The MSME act that was established earlier contributes a lot towards the
betterment of the MSME sector India . The Indian MSME sector is one the
fastest and most efficient business sectors in the entire world. This
sector continuously shows an annual growth rate of approximately
20%. There are a wide range of factors that make this sector so unique
in contrast to the other sectors. The Government of India is very
forward looking in terms of the development of the MSME industry.
There is a lot of impetus given towards the setting up of various
schemes that benefit this sector and that ultimately helps in
progressing the Indian economy.
The Ministry of MSME constantly comes out with various innovative
policies about MSME sector. These schemes prove to be instrumental
in providing opportunities for the business owners of the MSME sector
as well as those people that are looking for employment opportunities
within this sector. It is very important for all the stakeholders to keep a
tab on the current trends in the global market as well as identifying the
drivers of demand in the domestic market and enabling the MSME
businesses to cater to and suffice that demand. There is an immediate
resurgence in the use of modern technology amongst the Indian MSME
businesses and as a result of which many international corporations are
also starting to notice the ways of operation of the MSMEs and the
product and services that are derived out of this sector.
Some the most interesting facts about this sector are as follows :
1.) This sector employs approximately 50% of the total workforce
numbering to about 8-10 Crore employees.
2.) Almost 80% of the Indian industrial outputs are manufactured by
the MSMEs that produce over 10,000 products.
3.) MSME businesses contribute roughly 40% of total exports and 50%
of domestic manufacturing.
4.) Approximately 60% of the MSMEs are located in the Indian rural
areas and 95% of its output is domestically consumed.
5.) Over 35% of the MSMEs have been in business for more than two
decades and about 1.22% units have been around for over five
decades.
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The MSME turnover limit 2022 have been requested to be raised to
Rs.100 Cr for businesses classifying as ‘small’ enterprises. As per the
existing classification of MSMEs, a unit is categorized as a small
enterprise if its investment in plant and machinery or equipment does
not exceed Rs 10 crore and the turnover is less than Rs 50 crore. It is
very important to raise this ceiling as the MSME sector contributes
almost 50% to exports and that amount has to further accelerate to
meet the rising demands from the market. This suggestion if
implemented accordingly will prove to be very beneficial for boosting
the entire MSME sector. Therefore, the improvement in the MSME
turnover limit 2022 is of utmost importance at the moment.
The MSME sector is one of the country & major employers across
diverse fields. Setting up an MSME would provide owners with a job,
helping them avoid hunting for jobs elsewhere. It also enables them to
create employment opportunities for others that are interested to work
in this sector. The MSME sector India has been instrumental in generating
employment opportunities in rural and remote areas of the country. As
per the data from the Udyam Portal of the Ministry of MSMEs,
93,94,957 people were employed by MSMEs registered on the portal in
FY 2022.
One of the most useful lending schemes for the MSMEs have been
introduced this year. The MSME loan scheme 2022 is a well planned
and executed scheme that was established by the Ministry of MSME
along with the support of the top financial institutions in the country.
All the major banks and lending institutions moved a step forward to
lend a helping hand towards the growth of the MSME sector India by
providing various loans schemes that could be used by the MSME
business owners for their further development of the business.
The following are some of the different types of loans that can be
availed by the MSMEs :
1.) MSME Business Loan : The rate of interest is 8% per annum.
However, for women entrepreneurs, it is 3% per annum. The loan
processing is generally 8-12 days depending on the accuracy and
successful verification of the documents.
2.) Credit Guarantee Fund Scheme : Under Scheme, an MSME can get a
loan up to Rs. 10 lakh without providing any collateral security.
The credit facilities are the minimum and maximum Rs. 10 lakh and Rs.
1 crore respectively.
3.) MUDRA Loan : The full form of MUDRA is Micro Units Development
and Refinance Agency. The following are the different loan scheme
offers : a) Sishu Loans: Rs.50,000 b) Kishor Loans: Rs.5,00,000 c) Tarun
Loans: Rs.10,00,000.
4.) Credit Link Capital Subsidy Scheme: The aforesaid scheme also offers
a capital subsidy of 15% per annum to eligible businesses.
The maximum loan limit under the said scheme is Rs. 15 lakh.
5.) National Small Industries Corporation Subsidy : This subsidy can opt
for the assistance of raw material scheme where the business can
generate funds for the indigenous cost and imported raw material
needed for the businesses.
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Considering the importance of the MSME sector India in the socio-economic
development of India, the government has announced several reforms
to grow the sector and promote exports. The MSME act was passed in
2006 that categorized the industries into manufacturing and services
and further classified the sector based on the size into Medium, Micro
and Small enterprises. The Prime Minister Employment Generation
Programme was a very useful one. The Credit Guarantee Scheme for
Micro and Small Enterprises provide financial assistance to small
businesses. The MSME contribution to GDP and the MSME contribution
to employment is intertwined very deeply and this relationship is
reinforced with time as the sector reaches newer heights and the
Indian economy makes its mark as a top leader in the global landscape.