policy formulation. And at last, the mahatma Gandhi institute for rural Industrialisation is mainly responsible for celebrating the rural economy and attracting the experts to the gram swaraj, traditions, artisans, and it encourages the people to innovate.
Know the government policies towards the MSMEs
As we know our government has framed several policies for the development of MSMEs.
- The Indian government has launched the SCLC( Special Credit Linked Capital Subsidy Scheme) for the services sector, this will help the companies in the various way to meet their technology requirements
- Indian export initiatives and India exports 2021 portal were launched by the union finance minister to estimate normal site Raman.
- A national-level awareness pro 7 has been launched by the ministry of MSME named SAMBA, to boost economic growth by promoting domestic manufacturing and entrepreneurship.
- KVIC(Khadi and VILLAGE industry commission) was established, it is the first silk production center in Odisha to encourage the low silk industry and generate employment.
- Rohtak technology center is established by the finance minister to train the trainee which is more than 8400 in numbers annually
- KVIC( Khadi and Village Industry Commission) has launched the SPIN(Strengthening the potential of India) scheme where it builds the pottery cluster under the SFURTI scheme in the varamozhi to help more than 1100 individuals of the marginalized potter’s community.
- The Lok Sabha passed a bill on the ‘factoring regulation ( amendment)’ for expanding the payment system for the MSMEs.
Suggested Read- Udyam registration Portal
After Knowing the above we have an over idea about the expansion of MSMEs in India, along with this what are the key factors for the expansion and the schemes run by the government of India to operate the enterprises in the Indian market. I also learned how the digital payment mode helps the enterprises to boost their development and it manages to ease their business transactions. With these facts, I conclude my writing.