MSME businesses are the most important business segment for a country
like India. Many of the businesses that are currently in their primary growth
stages are making sure that they fully avail the benefits of the MSME sector
by being active in the MSME ecosystem. It is already a known fact that
MSME businesses are at their foremost in terms of operation in the country.
These businesses have a frequent requirement of capital in order to run their
facilities. The Ministry of MSME has planned many schemes for the MSME
businesses in order to assist them in their overall growth and development.
A major part of that support is by facilitating good credit availability for the
MSME businesses. SIDBI recently set up Project management unit in Jammu
& Kashmir to develop MSMEs.
Small Industries Development Bank of India (SIDBI) set up on 2nd April
1990 under an Act of Indian Parliament, acts as the Principal Financial
Institution for Promotion, Financing and Development of the Micro,
Small and Medium Enterprise (MSME) sector as well as for co-
ordination of functions of institutions engaged in similar activities. The
mission of SIDBI is to facilitate and strengthen credit flow to MSMEs
and address both financial and developmental gaps in the MSME eco-
system. It is also known that their vision is to emerge as a single
window for meeting the financial and developmental needs of the
MSME sector to make it strong, vibrant and globally competitive, to
position SIDBI Brand as the preferred and customer – friendly institution
and for enhancement of share – holder wealth and highest corporate
values through modern technology platforms.
The development of MSME businesses have been through a roller
coaster ride. Due to the sudden effect of the pandemic many of the
MSME businesses were outright affected due to lack of demand and a
lot of uncertainty in the marketplace. This led to many MSMEs stopping
their businesses entirely. A lot of MSME rose from the ashes after the
tumultuous affair of the pandemic and since then they have all adjusted
well in the post pandemic era. Many of the small businesses have well
established their footprint in the marketplace and are now searching
for ways to expand their operations. It is very well known that the
Ministry of MSME is toiling hard for the welfare of the businesses from
the MSME sector and thus help in the development of the MSME sector
as a whole.
The MSME ecosystem is gradually growing in demand all across the
country. Many corporations are noticing the movements of the MSMEs
in the marketplace and how these MSMEs are making use of modern
technology to drive in more demand to the sector and thus increase the
internal competition between businesses as well. It is time to recognize
some of the commendable works done by the MSMEs that are
functioning in the rural parts of the country. These MSMEs are helping
to alleviate the rural financial pains that the people of those regions
undergo. It is very optimistic to see that MSMEs are doing a great job
by providing employment opportunities to the workers from the rural
parts of the country and also undertaking cluster development
programs for further skill development.
For more information: https://smeventure.com/msme-enterprises-can-enjoy-non-tax-benefits-post-upgradation/
SIDBI’s project management unit :
In line with the UK Sinha Committee recommendations and to foster
closer state cooperation, SIDBI had undertaken outreach programmes
in 10 states in FY2020. Based on feedback received, Project
Management Units in 11 states were planned for strengthening the
MSME Ecosystem and in transferring the good practices through
learning sessions. Under PMU full time experts are placed with nodal
connect departments. At state level while SIDBI’s local offices maintain
close cooperation and monitoring, there is a central unit of expert
agency which collaborates with Promotion and Development Vertical at
Head Office.
The expert agency has been advised to profile the potential of Micro
Enterprises in the respective states such that these can be targeted as
also onboarded on Mitra portal for addressing information asymmetry.
It is also envisaged that these PMUs shall be functioning as the
extended arms for P&D, SIDBI in terms of mapping developmental
gaps and, if picked up for intervention, monitoring (in coordination with
the state governments).
The following are some of the major footprints of the Project management
Units (PMUs)
A. The 11 states identified in the first phase are Assam, Andhra
Pradesh, Delhi, Gujarat, Haryana, Karnataka, Maharashtra, Rajasthan,
Tamil Nadu, Uttar Pradesh & Uttarakhand, initially for a period of 2
years. MoUs with all the 11 state governments have been signed and
PMUs have commenced operations in these states.
B. Project management Units in 8 additional states and 1 Union
Territory viz. Telangana, Jammu & Kashmir/Ladakh, Madhya Pradesh,
Jharkhand, Punjab, Bihar, West Bengal, Odisha and Chhattisgarh have
been identified in the second phase in FY 2022. MoU with State/UT
government viz. West Bengal, Telangana, Bihar Jammu & Kashmir have
already been executed.
Do watch: https://www.youtube.com/shorts/mxmhEv0xPgM
Small Industrial Development Bank of India (SIDBI) has signed a MoU
with Union Territory of Jammu & Kashmir to improve the MSME
ecosystem in Jammu & Kashmir. SIDBI-PMU (Grant Thornton Bharat LLP) recently
presented a compendium of Schemes of MSMEs to Saloni Rai, Director
Industries & Commerce Kashmir. It was presented by its consultant
Mohammad Rafiq for the benefit of MSME stakeholders and become
partners in industrial growth of the UT of Jammu & Kashmir as well as of
the nation.
It is extremely important to develop power infra for the MSMEs in
order to strengthen the MSME ecosystem. Many such steps are
constantly being undertaken for the development of the MSME sector
and this has led to direct impact on the number of entrepreneurs
signing up on the MSME portal to get their businesses verified as
MSMEs. The future of MSMEs in India seems to be on the upward
trajectory with a lot of demand at business and as well as at the
consumer level. The golden era of the MSMEs is yet to arrive and
probably will very soon.