KURUKSHETRA SUMMARY OCTOBER-2018 PRESENTED BY Dr. SWASTI SINHA
MICRO, SMALL AND MEDIUM ENTERPRISE
MSME The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED)Act, 2006 in terms of which the definition of micro, small and medium enterprise is as underl Enterprise means an industrial undertaking or a business concern or any other establishment by whatever named called, engage in the manufacture or production of goods in any manner.
SERVICE INVESTMENT IN PLANT AND MACHINERY MANUFACTURING MICRO <25 lakh <10 lakh SMALL 25 lakh-5 crore 10lakh-2 crore MEDIUM 5 crore-10 crore 2 crore-5 crore
ABOUT MSME From investment in plant and machinery to annual turnover during February 2018. The MSME Act will be amended accordingly ANNUAL TURNOVER Micro Small Mediumm ANY UNIT <5 crore 5 crore-75 crore 75 cr-250 crore
Will help for ease of doing business Align classification norms to new tax regime of GST.
MINISTRY OF MSME . SME DIVISION 1. National Small Industry Corporation Ltd. 2. National Institute-MSME AGRO AND RURAL INDUSTRY DIVISION 1. KVIC 2. Coir Board 3. MG Institute of Rural Industrialisation FINANCE WING .STATISTICAL DIVISION
Q. Aligarh is famous for which industry? a. Lock Industry b. Matchstick Industry c. Textile Industry d. Pharmaceuticals
ROLE OF MSME IN ECONOMY 1. GOALS - Income Quality Employment Generation Poverty Eradication Balance Regional Growth Trickle Down Effect - Inclusive Growth
2. MSME CONTRIBUTION Industrial Units-80/20 (MSME/Others) Manufacturing-45/55 Exports 40/60 GDP-3070 11.10 crore jobs 50 % OBC, 15% SC, 4% ST LOCATION 3 Million women run MSME 60m million units RURAL URBAN Manufacturing, Services Logistics, Food Processing etc
3. ADVANTAGE OF MSME Employment opportunity at low cost Less Capital Intensive Employment Generation Check - SDG Women enterprise
Q2. Which of the following is city
Role of KVIC: . KVIC has scripted many success stories in the post-2014 era. To penetrate in the established textile market, the KVIC decided to come up with the changed and aggressive marketing policies. For that, the KVIC invited many Textile Majors like Raymonds, Aditya Birla Fashion Retail, Arvind Mills etc. to join hands with KVIC, to market the signature fabric of India with innovative and highly market-friendly design intervention. The KViC derived a new concept of Khadi Korners', where space from large retail houses was taken on shop-and-shop basis in the mega-malls and other such up-markets. KVIC's main concern was the welfare and socio-economic development of the artisans, who sustain the pyramid of Khadi and Village Industries. KVIC also revived many closed and defunct Khadi institutions after 2015. One such example is revival of Sewapuri Ashram In an exercise to weed out any corruption, KVIC was able to identify and weed out the ghost beneficiaries- pretending to be artisans through the implementation of Aadhar seeded payment.
Boosting Economy Through MSMEs The Micro, Small and Medium Enterprises (MSMEs) have always been the backbone of Indian economy. They have played a great role in ensuring the socialistic goals like income equality,employment generation, poverty eradication, and balanced regional development as envisaged by the planners. Contribution of MSMEs in Indian Economy: . The MSMEs occupy a strategic importance in terms of output, exports and employment created in Indian economy. It produces about 45 per cent of manufacturing output and 40 per cent of the total exports. The contribution of MSMEs in India's GDP has reached 29.40 % in 2015-16.
Basically, the employment intensity of MSME is estimated to be four times greater when compared with other large enterprises. The MSMEs generate the highest employment per capita investment; they also go a long way in checking rural-urban migration by providing people living in isolated areas with a sustainable source of employment. Instead of taking a welfare approach, this sector seeks to empower people to break the cycle of poverty and deprivation. It focuses on people's skills and agency. However, different segments of the MSME sector are dominated by different social groups. . The representation of SC and ST owners in MSME sector was low at 12.45 per cent and 4.10 per cent respectively.
