R.

Balasubramanian,
Dy.General Manager-Tech
NSIC Technical services Centre,
Hyderabad

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 INTRODUCTION
 DEFINITION
 EMERGENCE OF MSME
 SCOPE OF MSME
 WHY WE NEED MSME?
 PERFORMANCE OF MSME IN INDIA
 EXPORT ORIENTED MSME UNITS
 STEPS IN SETTING UP MSME
 ROLE OF GOVT.FOR PROMOTING MSME
 COMMERCIAL BANK SERVICES AND PROMOTING MSME
 ADVANTAGES OF MSME
 PROBLEM FACE BY MSME
 SMALL BUSINESS SERVES AS A SEED BED FOR LARGE
BUSINESS
 CONCLUSION
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 MSME means Micro small & Medium
Enterprise, which are industrial undertaking
classified based on the investment on the
plant and machinery for Manufacturing sector
& Equipment for Service sector

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Manufacturing
Sector
Enterprises Investment in plant & machinery
Micro Enterprises Does not exceed twenty five lakh
rupees
Small Enterprises More than twenty five lakh rupees but
does not exceed five crore rupees
Medium Enterprises More than five crore rupees but does
not exceed ten crore rupees
Service Sector

Enterprises Investment in plant & machinery

Micro Enterprises Does not exceed ten lakh rupees:
Small Enterprises More than ten lakh rupees but
does not exceed two crore rupees
Medium Enterprises More than two crore rupees but
does not exceed five core rupees
 SMALL SCLAE INDUSTRIES PERIOD

MSME PRE- MSME POST

INDEPENDANCE INDEPENDANCE

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 Before Independence, the present small scale industry
was meant to denote the village and the urban cottage
industry.
 This group included a variety of industries ranging from
manufacturing of Iron safes, locks, carpets, marble jigs,
baskets, hand-loom cloth and the like.
 In fact, at that time the term „cottage and Small scale
industries‟ was used in juxtaposition to large scale
industries, which were established under the British
patronage.
 They received encouragement and support during the
freedom movement.
 The small scale industries found a prominent place in
the economic programme of the Indian Government.

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After 1947
 Jawaharlal Nehru maintained separate entities of small scale
industries. He was of the view that a small industry was the middle
sector and it would overlap both the cottage and the large
industries.
1977 industrial Policy
 The basic policy support of MSME sector had its roots in the
Industrial Policy Resolution 1977, laid emphasis on reservation of
items.
 The reservation economically viable and technologically feasible
products to be exclusively manufactured by small scale industry
began with a list of 47 items which was gradually extended to too
many products.

 The limit on the fixed capital investment for MSME’s was Rs 7.5
lakhs and for ancillaries it was Rs 10 lakhs. After the Industrial
Policy, the ceiling for investment for MSME’s was raised to Rs 60
lakhs and Rs 70 lakhs for ancillaries .

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 In accordance with the provision of Micro,
Small & Medium Enterprises Development
(MSMED) Act, 2006 the Micro, Small and
Medium Enterprises (MSME) are classified in
two Classes:

 (a) Manufacturing Enterprises

 (b) Service Enterprises:

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 Enterprises
engaged in
Manufacturing

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PROFESSIONAL
•(LAW,MEDICINE,ACCOUNTING )

SERVICES

COMMISSION •(TRANSPORT,

SERVICES
WAREHOUSING,REPAIR SHOP)

PERSONAL •(FASHION SHOPS, DRY

SERVICES
CLEANING )

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Person or firm that buys large
quantity of goods from various
producers or vendors, warehouses
them, and resells to retailers.

A business or person that sells goods

to the consumer, as opposed to
a wholesaler or supplier, who normally
sell their goods to another business.

Commission agents thrive in a variety

of businesses. International agents
work in the export/import arena.
Insurance and real estate agents also
often work on a sales-based
commission.
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 FOR EMPLOYMENT GENRATION
 FOR BALANCE REGIONAL GROWTH
 FOR MOBILISATION OF LOCAL
RESOURCES
 FOR EXPORT PROMOTION
 FOR CONSUMER SURPLUS
 FOR DEVELOPMENT OF
ENTERPRENEURSHIP
 FOR LARGE SCALE EMPLOYMENT
WITH LOW INVESTMENT
 FOR ATTAINING SELF RELIANCE
AND SELF DEPENDANCE
 FOR ENSURING EQUAL
DISTRIBUTION OF INCOME AND
WEALTH

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PERFORMANCE
OF
MSME
INDUSTRIES
IN
INDIA
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 SELF ACTUALISATION
 ECONOMIC INDEPENDENCE
 SELF IDENTIFICATION AND SOCIAL STATUS
 INCREASE CONFIDENCE
 SELF RESPECT

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 Small scale industries not only play a crucial
role in the development of Indian
economy but also have a great contribution
in the development of women employees in
India.
 Small scale industries providing a large
number of employment opportunities
towards male as well as female employees.

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 Small scale industrial units tries to provide
maximum employment facilities to the
women employees in order to make them self
sufficient in terms of finance and also wants
to improve their standard of living

 women employees are able to fulfill the

financial needs of their family and at the
same time they are able to save some amount
of money for their future.

