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International MSMEs Day

  • 28 Jun 2021
  • 6 min read

Why in News

Every year, Micro, Small and Medium-sized Enterprises (MSMEs) Day is celebrated on 27th June to recognise the contribution of these industries in the implementation of the Sustainable Development Goals (SDGs).

Key Points

  • History:
    • The United Nations (UN) designated 27th June as Micro, Small and Medium-sized Enterprises Day through a resolution passed in the UN General Assembly in April 2017.
    • In May 2017, a program titled 'Enhancing National Capacities for Unleashing Full Potentials of MSMEs in Achieving the SDGs in Developing Countries' was launched.
    • It has been funded by the 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Fund.
  • Significance:
    • The UN wants countries to recognise sustainable development goals and create awareness about them.
      • An International Trade Centre survey on Covid-19 impact among businesses in 136 countries has shown that nearly 62% of women-led small businesses have been strongly affected by the crisis, compared to just over half of firms led by men, and women-owned are 27% more likely not to survive the pandemic.
    • Formal and informal MSMEs make up over 90% of all firms and account, on average, for 70% of total employment and 50% of GDP. As such, they are key actors in achieving a green recovery.
  • 2021 Theme:
    • MSME 2021: Key to an inclusive and sustainable recovery.
  • Role of MSMEs in Indian Economy:
    • They are the growth accelerators of the Indian economy, contributing about 30% of the country’s gross domestic product (GDP).
    • In terms of exports, they are an integral part of the supply chain and contribute about 48% of the overall exports.
    • MSMEs also play an important role in employment generation, as they employ about 110 million people across the country.
      • Interestingly, MSMEs are intertwined with the rural economy as well, as more than half of the MSMEs operate in rural India.

Initiatives to Promote MSME Sector

  • The Ministry of Micro, Small & Medium Enterprises (M/o MSME) envisions a vibrant MSME sector by promoting growth and development of the MSME Sector, including Khadi, Village and Coir Industries.
  • The Micro; Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector.
  • Prime Minister’s Employment Generation programme (PMEGP): It is a credit linked subsidy scheme, for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country.
  • Scheme of Fund for Regeneration of Traditional Industries (SFURTI): It aims to properly organize the artisans and the traditional industries into clusters and thus provide financial assistance to make them competitive in today's market scenario.
  • A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE): The scheme promotes innovation & rural entrepreneurship through rural Livelihood Business Incubator (LBI), Technology Business Incubator (TBI) and Fund of Funds for start-up creation in the agro-based industry.
  • Interest Subvention Scheme for Incremental Credit to MSMEs: It was introduced by the Reserve Bank of India wherein relief is provided upto 2% of interest to all the legal MSMEs on their outstanding fresh/incremental term loan/working capital during the period of its validity.
  • Credit Guarantee Scheme for Micro and Small Enterprises: Launched to facilitate easy flow of credit, guarantee cover is provided for collateral free credit extended to MSMEs.
  • Micro and Small Enterprises Cluster Development Programme (MSE-CDP): It aims to enhance the productivity and competitiveness as well as capacity building of MSEs.
  • Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS): CLCSS aims at facilitating technology upgradation of Micro and Small Enterprises (MSEs) by providing 15% capital subsidy for purchase of plant & machinery.
  • CHAMPIONS portal: It aims to assist Indian MSMEs march into the big league as National and Global CHAMPIONS by solving their grievances and encouraging, supporting, helping and hand holding them.
  • MSME Samadhan: It enables them to directly register their cases about delayed payments by Central Ministries/Departments/CPSEs/State Governments.
  • Udyam Registrations Portal: This new portal assists the government in aggregating the data on the number of MSMEs in the country.
  • MSME SAMBANDH: It is a Public Procurement Portal. It was launched to monitor the implementation of the Public Procurement from MSEs by Central Public Sector Enterprises.

Source: HT

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