The Government of India has been constantly increasing their efforts and
objectives to enable the MSMEs to perform their functions smoothly. A major
part of the support is given to the MSMEs by the Ministry of MSME. Their
objectives are essentially the key body that helps in governing the activities
of the MSMEs and helping them towards reaching their goals. The Ministry is
quite adept at keeping the tab with the current trends and happenings of the
MSMEs and finding ways to ameliorate the issues of the MSMEs at the ground
level. A variety of MSME Vikas Yojanas have been established for this reason.
These Yojanas prove to be very helpful amongst the MSMEs for their scaling
and further growth within and beyond the industry.
There was a huge setback to the MSME industry due to the covid pandemic
and the poor condition of the global economy but the MSMEs succeeded in
their efforts to thrive during this stressful period due to the well planned Vikas
Yojanas and their timely execution amongst the industry peers. The objectives
and economic landscape has changed completely in the post pandemic era. It
is essential for all the MSMEs to equip themselves with the best means of
production and quality standards in order to beat the current competition.
The following are some of the Vikas Yojanas discussed which had a
lasting effect on the MSME industry:
1.) Pradhan Mantri Kaushal Vikas Yojana:
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) was launched in 2015 to
encourage and promote skill development in the country by providing
free short duration skill training and incentivizing this by providing
monetary rewards to youth for skill certification. The overall idea was
to boost both the industry and employability of youths. During its pilot
phase in 2015-16, 19.85 lakh candidates were trained under this
scheme which proved to be a monumental success.
After the successful implementation of pilot PMKVY (2015-16), PMKVY
2016-20 was launched by scaling up both in terms of Sector and
Geography and by greater alignment with other missions of
Government of India like Make in India, Digital India, Swachh Bharat,
etc. The Scheme was aligned to Common Cost Norms and had a total
budgetary outlay of Rs 12000 Crores.
This scheme was implemented through the two components :
a.) Centrally Sponsored Centrally Managed (CSCM)
b.) Centrally Sponsored State Managed (CSSM)
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Objectives of PMKVY 2016-20 :
a.) Enable large group of participants who are youths to take up
industry level skilled training and become employable so as to be able
to earn their own livelihood.
b.) Increase productivity of the existing workforce, and align skill
training with the actual needs of the country.
c.) Put in place the foundation for creating a registry of skills and thus
encourage standardization of the certification process.
d.) Benefit over 10 million youths within a time period of 4 years.
2.) Khadi Gram Udyog Vikas Yojana :
Government of India launched Khadi Gram Udyog Vikas Yojana on July
30, 2020. This scheme was launched mainly for benefiting the artisans
involved in agarbatti manufacturing. Ministry of Micro, Small and
Medium Enterprises (MSME) approved this scheme. It aims at assisting
and development of agarbatti industry and its artisans thereby. It is
very essential to for the MSME sector to have a strong presence in the
village areas of India as it helps tremendously to elevate the economic
condition of the region. The Khadi Gram Udyog Vikas Yojana was a one
of a kind Yojana that helped in bridging the gap between MSME
developments in the major cities and its rural counterparts.
The following are the major objectives of the Khadi Gram Udyog Vikas
Yojana :
a.) Primary driver was to help the artisans in the villages involved in the
agarbatti industry.
b.) Secondly, the focus was given to develop the further prospects of
the industry to enable more employment opportunities for workers
across sections.
c.) It aimed at providing 200 automatic agarbatti making machines and
40 mixing machines to the artisans.
d.) This scheme aimed at the development of villages and domestic
agarbatti industry as a whole by meeting the demand and supply of
production in the long run.
Apart from these two well known Yojanas, the Government was very
keen to introduce many other beneficial Yojanas under the supervision
of the Ministry of the MSME. They approached the development of the
MSME industry by the tackling their problems by introducing all the
MSME Yojanas and thus alleviating their growth prospects within the
sector.
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In order to achieve and accomplish the objective and fulfillment of a successful
MSME, it is very important to have access to necessary capital in order to handle
the various costs of setup and production. This is where the MSME loan scheme
2022 changed the game entirely for the first time. It is a Government scheme for
MSME that can be obtained by Micro, Small, and Medium Enterprises to expand the business and itspurchase. It will help to purchase the equipment and machinery,
raw materials and working capital requirements, fixed asset investments, rent
payment, monthly expenses, salaries, cash flow management, and other financial
expenses need for day-to-day operational purposes.
The MSME loans are offered at competitive rates with flexible tenures. However,
banks offering these loans will have fixed rates as specified by the Reserve Bank
of India. With the simplification of the MSME loan scheme 2022, the enterprises
are eligible for the type of loan scheme for a sole proprietorship, manufacturing
units, partnerships, and service-based micro and small enterprises. There were
many other loan schemes that were offered by the government in order for
betterment of the MSMEs.
It could thus be said that the Government and specifically the Ministry
of MSME has been fairly successful in their attempt to improve the
current standards of the MSMEs by introducing Yojanas and schemes
that actually come into play and also by availing capital to the stressed
out MSMEs. They are doing the best of their efforts to increase the
possibilities of enhancing the MSMEs overall contribution to the Indian
economy.