An MSME (Micro, Small and Medium Enterprise) is defined by RBI/GOI differently for the Manufacturing and the Services Sector, as follows:
* Manufacturing Sector: Manufacturing sector refers to enterprises engaged in manufacture or production, processing or preservation of goods. The definition of Micro, Small and Medium Enterprises under the manufacturing sector is as below: |
| * A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs.25 lakh; |
| * A small enterprise is an enterprise where the investment in plant and machinery is more than Rs.25 lakh but does not exceed Rs.5 crore; and |
| * A medium enterprise is an ...view middle of the document...
SMEs that have strong technological base, innovative, inventive, international business outlook, competitive spirit and willingness to restructure them can withstand the Present challenges and come out successfully to contribute 22% to GDP.The Micro, Small and Medium Enterprises (MSME) sector has been recognised as engine of growth all over the world. Many countries of the world have established a SME Development Agency as the nodal agency to coordinate and oversee all Government interventions in respect of the development of this sector. In the case of India, also Medium establishment has for the first time been defined in terms of separate Act, governing promotion and development of Micro, Small and Medium Enterprises (MSME) i.e. Micro, Small and Medium Enterprises (MSME) development Act, 2006 (which has come into force from 02nd Oct, 2006) the Office of Development Commissioner (Micro, Small and Medium Enterprises) functions as the nodal Development Agency under the Ministry of Micro, Small and Medium Enterprises (MSME).Consequent to the increased globalization of the Indian economy, MSMEs are required to face new challenges. Office of the Development Commissioner (MSME) has recognised the changed environment and is currently focusing on providing support in the fields of credit, marketing, technology and infrastructure to MSMEs. Global trends and national developments have accentuated Office of the Development Commissioner (MSME)'s role as a catalyst of growth of MSMEs in the country.MSMED Act was notified in 2006 to address policy issues affecting MSME’s as well as the coverage and investment ceiling of the sector. The salient features of the Act include: * Setting up of National Board for MSMEs; * Classification of enterprises; * Advisory Committees to support MSMEs; * Measures for promotion, development and enhancement of MSMEs; * Schemes to control delayed payments to MSMEs; * Enactment of rules by State Governments to implement the MSMED Act, 2006, in their respective states; * Examine the factors affecting the promotion and development of micro, small and medium enterprises and review the policies and programmes of the Central Government in this direction; * Make recommendations for facilitating promotion and development of and enhancing the competitiveness of the micro, small and medium enterprises; * Advice the Central Government on use of the Fund or Funds constituted under Section 12 of the Act.As per available statistics (4th Census of MSME Sector), this sector employs an estimated 59.7 million persons spread over 26.1 million enterprises. It is estimated that in terms of value, MSME sector accounts for about 45% of the manufacturing output and around 40% of the total export of the country. The Ministry of Micro, Small and Medium Enterprises (MoMSME) promotes the development of micro and small enterprises in the country with the objective of creating self-employment opportunities and upgrading the relevant...