MSME stands for Micro, Small and Medium Enterprises. MSME contributes 8 % of country’s GDP. Nearly 60 Million people are employed through MSMEs. In India, the youth is energized with intellectual capabilities.India needs to promote better business climate to take advantage of youth age factor. The Indian government has already initiated taking steps providing subsidies and incentives to promote business as a career option rather than job career. Entrepreneurs are assisted from various ministries for a stable beginning. What government aims is to provide MSME Schemes under one roof. Entrepreneurs should be provided with full information so as to receive maximum benefits of subsidies. This would enhance productivity, expansion, modernization.
SME Division scheme for providing financial assistance on international cooperation.
Prime minister’s Employment Generation Programme provides financial assistance to micro enterprises costing up to Rs. 10 Lakh in the service sector and Rs. 25 Lakh in the manufacturing sector.This assistance is availed in the form of subsidy.
Promotional Package includes credit and fiscal support, infrastructure, technology, and marketing support. It also provides support to women entrepreneurs.
- Credit Guarantee Scheme provides relief to those micro and small enterprises that are unable to pledge collateral security to obtain loans. Collateral free loans up to a limit of 50 lakh for individual MSMEs.
- Entrepreneurship and Skill Development – various government ministries hold development programs at utmost stage increasing the overall productivity of MSMEs.
- Rajiv Gandhi Udyami Mitra Yojna– This Yojna provides support to new micro and small enterprises through handholding of first potential entrepreneurs. Udyami helpline gives guidelines on how to start a business assessing loans from banks.
- Performance and Credit Rating Scheme – government launched this scheme to encourage MSEs to maintain the good financial record in order to earn higher rating for their credit requirements.
- Financial assistance on Bar Code – Barcodes are series of black lines and white spaces on product packages. In order to enhance marketing competitiveness, Ministry of MSME provides financial assistance for reimbursement of 75 % of one-time registration fee w.e.f. 1st January 2002 and 75 % of the annual recurring fee for first three years w.e.f. 1st June 2007 paid by MSME for using bar coding.
Moreover, financial assistance up to Rs. 10 Lakh for copier, computers, travel expenses etc. is provided to strengthen the role of MSMEs. The Indian government is making every step possible to enhance the awareness regarding its schemes throughout the nation.
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