 This leads to increase the morale of women

employees .

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 “New Entrepreneur - cum - Enterprise Development
Scheme" (NEEDS) for aspiring entrepreneurs during
the 12th Five year Plan (2012-2017).

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 The scheme aims to provide training to young
first generation entrepreneurs in
 Conceiving,
 Planning,
 Initiating and launching a manufacturing or
service enterprise successfully.

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 Capital subsidy at 25% of the project cost not
exceeding Rs.25 lakhs and soft loans with 3%
interest subvention.

 Around 1,000 entrepreneurs will be trained

each year under this scheme.

 Under this scheme, at least 50% of the

beneficiaries will be women.

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27
S. NO PRODUCT GROUP
1 READYMADE GARMENT
2 SPORTS GOODS
3 SPICES
4 LEATHER &LEATHER ITEMS
5 WOOL& WOOLEN KNITED GARMENT
6 PROCESSED FOOD ITEMS
7 TABACCO AND TABACCO ITEMS
8 ELECTRONIC ITEM AND COMPUTER
SOFTWARE
9 CASHEW ITEM
10 MARIENE PRODUCT
MAIN DESTINATION
USA,WEST ASIA,NORTH AFRICA
UK,USA,GERMANY
EAST ASIA, UNION ,NORTH AFRICA
GERMANY , UK, ITALY,USA,FRANCE
EUROPE,BANGLADESH ,JAPAN ,SHRI
LANKA , BHUTAN ,
EUROPE,BANGLADESH ,JAPAN, USA
EAST EUROPE
USA , UK , HONGKONG UAE,JAPAN
USA ,UK , JAPAN ,NEATHERLAND
UK,USA,GERMANY
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EUROPE,BANGLADESH
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 RESERVATION POLICY

CONCEMSMEON IN
PURCHASE AMSMETANCE
CENTRAL EXCISE

SIDBI SALE TAX EXEMPTION

Role of government
for promoting MSME

SUPPLY OF RAW
TCO’S MATERIAL

MARKETINF
FINACIAL INCENTIVE
AMSMETANCE

INDUSTRIAL ESTATES

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LOAN UPTO RS 25 LAKH TO ALL MSME
(WITOUT TAKING ANY COLLATERAL SECURITY )

 OPEN ATLEAST ONE BRANCE IN EVERY

DISTRICT WHERE MSME UNITS HAVE CLUSTER

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 RBI ISSUED DETAILED GUIDELINES TO
SCHEDULED COMMERCIAL BANK FOR TIMELY
AMSMESTANCE TO POTENTIALLY VIABLE
MSME UNITS AT REDUCED RATE .

 RBI ADVISED SOFT LOAN AMSMESTANCE TO

WOMEN ENTREPRENEURS BESIDE USUAL TERM
LOAN IN MSME, TO PROMOTE WOMEN
ENTREPRENEURS.

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NATIONAL SMALL INDUSTRIES CORPORATION LTD. (NSIC)

SMALL INDUSTRIES DEVELOPMENT ORGANIZATION (SIDO)

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)

SMALL INDUSTRIES –SERVICE INSTITUTE (SISI)

SMALL INDUSTRIES DEVELOPMENT CORPORATION (SIDC)

TECHNICAL CONSULTANC ORGANISATION (TCOs)

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 ADVANTAGES OF
ESTABLISHING MSME
EMPLOYMENT
GENRATION

MAKE USE OF
INDUSTRIAL WASTE

MEETS THE DEMAND

OF THE MARKET ADVANTAGES
OF ESTABLISH
MSME REDUCES REGIONAL
DISPARITY

SHARE IN NATIONAL
INCOME

EXPORT PROMOTION

SOCIAL ADVANTAGES

MOBILIZATION OF
LOCAL RESOURCES

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INTERNAL EXTERNAL
PROBLEMS PROBLEMS

FAULTY
LOCATION
PLANNING

POOR PROJECT POWER

IMPLEMENTATION PROBLEMS

POOR
INPUT
MANAGEMENT

INADEQUATE MARKET
FINACE PROBLEMS

LABOUR
GOVT. POLICY
PROBLEMS

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 SEED BED REFERS TO
PREPARING THE SOIL
FOR SOWING OF SEEDS
FOR A GOOD CROP. AS
IT PROVIDES CONDUCIVE
CONDITIONS FOR THE
DEVLOPMENT AND
GROWTH OF
ENTREPRENEURS

E.g:-AMUL,TOPS,VARDHMAAN, HIMALYA.PVT.LTD
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 TO SUM UP WE CAN SAY THAT MSME SERVES
AS A SEED BED OF ENTREPRENEURISHIP AS IT
PROVIDES CONDUCIVE CONDITIONS FOR THE
DEVLOPMENT AND GROWTH OF
ENTREPRENEURS . SMALL ENTREPRISES
REQUIER LOW INVESTMENT AND SIMPLE
TECHNOLOGY AND USE LOCAL RESOURCES
TO MEET LOCAL DEMANDS THROUGH
PERSONAL CONTACTS.

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