Delhi Private School

Sharjah

DEPARTMENT OF COMMERCE
ECONOMICS
This is to certify that this is the work of
___________________ of class ___, Div. ___, Roll No.
___________. He/She has carried out necessary
practical work for the Senior Secondary School
Examination, AISSCE of CBSE under my supervision
for the academic year 2024 – 2025.

Teacher In-Charge

External Examiner
Date:
 ACKNOWLEDGEMENT

I would like to express my gratitude

towards my Marketing teacher Mr Sunil
Kumar . I would also like to extend my
gratitude to our respected principal Ms
Vandana Marwaha ma’am who gave us
the wonderful opportunity to do this
project on this topic .

This project has helped me expand my

knowledge and gain real time
information on this very topic .
A sincere thank you to my parents who
gave me the motivation to complete
the project in due time .
 Micro And
Small Scale
Industries
 Micro and Small-Scale
Industries
Micro enterprises are characterized by their small investment in plant and
machinery, typically less than INR 25 lakh. They often operate in the
unorganized sector and play a vital role in inclusive growth by generating
employment at a local level.
Small scale industries (SSI) are those industries in which manufacturing,
providing services, productions are done on a small scale or micro scale.
For example, these are the ideas of small scale industries: Napkins,
tissues, chocolates, toothpick, water bottles, small toys, papers,
pens. Small scale industries play an important role in social and economic
development of India. These industries do a one-time investment in
machinery, plants, and industries which could be on an ownership basis,
hire purchase or lease basis. But it does not exceed Rs. 1 Crore.

Essentially small scale industries comprise of small enterprises who

manufacture goods or services with the help of relatively smaller
machines and a few workers and employees.

 For Manufacturing Units for Goods: Investment in plant and

machinery must be between 25 lakhs and five crores.
 For Service Providers: Investment in machinery must be between 10
lakhs and two crores.
In developing countries like India, these small scale industries are the
lifeline of the economy. These are generally labour-intensive industries,
so they create much employment. They also help with per capita income
and resource utilization in the economy. They are a very important sector
of the economy from a financial and social point of view.
 What Does MSME Stand For

The acronym MSME stands for Micro, Small, and Medium Enterprises.
These enterprises are categorized by their turnover and investment in
plant and machinery. It started as a Small-Scale Industry Sector and has
been evolving ever since. After a major transformation and to increase
the number of beneficiaries under this scheme, it expanded to the MSME
sector in 2006. The number of registered MSMEs has been going up. It
has shown a CAGR (Compounded Annual Growth Rate) of 10.5% and
currently approximately 6.3 Cr MSMEs are registered.
The development of the MSME sector in India can be attributed to various
factors, including policy support, technological advancements,
globalization, increased awareness, and the entrepreneurial spirit
ingrained in the Indian population.
 CHARACTERISTICS
OF SMALL SCALE
INDUSTRIES
Small Scale Industries (SSI) are industries that manufacture, produce and
render services on a small or micro scale level. In India, several SSIs
exists in various fields such as handicrafts, toys, weaving, pickle making,
food products, etc. These industries make a one-time investment in
machinery, plant, and equipment, but it does not exceed Rs.10 crore and
annual turnover does not exceed Rs.50 crore.
 Ownership: Such units are generally under single ownership. So it is
a sole proprietorship or sometimes a partnership.
 Management: Both the management and the control generally is
with the owner/owners. So the owner is actively involved with the
daily running of the business.
  Limited Reach: Small scale industries have a restricted area of operations. So they
meet local and regional demand.
 Labor Intensive: These small scale industries tend to use labour and
manpower for their production activities. So their dependence on
technology is pretty limited.
 Flexibility: These units are more adaptable to their
changing business environment. So in case of sudden changes or
unexpected developments, they are flexible enough to adapt and
keep carrying on.
 Resources: They use local and readily available resources. This also
helps the economy with better utilization of natural resources and
less wastage.

 Small scale industries are characterized by there minimal area of

activities. Therefore they can meet only their local and regional
demand .

