MSME Ministry rolls out draft National Policy for Micro, Small and Medium Enterprises (MSME) in India; proposes action areas to build an eco-system for rapid growth of MSME sector
Ministry of Micro, Small and Medium Enterprises (MSME) has introduced a draft Policy with a view to bring together a comprehensive frame-work of strategies and actions for suitable adaptation and inclusion in the State-level policies. The purpose of the draft is to firm up adaptive and inclusive National Policy for Micro, Small and Medium Enterprises.
Key Highlights:
Background
The Government of India has initiated steps to stimulate productivity of the sector with creation of Ministry of MSME in 2004 and enactment of MSMED Act 2006. The Act brought together the typology of units and paved way for investment-based definition of MSME in the manufacturing and services. The Ministry also constituted several committees to review the status of MSMEs. These committees recommended modifications in the following:
• Ceiling/ definition;
• Access to finance, global and domestic markets;
• Improving R&D and adopting modern & affordable technologies;
• Lack of marketing platforms;
• Distribution network, affordable skilled labour and revision in labour laws taking care of the enterprises without compromising the interest of the workers, etc.
This draft policy document on MSME is in continuation to measures to promote competitiveness, technology upgradation, infrastructure, cluster development, dedicated credit, procurement of products and financial assistance to MSME. The purpose is to bring together a comprehensive frame-work of strategies and actions for suitable adaptation and inclusion in the State level policies.
Vision
• Stimulate efficiency and productivity of MSME sector;
• Generate income and employment;
• Become part of domestic and global value chains (taking into account structural transformation, competitive edge, demographic dividend and regional balance)
Objectives
• To facilitate and build a vibrant eco-system for rapid growth of the MSME sector;
• Identify and sensitize stakeholders to promote MSMEs to the best of their potential;
• Create physical infrastructure and linkages (backward & forward), amenable to MSMEs, Ensure access to credit, risk capital, raw material and marketing facilities for MSMEs;
• Develop a framework for accessible and affordable Technology upgradation and Capacity Building for MSMEs as well as harnessing the potential of technological advancement to deliver services to stakeholders especially MSMEs;
• Promote a Conducive Business Environment covering ‘ease of doing business’ (EoDB) and suitable exit code;
• Develop appropriate dispute resolution mechanism.
Action Areas
Specific action areas which need deliberations for a national policy to guide, motivate, and handhold States have been identified:
• Intergovernmental Roles & Responsibility;
• Legislation and Regulatory Framework for MSMEs in India;
• Access to Finance/Financial Assistance for MSMEs;
• Technology Upgradation/ Adaptation;
• Skill Development;
• Knowledge Management;
• Ease of Doing Business;
• Development of MSME Code;
• Exit code
A copy of the Notification is attached herewith for ease of reference.
Source: Ministry of Micro, Small and Medium Enterprises
