MSMEs are fostering the Indian Economy proficiency

दुर्लभान्यपि कार्याणि सिद्यन्ति प्रोद्यमेन हि। शिलापि तनुतां याति प्रपातेनार्णसो मुहुः॥

The Impossible things can be accomplished with efforts. Like a hard rock gets thinner with repeated fall of water.

MSME stands for Micro, Small, and Medium Enterprises. It was introduced by the Government of India in agreement with the MSMED (Micro, Small, and Medium Enterprises Development) Act of 2006. As per this act, MSMEs are the enterprises involved in the processing, production, and preservation of goods and commodities. Investment limit for Micro Enterprises: Less than 1 crore INR Investment limit for Small Enterprises: 1-10 crore INR Investment limit for Medium Enterprises: 10-50 crore INR The turn-over limit for Micro Enterprises: Less than 5 crore INR The turn-over limit for Small Enterprises: 1-25 crore INR The turn-over limit for Medium Enterprises: 25-250 crore INR. Past developmental experience shows that MSMEs have protected our country from various shocks and adversities.

How MSMEs are contributing to the economy :-   # MSMEs are contributing massively to the country's economy and in much effective manner. India's 29% GDP share is coming from the MSMEs and also responsible for 50% of the India's total exports. 

#  MSMEs are accountable for one third of India's manufacturing output. This sector is providing employment to nearly 11 crore people and in future these number will be reaching to approximately 15 crore as projected. 

#  MSMEs are the backbone of the India's growing GDP and evolving as an exotic embodiment of new ideas and innovations. 

# The MSME sector encourages equitable distribution and inclusive growth as an engine of economic progress. 

# The industry supports regional growth and lessens regional disparities.

# The MSMEs are responsible for the creation of a broad entrepreneurial base.

# Women participation in the field of entrepreneurship is rising with great pace through MSMEs

Examples of MSMEs :- 

Here is a list of industries that fall under the MSME business list. The list of MSME businesses includes instances of MSMEs.

MSME firms include the following :- Leather good, Moulding of items, Natural fragrances and tastes, Management and placement services, Institute for training and education, Energy-saving pumps, Xeroxing, Crèches and a beauty salon are available, Garages and auto repair services, X-ray hospitals, Rental and leasing of equipment, Photographic lab, Maintenance of farm machinery for agriculture, Back-office operations, Local and International calling booths, Low-capital retail trade enterprise, Dish cable TV with multiple channels Using a dish antenna, Dry cleaning and laundry, Hardened metal ware, Electronic components for automobiles, Electronic monitoring and security, Engineering Mechanics, Engineering and manufacturing, VCRs, recorders, radios, transformers, motors, and watches, Plants' micronutrients and many more.

Main Areas of Concern :- 

@ Out-of-date labour laws, inspector raj and a heightened chance of labour disputes.

@ Poor infrastructure and weak marketing ties. Because of their weak infrastructure, their capacity to produce is limited and their production costs are quite expensive.

@ MSMEs have insufficient funds to meet their expenses for buying machinery, equipments and raw materials. Banks are not supporting with adequate loans and credits.

@ The MSMEs also face tough competition from large firms and multinational companies. Multinational companies are offering quality goods at affordable price.

@ The MSMEs have a low paying capacity, trained human resources are scarce, resulting in inadequate management capabilities, marketing channels and brand development capacity.

@ They find it very hard to sell their produce at competitive prices and are not able to spend much on advertising and marketing research.

Ladder of hopes in nurturing MSMEs to develop India's economic growth :-

Irrespective of the numerous stumblings, the MSME sector has demonstrated outstanding inventiveness, flexibility and resilience in order to survive the current economic environment and several policies and initiatives of government are fruitful to encourage the MSMEs performance, 

1. The ‘Digital India’ revolution provides another huge opportunity to enhance MSMEs’ contributions to the information, communication and telecommunications industry.

2. With government efforts such as ‘Make in India' the MSME sector has a great opportunity to grow in the future rapidly and anticipating the larger contribution to country's economy and employment opportunities. 

3. 'Vocal for Local' is the initiative that empowers the regional products, artifacts and entrepreneurs. It helps the sector to maximise the benefits and overcome the local people unemployment issues too. 

4. Emergency Credit Line Guarantee Scheme (ECLGS) has delivered additional credit to more than 130 lakh MSMEs. 

5. INR 2 Lakh Cr additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).

6. Raising and Accelerating MSME performance (RAMP) programme with an outlay of INR 6,000 Cr to be rolled out.

7. Udyam, e-Shram, National Career Service (NCS) and Aatamanirbhar Skilled Employee Employer Mapping (ASEEM) portals will be interlinked. They will now serve as portals with live, organic databases, delivering G2C, B2C, and B2B services relating to credit facilitation, skilling, and recruitment.

8. Launch of Udyam Assist Platform (UAP) to bring the Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).