Definitions of Micro, Small & Medium Enterprises By the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
Manufacturing Enterprises-he enterprises engaged in the manufacture or production of goods about any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise is defined in terms of investment in Plant & Machinery.
Service Enterprises:-The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
The Micro- Small and Medium Enterprises (MSMEs) are small-sized entities, defined in terms of the size of the investment. They are contributing significantly to output, employment export, etc. in the economy. They perform a critical role in the marketplace by employing a large number of unskilled and semi-skilled people, contributing to exports, raising manufacturing sector production, and extending support to more prominent industries by supplying raw material, essential goods, finished parts, and components, etc.
As per the ‘MSME at a Glance’ Report of the Ministry of MSMEs, the SectorSector consists of 36 million units and employs over 80 million persons. The sector produces more than 6,000 products contributing to about 8% of GDP besides 45% to the total manufacturing output and 40% to the exports from the country.
The Ministry of Micro, Small and Medium Enterprises, a branch of the Government of India, is the apex executive body for the formulation and administration of rules, regulations, and laws relating to micro, small and medium enterprises in India. The Minister of Micro, Small and Medium Enterprises is Nitin Gadkari, and the Minister of State is Pratap Chandra Sarangi since 31 May 2019.
The statistics provided by the annual reports of Ministry of Small and Medium Enterprises (MSME) shows a rise in the plan amount spent on the khadi sector from ₹1942.7 million to ₹14540 million, and non-plan amounts from ₹437 million to ₹2291 million, in the period from 1994–95 to 2014–2015. The interest subsidies to khadi institutions increased from ₹96.3 million to ₹314.5 million in this period.
The MSMEs are classified in terms of investment made in plants and pieces of machinery if they are operating in the manufacturing SectorSector and investment in equipment for service sector companies.
Though the primary responsibility of the promotion and development of MSMEs is of the State Governments, the center has passed an Act in 2006 to empower the SectorSector and also has formed a Ministry (Ministry of MSMEs). It was the Micro, Small and Medium Enterprises Development (MSMED) Act which was notified in 2006 that defined the three-tier of micro, small and medium enterprises and set investment limits.
The Ministry of Small Scale Industries and Agro and Rural Industries was created in October 1999. In September 2001, the Ministry was split into the Ministry of Small Scale Industries and the Ministry of Agro and Rural Industries. The President of India amended the Government of India (Allocation of Business) Rules, 1961, under the notification dated 9 May 2007. According to this amendment, they were merged into a single ministry.
The Ministry was tasked with the promotion of micro and small enterprises. The Small Industries Development Organisation was under the control of the department, as was the National Small Industries Corporation Limited public sector undertaking).
The Small Industries Development Organisation was established in 1954 based on the recommendations of the Ford Foundation. It has over 60 offices and 21 autonomous bodies under its management. These independent bodies include Tool Rooms, Training Institutions, and Project-cum-Process Development Centres.
The now-defunct Ministry of Agro and Rural Industries had the objectives of facilitating coordinated and focused policy formulation and effective implementation of programs, projects, schemes, etc., for improving supply chain management, enhancing skills, upgrading technology, expanding markets and capacity building of entrepreneurs/artisans and their groups/collectives.
The Ministry deals with the khadi, village, and coir industries through the Khadi and Village Industries Commission (KVIC) and the Coir Board. It coordinates the implementation of two countrywide employment generation programs, namely, the Rural Employment Generation Programme (REGP) and the Prime Minister’s Rozgar Yojana (PMRY) with the cooperation of State Governments, the Reserve Bank of India (RBI) and other banks.
The KVIC, established by an Act of Parliament, is a statutory organization engaged in the promotion and development of khadi and village industries for providing employment opportunities in the rural areas, thereby strengthening the rural economy. The coir industry is a labor-intensive and export-oriented industry. It uses a by-product of coconut, namely, coir husk. The Coir Board, a statutory body established under the Coir Industry Act 1953, looks after the promotion, growth, and development of the coir industry, including export promotion and expansion of the domestic market.
Integrated Training Centre, Nilokheri was an employment and training agency in Nilokheri in Karnal district in the state of Haryana owned and managed by the Government of India and responsible for upgrading the technical skills of technicians.
It was built around the vocational training center that was transferred from Kurukshetra, in July 1948 to the 1100 acres of swampy land on the Delhi-Ambala highway as one of several enterprises intended to provide employment and training for displaced persons following the partition of India. This training center was under Small Industries belonged to Subhash Mukherjee Development Organisation and used to provided training to extension officers (industries of State Governments as well as managers and technician entrepreneurs both in modern small scale and traditional village industries. During the Year 1986-87, the center trained 200 technicians, 85 women under the core women training program, and 57 SIDO officers.