Steps taken by the Government: The government provided MUDRA, Stand up India, increased coverage of Credit Guarantee Fund for MSMEs through the banks. The Ministry is also tasked with the promotion of Khadi, Coir and Village Industries. Khadi and Village Industries Commission (KVIC) serves the basic needs of the processed goods of the vast rural areas in India Scheme of Fund for Up-gradation and Regeneration of Traditional Industries (SFURTI) is a cluster development scheme implemented by the government which aims at organization of traditional industries and artisans into clusters in order to make them competitive and sustainable in the long term Udyog Aadhaar memorandum is one of the best schemes of MSME development launched by GOI. In this, the Aadhaar card is a mandatory requirement. The benefit of registering in this scheme is ease in availing credit, loans, and subsidies from the government. Zero Defect Zero Effect' is another model that is prepared for development of this sector. In this model, goods that are manufactured for export have to adhere to a certain standard so that they are not rejected or sent back to India. In this, if the goods are exported, these are eligible for some rebates and concessions
New Initiatives by GOl: Prime Minister's Employment Generation Programme (PMEGP) has resulted into direct transfer of subsidy into the bank account of the beneficiaries . About 98 Vendor Development Programmes have been conducted to support SC and ST entrepreneurs as suppliers to the various Central Public Sector Undertakings (CPSUs) Public procurement order has made it mandatory from April 1, 2015 for Central Ministries and Central Public Sector Enterprises (CPSEs) to procure 20 per cent out of goods and services from MSMEs. 4 per cent out of the 20 per cent are reserved for SC and ST owned MSMEs
Conclusion: . To survive with such issues and compete with large and global enterprises, MSMEs need to adopt Innovative approaches in their operations.
- Medium enterprise - investment in plant and machinery is more than Rs. 5 crore but does not exceed Rs. 10 crore. B. Service Sector: - Micro enterprise investment in equipment does not exceed Rs. 10 lakh; Small enterprise investment in equipment is more than Rs. 10 lakh but does not exceed Rs. 2 crore. - Medium enterprise investment in equipment is more than 2 crore but does not exceed Rs. 5 crore. . In February 2018, the Union Cabinet has approved change on the basis of classifying Micro, Small and Medium enterprises from 'investment in plant & machinery/equipment' to 'annual turnover This will encourage ease of doing business, make the norms of classified growth oriented and align them to the new tax regime revolving around GST and the consequent growth will pave the way for increased direct and indirect employment in the MSME sector of the country.
Government Schemes: The Ministry of Micro, Small and Medium enterprises (MSME) is implementing various flagship programmes These activities are undertaken through its attached office, namely the office of the Development Commissioner (DC-MSME), National Small Industries Corporation (NSIC),Khadi and Village Industries Commission (KVIC); the Coir Board, and training institutes viz., National Institute for Micro, Small and Medium Enterprises (NI-MSME) Hyderabad and Mahatma Gandhi Institute for Rural Industrialization (MGIRI)
Accessibility of Credit: .Prime Minister's Employment Generation . Credit linked Capital Subsidy Schemes (CLCSS) Programme (PMEGP): Margin money assistance is provided Credit Guarantee Trust Fund for Micro and SmalI Enterprises (CGTMSE)
Sustainable Development Goals and MSMEs: .The critical contribution of MSMEs to broader social economic objectives, including job creation makes them a key priority area for achieving the Sustainable Development Goals (SDGs) . MSME development has the potential for wide reaching impacts on the SDGs globally, including SDG 1 (end poverty), SDG 2 (zero hunger), SDG 3 (good health and well-being), SDG 5 (gender equality), SDG 8 (promote inclusive and sustainable economic growth, employment and decent work), and SDG 9 improve sustainable industrialization and fostering innovation). Women Entrepreneurs and MSMEs: According to International Finance Corporation's research report, around 3.01 million women owned enterprises represent about 10 per cent of all MSMEs in the country. Collectively, they contribute 3.09 per cent of industrial output and employ over 8 million people. Approximately 78 per cent of women enterprises belong to the services sector.
Schemes for Women Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for Women. Micro & Small Enterprises Cluster Development Programme (MSE-CDP) .Credit Guarantee Fund Scheme for MSEs . Support for entrepreneurial and managerial development. Exhibitions for women under promotional package for MSEs. Success stories of Women Entrepreneurs Shri Mahila Griha Udyog Lijjat Papad, popularly known as Lijjat, is an Indian women's cooperative involved in manufacturing of various fast-moving consumer goods The Mulukanoor Women's Co-operative Dairy, the country's maiden dairy, set up and run by women, has been registering a steady growth since its inception. The Self-Employed Women's Association (SEWA) is successful and its efforts have mobilized large numbers of poor self-employed women for empowerment.
Steps Taken to Empower Granm Panchayats According to Gandhiji, Gram-Panchayats should be self-reliant in every way. To attain this dream of Gandhiji, the central government has initiated the Gram Panchayat Vikas Yojna (GPDP) in every village panchayat. In fact, it will be a major step towards the creation of a new India through Panchayati Raj System The schemes being formulated under GPDP will bring economic and social prosperity to the village and desired development will be possible at thee local level. Under this, the Gram Panchayats will have to craft a Gram Panchayaft Development Plan with the consent of all the villagers while properly managing their entire external and internal sources - resources. To motivate all concerned, to spread awareness and to implement GPDP effectively, the Central Government will be launching "Sabki Yojana Sabka Vikas" campaign
If this fund is utilized in a well-planned manner, then visibly large scale work can be undertaken. . This campaign is being launched after the completion of the intensive Gram Swaraj campaign executed in two phases with the aim of bringing 100 per cent coverage of the seven major schemes of the central government and bringing all the eligible persons within their purview.