ROLE OF SMALL
SCALE INDUSTRY IN
THE ECONOMY

Total Production

These enterprises account for almost 40% of the total goods and services
produced in the Indian economy. They are one of the main reasons for the
growth and strengthening of the economy.

Make In India
SSIs are the best examples of the make in India initiative . They focus on
the mission to manufacture in India and sell the products worldwide . This
also helps create more demands from all over the world.

Employment

These small scale industries are a major source of employment in the

country. The whole labour force cannot find work in the formal sector of
the economy. So these labour-intensive industries provide a livelihood to a
large portion of the workforce.

Welfare of the Public

Other than economic reasons, these industries are also important for the
social growth and development of our country. These industries are
usually started by the lower or middle-class public. They have an
opportunity to earn wealth and employee other people. It helps with
income distribution and contributes to social progress.

Objectives of SSI
 To create more employment opportunities.
 To help develop the rural and less developed regions of the economy.
 To reduce regional imbalances.
 To ensure optimum utilisation of unexploited resources of the country.
 To improve the standard of living of people
 To ensure equal distribution of income and wealth
 To solve unemployment problem

Examples of Small Scale Industries in India

 Bakeries
 Coconut oil making
 Biodiesel production
 Rice mill
 Xerox and printing
 ADVANTAGES AND DISADVANTAGES
OF SMALL SCALE INDUSTRY

Advantages

1. Employment Generation: Small scale Industry’s are significant contributors to

employment, especially in rural areas and among skilled and semi-skilled workers. They
help reduce unemployment and underemployment.

2. Entrepreneurship Development: Small-scale industries

encourage entrepreneurship by providing opportunities for
individuals to start their own businesses with relatively lower capital
investments.

3. Low Capital Requirement: Many small-scale industries can be

started with low capital investment, making entrepreneurship more
accessible to a wider range of people.

4. Government Support: Governments often provide support in terms

of subsidies, incentives, and preferential treatment to SSIs to
promote economic growth.

Disadvantages

1. Limited Scale of Operations: SSIs may face limitations in

economies of scale, which can affect their competitiveness and
profitability compared to larger firms.

2. Limited Access to Finance: Access to finance can be a

significant challenge for SSIs, as they may struggle to secure
loans from banks and financial institutions due to perceived
higher risks.
3. Skill Shortages: Finding skilled labor can be difficult for SSIs,
especially in specialized industries where specific technical skills
are required.

4. Marketing and Distribution Challenges: Small-scale

industries often face difficulties in marketing their products
effectively and accessing distribution channels dominated by
larger competitors.

Registration of Small Scale

Industries in India

1. Small scale industries registration is a registration provided by

the Ministry of MSME . A business should obtain SSI registration
in order to be eligible for a number of schemes , subsidies and
other incentives provided by the Government to such SSI’s . SSI
registration can be obtained online as well .
2. SSI registration is provided by the Ministry of Micro, Small and
Medium Enterprises through the Directorate of Industries of the
state Government. The main logic behind the SSI registration is
to set up new SSI businesses in India . SSI registration helps the
business to be eligible for a number of subsidies given by the
Government . We can also get SSI/MSME registration online
through Udaym Registration. The steps for registration online is
as follows :-
 Visit the Udaym Registration portal and click on the For
New Entrepreneurs who are not registered yet as MSME
  Fill in your “Aadhaar Number” and “Name of the
Entrepreneur” and click on the “Validate and Generate
OTP” button.
 You will receive OTP to your mobile Number. Enter OTP on
the PAN verification page will open. Enter PAN details and
click on the “Validate Pan” button.
 The Udaym Registration page will open. Fill in all the
personal details and industry name, address, bank account
details and common information and click on the “Submit
and Get Final OTP button ”.
 With this the MSME registration is complete and a message
of successful registration with a reference number will
appear . After verification of registration the MSME
registration Certificate is issued
 If a person wants to get registration for more than one
industry then also he/she can opt. for an individual SSI
registration. The documents required for the SSI
registration are Aadhar Number and PAN number . NO
registration fees are required for the registration.

Eligibility Criteria for SSI

Registration
In India, small-scale industries are categorized based on investment in
plant and machinery .

