Slide 1

According to the provisions of MSMED Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:1.Manufacturing Enterprises

Introduction

EnterprisesInvestment in equipmentMicro Enterprises Does not exceed ten lakh rupeesSmall EnterprisesMore than ten lakh rupees but does not exceed two crore rupeesMedium EnterprisesMore than two crore rupees but does not exceed five core rupees

2. Services Enterprises

PERFORMANCE AND CONTRIBUTION OF MSMEs.46 Million MSMEsMSMEs106 Million Employment40% Exports45% industrialproductionMore than 95% industrial units belong to MSMEsOne of the biggest employment generating sector.Contributes 8% to the current GDP and 40% of the total export.Total output till financial year 2011-12 was 18 Lakh crores approx.

Contribution to the EconomyWorks under the guidelines of MSMED Act,2006Current Minister of Micro, Small and Medium Enterprises isKalraj Mishra. 46.1 million MSMEs in India of which 7.3 million are the manufacturing enterprises and 18.8 million service enterprises.Number of women and rural enterprises are 2.1 million and 14.2 million respectively.

Facts and FiguresAt Central LevelMinistry of MSMES.Small Industries Development Bank of India.National Small Industries Corporation.Khadi and Village Industries Commission.

Industry AssociationsNGOSBanks/Financial Institutions.

OthersAt State LevelState Finance Corporation.Technical Consultancy Organisations.State Industrial development Corporation.District Industries Centres.MSMES

Financial SupportPlays a vital role in the economic and social development of the country.Produces a variety of products and services.

The labour intensity of the MSME sector is very high.Provides employment at low capital cost.Helps in Industrialisation of rural and backward areas.Contributes enormously to the socioeconomic development of the country. AdvantagesBudget 2014 and MSMEsRs 10,000 crores allocated to SMEs.Setting up of a Technology Development Fund with a corpus of Rs 100 crore

Proposes to form a committee to give concrete suggestions to the government on the wider issues affecting the operation of the MSMEs in IndiaLiberalized the much-talked about FDI in the e-Commerce sector

Lenskart - Success StoryIncepted in 2010, 300% increase in its turnover.Only dedicated e-retailer of eyeglasses, sunglasses and contact lenses.StrategiesWord of mouth marketingManaging customer retentionUse of social media platformsPrompt deliveries, 14-days no-questions-asked return policy, Convenient payment options Unbeatable prices.

MSMEs to transform youthState of the Urban Youth, India 2012: Employment, livelihood, skills a report published by IRIS knowledge Foundation in collaboration with UN-HABITATThe current workforce at the all India level is 47.2 crore.Contribution to growth, innovation and jobs Major drivers of innovation and employment.International Cooperation ProgrammeProvides exposure to MSMEs to the latest technologies, manufacturing practices prevalent in their fields in different countries.Encourages their participation in international exhibitions for exports.ChallengesLack of credit from banksCompetition from multinational companiesPoor infrastructureLack of distribution of marketing channelsLack of advanced technologyLack of training and skill development programs Capital Management - fails to factor in the opportunity cost - Penny wise pound foolish

Suggestions For ImprovementSufficient availability of the creditTraining and development, awareness programsProper research and developmentDetermination of technological needsConstitution of a Panel of ConsultantsRelaxation in labor laws and red tape