Government (Govt.) Policies for MSMEs | Policies & Schemes Governing MSMEs

In this article we will discuss about various Government (Govt.) Policies or Schemes governing MSMEs (Micro, Small & Medium Enterprises) – Entrepreneurship Development. Govt. Policies for MSMEs

Government Govt. MICRO, SMALL AND MEDIUM ENTERPRISES MSMEs POLICIES OR SCHEMES

In India, Micro, Small and Medium Enterprises (MSMEs) are governed by a range of Government Govt. policies or schemes designed to support their growth, development, and sustainability. These policies encompass various aspects, such as funding, technology, marketing, and overall business environment improvements. Key policies and initiatives include:

Government Policies or Schemes for MSMEs

MSME Act 2006:

The Micro, Small, and Medium Enterprises Development (MSMED) Act was established to promote, facilitate, and develop the competitiveness of micro, small, and medium enterprises. This act defines the criteria for classifying enterprises as MSMEs based on their investment in plant and machinery (for manufacturing) or equipment (for services).

Atmanirbhar Bharat Abhiyan (Self-Reliant India Campaign):

• Announced in May 2020, this campaign includes several measures to support MSMEs, such as:
  • Collateral-free loans.
  • Subordinate debt for stressed MSMEs.
  • Equity infusion through a Fund of Funds.
  • Revised definitions for MSMEs to include more enterprises.
  • Global tenders disallowed up to Rs 200 crores to protect MSMEs from international competition.

Prime Minister’s Employment Generation Programme (PMEGP):

• A credit-linked subsidy program aimed at generating self-employment opportunities through the establishment of micro-enterprises in non-farm sectors.

Govt. Government Policies for MSMEs

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):

• Provides credit guarantee to financial institutions offering loans to SMEs, ensuring that collateral is not a significant barrier.

Stand-Up India Scheme:

• Aimed at promoting entrepreneurship among women and SC/ST communities, this scheme facilitates bank loans between Rs 10 lakhs and Rs 1 crore.

Government Govt. Policies of MSMEs (Micro Small and Medium Enterprises)

MUDRA Yojana (Micro Units Development and Refinance Agency):

• Provides micro-financing support to SMEs through three products: Shishu (loans up to Rs 50,000), Kishor (loans between Rs 50,001 and Rs 5 lakh), and Tarun (loans between Rs 5,00,001 and Rs 10 lakh).

Digital MSME Scheme:

• Promotes information and communication technology (ICT) adoption among MSMEs to improve their competitiveness and productivity through cloud computing services.

Government Govt. Policies Schemes for MSMEs

National Manufacturing Competitiveness Programme (NMCP):

• Aimed at enhancing the competitiveness of the manufacturing sector, particularly SMEs, through schemes that focus on quality management standards, technology upgradation, and market assistance.

Udyog Aadhaar Memorandum (UAM) Policy or Scheme:

• A simplified one-page registration form for MSMEs to enable ease of doing business and facilitate access to government benefits.

Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012:

• Mandates that 25% of annual procurement by Central Ministries, Departments, and Public Sector Enterprises be sourced from MSEs, with a 4% reservation for MSEs owned by SC/ST entrepreneurs and 3% for women entrepreneurs.

Government (Govt.) Schemes Policies for MSMEs, Govt. Policies for MSMEs

Startup India Initiative:

• Though primarily focused on startups, many policies under this initiative also benefit SMEs, such as tax holidays, easier compliance norms, and a supportive environment for innovation and entrepreneurship.

Govt. Policies of MSMEs (Micro Small and Medium Enterprises)

Cluster Development Programme or Scheme:

• Provides financial assistance for setting up Common Facility Centers, improving infrastructure, and enhancing market access for clusters of SMEs.