SSI registration can be obtained for enterprises that are considered as

micro and small enterprise under the MSME Act 2006.

A micro enterprises is an enterprises whose investment in plant machinery

and equipment does not exceed Rs 1 crore and turnover does not exceed
Rs 5 crore.

A small enterprise is an enterprise whose investment in plant machinery

and equipment does not exceed Rs 10 crore and turnover does not exceed
Rs 50 crore.

Medium: The investment in plants and machinery exceeds Rs. 5 crore but
not Rs. 10 crore.
 Benefits of obtaining Small Scale
Industries Registration

 There are various tax rebates offered to small scale industries

 A credit for Minimum Alternate Tax (MAT) is allowed to be carried
forward for up to 15 years instead of 10 years
 There are many government tenders that are only open to the small
scale industries .
 Once registered the cost of acquiring a patent or the cost of setting
up the industry reduces as many rebates and concessions are
available .
 Business registered as small scale industries are given higher
preference for government license and certification.

Employment in Small Scale Industries

1. Job Creation: SSIs in India are major job providers, particularly

in rural and semi-urban areas where larger industries may not
have a presence. They contribute significantly to reducing
unemployment and underemployment by offering employment
opportunities to a diverse range of individuals, including skilled,
semi-skilled, and unskilled workers.
2. Labour Intensive: Many SSIs in India are labour-intensive,
meaning they require a significant workforce to operate
efficiently. This characteristic makes them vital for absorbing
surplus labour from agriculture and other sectors.
3. Contribution to GDP: SSIs make a substantial contribution to
India's Gross Domestic Product (GDP). They account for a
significant portion of industrial production and manufacturing
output in the country.
4. Entrepreneurship: SSIs encourage entrepreneurship by
providing a platform for individuals to start and manage their
own businesses with relatively lower capital investments
compared to large industries.
5. Decrease in Migration of Labourers: Migration means the
movement of labourers from village to city in search of a job .
Due to an increase in small scale industries in village areas
migration of labour is reduced therefore labourers are able to
get good amount of employment in there own villages.

Overall, employment in small scale industries plays a crucial

role in India's economic development by fostering inclusive
growth, promoting entrepreneurship, and providing livelihood
opportunities to a large section of the population, particularly in
rural and semi-urban areas. Therefore MSMEs are a major
backbone for the Indian Economy .

FEATURES OF MSME
Here are some essential features of MSMEs

1. MSMEs work for the welfare of the workers and artisans. They
help them by giving employment and by providing loans and
other services .

2. MSMEs provide credit limit or funding support to banks .

3. They promote the development of entrepreneurship as well as

up-gradation of skills by launching specialized training centers
for the same .

4. They support the up-grading of developmental technology,

infrastructure development , and the modernization of the
sector as a whole.
 5. MSMEs are known to provide reasonable assistance for
improved access to the domestic as well as export markets.

6. They also offer modern testing facilities and quality certification

services .

7. Following the recent trends , MSMEs now support product

development , design innovation , intervention and packaging .

Contribution of MSMEs in Country’s

Economy at Current Price
 Major Challenges Faced

1. Access to Finance: One of the primary challenges for SSIs is

access to adequate finance. Many small businesses struggle to
obtain loans from formal financial institutions due to lack of
collateral, limited credit history, and high interest rates. This
hampers their ability to invest in technology, expand operations, and
compete effectively in the market.
2. Infrastructure Deficiencies: SSIs often face inadequate
infrastructure such as unreliable power supply, poor roads,
inadequate water supply, and limited access to transportation
networks.
3. Skills Shortage: There is a shortage of skilled labor in certain
sectors relevant to SSIs, such as manufacturing and technical trades.
4. Vulnerability to Economic Shocks: SSIs are often more
vulnerable to economic downturns, fluctuations in raw material
prices, exchange rate volatility, and changes in government policies.
Survival of the MSME Sector through
Covid – 19

The COVID-19 pandemic posed unprecedented challenges for

Micro, Small, and Medium Enterprises (MSMEs) worldwide,
including in India. However, many MSMEs demonstrated
resilience and adapted to survive during this challenging period

