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Micro, Small and Medium Enterprises (MSMEs) have been recognised as one of the most important sectors for the development of any economy all over the world. This sector constitutes more than 80% of all business organisations all over the world. In India

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Introduction

1.INTRODUCTION MICRO , SMALL AND MEDIUM ENTERPRISES (MSME) Micro, Small and Medium Enterprises (MSMEs) have been recognised as one of the most important sectors for the development of any economy all over the world. This sector constitutes more than 80% of all business organisations all over the world. In India too, its share is more than 90 %. This sector ensures that the processes of economic growth in our country are inclusive, employment-friendly and they contribute to greater regional balance in levels of development. During the last decade alone, the MSME sector has progressed from the production of simple consumer goods to the manufacture of many sophisticated products like T.V. Sets, micro-ware components, electro-medical equipment etc. Product range varies from simple items produced with traditional technology to high-tech products, produced with sophisticated state of the art technology. Other than this, the micro, tiny and small scale sector have been engaged in the production of goods like wood products, hosiery and garments, cotton textiles, beverages and tobacco products, food products, jute textile, leather & leather products, transport equipments etc. These industries produce over 7500 commodities. Understanding the importance of this sector the government has brought about the enactment of the Micro, Small and Medium Enterprises Development Act. To strengthen this important sector and to create more national awareness about its growing importance in our national economic life government has also introduced comprehensive Package for Promotion of Micro and Small Enterprises a National Commission for Enterprises in the Unorganized Sector have been set up.The contribution of MSME towards inclusive growth compromises a greater percentage. 1.1 Inclusive Growth 'India' is the new global buzzword. The economy growing at a phenomenal rate, combined with a flourishing democracy is making people sit up and take notice across the world. India's post 1990's economic growth has made it one of the world's fastest growing economies in the world. Their GDP growth rate of up to about 9% in the last few years is historically unparalleled except by the neighboring China. ...read more.

Middle

* Nursing the sick units :- Debt Restructuring Mechanism. * Facilitative measures. * Encouragement of CGTMSE scheme. * Cluster based approach. * Setting up of watchdogs: Monitoring & Review RBI instructed all banks to formulate a comprehensive and more liberal policy for MSME financing taking into account following guidelines as indicative minimum:- 1. Disposal of applications within 2 or 4 week as applicable. 2. Loan application register is to be maintained at branches. 3. Issue of Acknowledgement of Loan Applications 4. Rejection of applications not to be done without the approval of the next higher authority 5. Photo of Borrowers: Free of cost for weaker section 6. Collaterals are not require up to 100 lac. 7. Composite loan up to 100 lacs through single window. 8. Specialised financing branches renames as SME branches. 9. Norms for computation of limits up to 5.00 crore working capital by turnover method. Since December, over 38500 accounts of MSMEs have been restructured. The interim budget has extended the 2% interest rate subvention in shipment credit up to the end of the second quarter of the next fiscal. The size of refinance facility with SIDBI has been increased by Rs. 10,000 crore. The Central Government is ensuring that the MSME Act, of making payments within 45 days, is being implemented. Most banks have set up special SME care centres. The Government on the other hand claims that the problems being faced by MSMEs are being thoroughly addressed. 3.1 Supporting Agencies of Government For MSME's * MSME Board * MSME Development Organization * MSME Development Institutions * MSME Technology Development Centers * MSME Testing Centers and MSME Testing Stations * MSME Tool Rooms/Tool Design Institutes * Entrepreneurship Development Institutes * National Small Industries Corporation * Small Industrial Development Bank of India (SIDBI) * Khadi & Village Industries Commission (KVIC) For strengthening the delivery of credit to the MSMEs, the Government announced a 'Policy Package for Stepping up Credit to SMEs so as to double the credit flow to this sector within five years. ...read more.

Conclusion

In the current environment, technology is proving to be a strategic weapon to beat competition. Companies that adopt technology early in the life cycle will be well placed to impress their customers and show that they are different as compared to their competition. There is a feeling among SMEs that adopting technology is costly and capital intensive. Often this deters the SMEs, believing the investments are very high and prohibitive. This is not entirely true. One of the ways the SMEs can manage this is by using open source tools and technologies that are freely available. There is a feeling among SMEs that adopting technology is costly and capital intensive. Often this deters the SMEs, believing the investments are very high and prohibitive.This is not entirely true. One of the ways the SMEs can manage this is by using open source tools and technologies that are freely available. In the current day environment, it is critical that SMEs look at adopting technology to gain competitive advantage. Cost effective mechanisms are available which the SMEs can consider to make the technology journey less strenuous on budgets. Also, SMEs should work with Technology Partners to make this journey smooth and effective. CONCLUSION Micro, small and medium enterprises (MSMEs) collectively function as the fulcrum of the national economy, accounting for the bulk of industrial output, exports and employment. They play a vital role in changing the industrial scenario and strengthening the industrial sector tremendously. They assist the utilization of assets for productive purposes with minimal initial resources. SSIs have contributed greatly in nurturing private enterprise and in hastening the economic development by generating employment, exports, and reducing local unevenness. The Government of India should consider the MSMEs as an important pillar of economic growth and should support the sector with proactive and growth oriented policies. This can have wider impact on national economies since MSMEs are the engines of economic growth . REFERNCES: 1. www.smetimes.tradeindia.com/smetimes/.../additional-measures-required-for-sme-sector.html 2. www.business-standard.com/india/news/...base-rate...to...msme.../on 3. SME Bussiness May-2010 4. www.msme.gov.in 5. www.msmefoundation.org 6. ssi.nic.in 7. www.iloveindia.com/finance/.../small-scale-industries.html 8. www.nickmutt.com/small-scale-industries-in-india.htm 9. http://www.industries.org.in/industry-sectors.htm 10. www.innovationclusters.org ?? ?? ?? ?? MBA113(SCIM) Page 1 ...read more.

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