Given
its meaning we all know, MSME is considered as an important and crucial part of
any growing economy. In the recent times, it has become a great contributor to
India’s development. This was possible only under the apex’s jurisdiction of
providing numerous benefits to small scale units or medium, small and micro
enterprises. Considering the provisions of MSMED Act, 2006 the MSME was
classified in two categories: Manufacturing Enterprises- which is defined in
terms of investment in plant & machinery and Service Enterprises- defined
in terms of investment in equipment.
Budget
2018 gave an impetus to create opportunities in this sector. In this context,
cutting corporate tax rate to 25% would leave these MSMEs with more investable
resources. With this, it will not only help them with their other investments
and expansion activities, but also it is likely to increase their payables
towards R&D, necessary for ever-growing competition. And with the motto of
the MUDRA scheme “funding the unfunded”, a provision of Rs.3 trillion under the
scheme and an additional provision of Rs.3,794 crore for credit and capital
support, interest rate subsidy and promotion of new innovations are going make
this sector flourish.
MSME
recently received a gift from PM Narendra Modi as he initiated the launch of
MSME Support and Outreach Program along with other key programs. This program is
targeted to help in growing, expanding and facilitating MSMEs across the
country with its 12 key initiatives including access to credit, access to
market, technology upgradation, ease of doing business, sense of security for
employees, etc.
Khadi,
our heritage product comes from the very foundation of Khadi and village
industries, which has a strong customer base among the middle and upper
sections of the society. Another example- Coir industry which is well known for
its environment friendly image has given a boost to the export sector through
use of advanced technology and diversified product base. MSMEs not only play a
crucial role in improving the employment conditions but also real development
can be seen in rural and backward areas. Being a labor-intensive sector, MSMEs
currently require a more flexible and inclusive environment for them to grow
and invest, create jobs and revive demand in the economy.
Thank You
Regards
Author - Ananya Chakraborty
Kautilya
IBS Mumbai
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