 Diversification of Product Lines: Some MSMEs pivoted their

production lines to manufacture essential goods such as
personal protective equipment (PPE), sanitizers, medical
equipment, and other pandemic-related supplies. This
diversification helped them tap into new markets and maintain
revenue streams.
 Adaptation of Business Models: Businesses that adapted
their business models to meet changing consumer preferences
and market demands were more likely to survive. This could
include offering new services, changing distribution channels,
or renegotiating contracts with suppliers and partners.
 Cost Rationalization and Efficiency Measures: MSMEs
focused on reducing operational costs, optimizing resources,
and improving efficiency to conserve cash flow during the
economic downturn.
 Employee Support and Retention: Many MSMEs prioritized
the well-being of their employees by implementing flexible
work arrangements, providing safety measures at workplaces,
and ensuring timely payment of salaries and benefits.

While the challenges were significant, the adaptability and

resilience demonstrated by many MSMEs in India during COVID-
19 underscore their importance as drivers of economic growth
and employment. Moving forward, continued support from the
government, adoption of digital technologies, and strategic
planning will be essential to ensure the sustained growth and
resilience of MSMEs

Recent Developments in the SSI

1. Government Initiatives: The Indian government continues to

support small-scale industries through various initiatives like
the Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission),
which aims to promote local manufacturing and
entrepreneurship. Programs such as Make in India, Startup
India, and Stand-Up India also provide support in terms of
funding, incentives, and regulatory reforms.
2. Digital Transformation: There's a notable shift towards digital
transformation among small-scale industries. Adoption of digital
technologies such as e-commerce platforms, digital marketing,
and cloud-based services is helping SSI improve operational
efficiency.
3. Skill Development: Initiatives focused on skill development
and capacity building are being implemented to enhance the
capabilities of SSI entrepreneurs and workers.

4. Access to Finance: Improving access to finance remains a

critical area of development. Efforts to ease credit availability
through initiatives like the MUDRA scheme (Micro Units
Development and Refinance Agency) are helping small-scale
industries secure funding for growth and expansion.
5. Technology Adoption: Adoption of advanced technologies
such as Internet of Things (IoT), Artificial Intelligence (AI), and
automation is gradually increasing among SSIs. These
technologies are being leveraged to enhance productivity,
quality control, and innovation capabilities.

These developments indicate a dynamic shift towards

modernization, digitalization, and sustainability within India's
small-scale industries sector, aiming to foster growth,
competitiveness, and resilience in a globalized economy.

RECENT INITIATIVES BY THE GOVERNMENT

The Government of India has developed key strategies to
promote and support the MSME sector to promote
competitiveness this has resulted in a dramatic positive change
in the sector. Key characteristics of Indian MSMEs has such a
high contribution to domestic production , significant export
earning , low investment requirements, operational flexibility ,
location wise mobility , capacities to develop appropriate
indigenous technology import substation , contribution towards
defense production , technology- oriented industries and
competitiveness in domestic and export markets help them top
opportunities in various sectors.
Here are some key initiatives:

1 . Pradhan Mantri Micro Units Development and

Refinance Agency (MUDRA) Scheme: Launched in 2015,
this scheme provides financial support for the development and
refinancing of micro units. It offers loans up to ₹10 lakh to small
businesses, including those in the manufacturing, trade, and
service sectors.

2 . Startup India Scheme: Introduced in 2016, this initiative

aims to promote entrepreneurship by providing various benefits
such as tax exemptions, easier compliance, and funding
support.
 3 . Make in India: Launched in 2014, this initiative focuses on
encouraging domestic manufacturing and attracting foreign
investment. It aims to boost the growth of industries including
small and medium-sized enterprises by simplifying regulations
and improving infrastructure.

4 .National Small Industries Corporation (NSIC)

Schemes: NSIC provides various support services to small
industries, including marketing assistance, procurement and
distribution of raw materials, and financial assistance through
its various schemes.

5 .Digital MSME Scheme: Launched to promote digitalization

among MSMEs, this initiative encourages the adoption of
technology and digital tools to enhance productivity and
efficiency.