Fostering Technology and Innovation MSME sector comprises around 63 million units employing about 111 million people, next only to agriculture sector. . With share of 30% in GDP, the sector accounts for about 45% of manufacturing output and about 45% of India's total exports. The sector comprising infrastructure, food processing, packaging, chemicals and IT with growth rate of over 10% has emerged as the engine of growth of Indian economy in the past few decades. The impact of technology on SMEs is indisputable; adopting latest technologies is essential for growth.
Top Technology Trends Shaping SMES: .Industry 4.0 integration: Industry 4.0 also known as Fourth Industrial Revolution, originated in Germany, is taking the manufacturing sector by storm. This is nothing but technical integration of cyber-physical systems in production with application of internet of things (IOT) Smart factory, smart operations and smart products with data- driven services are the mainstay of globally competitive SMEs Due to limited resources, Indian SMEs are slow in adoption of industry 4.0 models. Artificial Intelligence (Al) and Machine learning (ML) Large organizations have started using new technologies like Al and ML for resources optimization
Al based technologies can reduce operational inefficiencies and SMEs can optimally use these solutions for productivity enhancement. Virtual Reality (VR) and Augmented Reality (AR): VR is an artificial, computer-generated simulation of a real life environment or situation VR is manifested through wearable hardware. AR technology creates interactive layers, virtual enhancements on an existing reality AR is used on mobile devices to blend digital components. Many businesses are using AR technology in robot-assisted surgery, virtual real estate tours, urban planning, map-assisted navigation, simulated training and much more. Blockchain Technology: Blockchain or a distributed ledger technology is a network of computers that enable digital transaction
Roles of MSMEs: The significance of MSMEs is attributable to their calibre for employment generation, low capital, and technology requirement. The labour to capital ratio in MSMEs and the overall growth in the sector is much higher than that in the large industries. The geographic distribution of the MSMEs is also more even. Thus, MSMEs are important for meeting the national objectives of growth with equity and inclusion. They are also important for promotion of industrial development in rural areas, use of traditional or inherited skill, use of local resources, mobilization of resources and exportability of products. .Besides the wide range of services provided by the sector, the sector is engaged in the manufacturing of over 6,000 products ranging from traditional to hi-tech items.
Challenges: The Sector is always fund starved. Banks are often unwilling to lend. Long receivables cycles make a mess of working capital management. Little access to trained labour, technical progress and management support limit their growth. . Other common problems faced by small enterprises are related to availability of technology, infrastructure and managerial competence, and limitations posed by labour laws, taxation policy, market uncertainty and imperfect competition.
Conclusion: . For future growth in Indian economy and GDP increase, the share of MSME contribution would increase from current 8% to 15% by the year 2020. This would be realized by the growth of the new wave MSME led by entrepreneurship focused on innovation and technologies, creating opportunities for women entrepreneurs, and developing skilled resources.
Increasing the efficiency of the MSME sector depends on strengthening the following three pillars - Innovation Technology Finance The winning formula for enhancing competitiveness combines: Elimination of waste Enhancement of Technology Use of Quality and productivity tools Flow of information to all enterprise stakeholders. Use of ICT
Coir Industry Prospects and Challenges India is the largest coir producer in the world and also the largest consumer of coir and coir products Indian Coir Industry Indian coir and coir products are in great demand in domestic and foreign markets for their special features like price, workmanship, quality and charm It is also eco-friendly, decomposable, non-pollutant natural resource. The coir industry provides employment to about 7 lakh people in the country, out of which 80 percent are women The coir industry plays a significant role in sustainable development of India. It is agro- based, export-oriented cottage industry, which earns foreign exchange. The industry is mainly concentrated in Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Orissa, Assam, Andaman and Nicobar, Lakshadweep, Pondicherry. The coir industry provides employment opportunities to skilled and unskilled workers and full time and part time employment opportunities to agricultural labourers
Conclusion: . Since the development of coir sector contributes towards the sustainable development agenda in terms of creation of environmental friendly products, its application for domestic use along with the usage in housing, building, agriculture, horticulture, and infrastructure production are significant. It is therefore extremely important that, a major collective initiative may be taken up to promote the cause of coir by identifying the thrust areas involving a quantum jump in coir sector development.