6 .National Infrastructure Pipeline (NIP): The NIP includes

investments in infrastructure projects that can benefit MSMEs
through improved connectivity and logistics, thereby facilitating
better access to markets and resources.

7 .Production Linked Incentive (PLI) Schemes: These

schemes offer incentives to various sectors, including MSMEs,
to boost production and enhance competitiveness. They are
designed to promote domestic manufacturing and attract
foreign investment.

8 .SME Growth Fund: This fund is aimed at providing

financial assistance to SMEs for expansion and modernization.
It focuses on improving the competitiveness of SMEs in both
domestic and international markets.

9 .Credit Guarantee Fund Trust for Micro and Small

Enterprises (CGTMSE): This scheme provides credit
guarantees to banks and financial institutions for loans
 extended to micro and small enterprises. It helps mitigate the
risk for lenders and facilitates easier access to credit for SSIs.

10 . Atmanirbhar Bharat (Self-Reliant India): Announced

in 2020, this initiative seeks to promote self-reliance and
reduce dependency on imports. It includes a special economic
package with provisions to support MSMEs through various
financial and policy measures.

Benefits of getting MSME registered in

India

1. Loans without collateral :- The government has introduced

various initiatives for MSME that allow them to avail credit
without collateral . One of the best MSME registration benefits
the initiative to provide collateral- free loans is undertaken by
the Government of India and the small industries development
bank of India (SIDBI) and the ministry of micro , small and
medium enterprise under the name the credit guarantee trust
fund scheme . This is by far the best MSME registration benefit
for small business owners

2. Subsidy on patent Registration and Industrial promotion :-

Business enterprises registered under the MSME act are given a
hefty subsidy of 50 percent for patent registration . This can be
availed by sending an application to the respective ministry . In
addition to this one of the great MSME registration benefits are
getting a subsidy for industrial promotion suggested by the
government .

3. Overdraft facility along with interest rate exemption :-

Businesses or enterprises registered as MSME under the MSME
act are eligible to avail of a benefit of 1% on the overdraft as
 part of the credit guarantee trust fund scheme . although this
can vary from bank to bank

4. Concession on electricity :- One of the simplest MSME

registration benefits businesses registered under the MSME act
can avail of a concession on electricity bills .

5. Protection against delayed payments :- Understanding the

ambiguity lying with business revenues the government has
extended a helping hand by providing a layer of protection
against payments . As of now the ministry of Micro , small and
medium enterprises has given business owners and enterprises
have given business owners and enterprises to collect interest
on payments delayed by the buyer .

6. ISO certification charges Reimbursement :- A registered small

or medium enterprise can claim the expenses for
reimbursement that were spent on Iso certification . The MSME
industry is growing significantly due to the constant support
from the Indian government .
MSME ON THE INTERNET
  Facebook
 Twitter
 Digital Mass Media
 Youtube

Share of MSME in the market

MSME’s constitute over 90 percent of total enterprises in most economics

and are credited with generating high rates of employment and account
for a major share of industrial production and exports in India too MSMEs
play a pivotal role in the overall industrial economy of the country with
its agility and dynamism the sector has shown admirable innovativeness
and adaptability to survive the recent economic downturn and recession

Apart from providing support to large industries MSMEs have played an

important role in the development of states in terms of employment
generation . More than 55% of these enterprises are located in six major
states of the country namely . Utter Pradesh , Maharashtra , Tamil Nadu ,
West Bengal , Andhra Pradesh and Karnataka .

The MSME sector has slowly come into the limelight with increased focus
from the government and other government institutions corporate bodies
and banks . Policy- based changes investments in the sector globalization
and India’s robust economic growth have opened up several latent
business opportunities for this sector .

With all these developments there is a huge

Importance of MSMEs for the

Indian Economy
Across the globe MSMEs are accepted as a means of economic growth
and for promoting equitable development . They are known to generate
the highest rate of growth in the economy . MSMEs have driven India to
new heights through requirements of low investment , flexible operations
and the capacity to develop appropriate native technology .

1. MSMEs employ around 120 million persons becoming the

second – largest employment generating sector after
agriculture .
2. With approximately 45 lakh units throughout the country it
contributes about 6.11% of GDP from manufacturing and
24.63% of the GDP from service activities .

3. MSME ministry targets to increase its contribution towards GDP

y up to 50% by 2025 as India moves ahead to become a $5
trillion economy .

4. Contributing around 45% of overall Indian exports

5. MSMEs promote all – inclusive growth by providing employment

opportunities especially to people belonging to weaker sections
of the society in rural areas.

6. MSMEs in tier -2 and tier – 3 cities help in creating opportunities

for people to use banking services and products which can
amount to the final inclusion of the contribution of MSMEs for
the economy .

7. MSMEs promote innovation by providing an opportunity to

budding entrepreneurs to help them build creative products
and thereby boost competition in business and fuel the growth.

The Indian MSME sector provides silent support to the national

economy and acts as a defence against global economic shock
and adversities . Hence we can say that India is propelling
towards a robust global economy through a silent revolution
powered by MSMEs .
 Government assistance and initiatives
to MSME

In India, the government has implemented a range of initiatives and

assistance programs to support Micro, Small, and Medium Enterprises
(MSMEs). These programs aim to enhance the competitiveness of MSMEs,
foster innovation, and improve access to finance and markets. Here are
some key initiatives and support mechanisms available to MSMEs in India:

1. Financial Assistance:
 Prime Minister's Employment Generation Programme
(PMEGP): Provides financial assistance to new and existing MSMEs
for setting up or expanding businesses. It offers subsidies and loans
for capital investment and working capital.
 Credit Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE): Provides credit guarantees to banks and financial
institutions for loans extended to MSMEs, reducing the risk for
lenders and facilitating easier access to credit.
 MSME Loan Scheme: Provides collateral-free loans to micro and
small enterprises. The scheme is designed to improve access to
financing for businesses that may not have significant assets.

2. Subsidies and Grants:

 Technology Upgradation Fund Scheme (TUFS): Supports the
modernization of machinery and technology in MSMEs. It provides
subsidies for upgrading technology to improve productivity and
quality.
 Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-
GKY): Aims to enhance the employability of rural youth through skill
training and provides funding to MSMEs for employing trained
individuals.
3. Tax Benefits and Incentives:
 MUDRA Loans: Under the Pradhan Mantri Mudra Yojana (PMMY),
MSMEs can access low-interest loans for business expansion and
working capital needs. This includes loans under the Shishu, Kishore,
and Tarun categories.
 Income Tax Benefits: MSMEs are eligible for various tax incentives,
including deductions and exemptions on business profits, to reduce
their tax liabilities.

4. Skill Development and Training:

 National Skill Development Corporation (NSDC): Provides
training and skill development programs to enhance the capabilities
of MSME employees and entrepreneurs.
 Entrepreneurship Development Programmes: Various state and
central government schemes offer training and workshops to help
entrepreneurs develop business skills and manage their enterprises
effectively.

5. Infrastructure Support:
 Industrial Estates and Parks: Development of industrial estates
and parks with ready-to-use infrastructure to support MSME
operations and reduce capital expenditure.
 Cluster Development Programme: Supports the development of
industry-specific clusters by providing infrastructure, technology,
and skill development support tailored to the needs of specific
sectors.
6. Market Access and Promotion:
 Trade Fairs and Exhibitions: Government-organized trade fairs
and exhibitions provide MSMEs with platforms to showcase their
products, network with potential clients, and explore new market
opportunities.
 Export Promotion Schemes: Includes various schemes and
incentives to promote MSME exports, such as financial assistance for
marketing and compliance with international standards.

7. Technology and Innovation Support:

 Small Industries Development Bank of India (SIDBI): Offers
financial support for innovation and technology adoption through
various schemes and funding options.
 National Innovation Foundation (NIF): Provides support for
innovations and intellectual property rights, helping MSMEs leverage
new technologies and ideas.

8. Legal and Advisory Support:

 MSME Development Act: Provides a legal framework for the
development and promotion of MSMEs, including provisions for
financial and non-financial support.
 Business Development Services: Includes advisory services on
legal compliance, business management, and financial planning to
help MSMEs navigate challenges and optimize operations.

These programs and initiatives are designed to address various

challenges faced by MSMEs and to foster their growth and development.

Other initiatives like the ONE NATION ONE CARD scheme and the Ajeevika
app are in various stages of implementation. This can help employers tap
into the locally available labour workforce and restart production activities
that were hampered due to the migration of labour to their hometowns .
The government procurement of goods and services .
The MSMEs share in government procurement of goods and services. The
MSMES have benefitted with orders worth Rs20,000 crore since the
inception of Gem . Along with the PM’s call for a self-reliant India the
current face -off between India and China has led to an increased demand
for locally manufactured goods unleashing new opportunities for Indian
MSMEs . We believe MSME businesses that are willing to reimagine their
businesses and evolve with the changing times will be poised to leapfrog
on the back of this unique opportunity
 Support programmes by the
Government

Prime Minister Employment Generation

Programme (PMEGP)
The program’s objective is to provide financial assistance for self-
employment ventures in order to generate long-term employment for
unemployed youth and traditional craftsmen in both rural and urban
areas. MSMEs can take advantage of this programme by obtaining bank-
financed loans with subsidies to help them launch new micro businesses
in industries other than agriculture.

Micro and Small Enterprises Cluster

Development Programme (MSE-CDP)
The MSE-CDP was established with the goal of assisting MSMEs in
developing and being sustainable by addressing challenges with
information technology, skills and excellence, and market access.
Through the establishment of self-help groups, the strengthening of
associations, and other strategies, the programme also increases MSMEs’
ability for collaborative supportive actions.

Procurement and Marketing Support (PMS)

Scheme
The Procurement and Marketing Support Scheme promotes new market
access efforts, such as organising or participating in national or
international trade fairs or exhibitions, in order to increase the
marketability of services and goods in the MSME sector.
Entrepreneurship and Skill Development
Programme (ESDP)

The programme seeks to increase public awareness of entrepreneurial

culture to inspire young people from various social groups to consider
entrepreneurship as a potential career path. One of the key goals of the
programme is to offer fundamental entrepreneurship training to assist
entrepreneurs in putting their concepts into action, bring about cognitive
and attitude changes in the target group and enhance their individual
entrepreneurial skills.
The ESDP additionally encourages the growth of existing MSMEs and the
establishment of new ones, which will increase productivity and lead to
the creation of new jobs. Agriculture -based products, food and fruit
processing industries, carpet weaving, mechanical engineering
workshops, fabrication, carpentry, etc., are just a few of the industries
that would receive entrepreneurial training and skill development under
the programme.
 Conclusion
The Micro , Small and Medium Enterprises (MSME) sector is the backbone
of India’s economy .
By acknowledging the importance of MSMEs and simplifying processes
like MSME registration online . We can further empower entrepreneurs
and foster growth . As we look to the future supporting and nurturing the
MSME sector will be paramount for a robust and inclusive economic
landscape .
In conclusion the MSME sector epitomizes the spirit of Make in India and is
a cornerstone in achieving sustainable economic development social
equity employment generation . The continued growth and support of this
sector will undoubtedly pave the way for a prosperous and inclusive
India .
 BIBILOGRAPHY

Internet
Wikipedia
Books and Enclyopedias

Reference Links :-
https://en.m.wikipedia.org/wiki/Ministry-of-micro-small-and-medium-
enterprises
https://msme.gov.in/
https://cleartax.in/s/small-scale-industries-ssi
https://www.lendingkart.com/blog/small-scale-industires-in-india/
https://www.encyclopedia.com/international/encyclopedias-almanacs-
transcripts-and-maps/small-scale-industry-1947
https://www.findevgateway.org/paper/2020/07/impact-covid-19-pandemic-
micro-small-and-medium-enterprises-msmes-kenya-reporthttps://
en.m.wikipedia.ord/wiki/ministry-of-micro-small-and-medium-enterprises
https://www.topper.com/guides/business-environment/scales-of-business/
small-scale-industries