brief note on micro small and medium small industries in employment generation?
Answers
Answered by
0
For a country to grow, the government should actively promote business enterprises. Among business enterprises, the Micro, Small and Medium Enterprises (MSME) deserve special attention. Though MSMEs are small investment enterprises, but their contribution to the Indian economy is very significant.
What are MSMEs?

Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which was notified on October 2, 2006, deals with the definition of MSMEs. The MSMED Act, 2006 defines the Micro, Small and Medium Enterprises based on
the investment in plant and machinery for those engaged in manufacturing or production, processing or preservation of goodsandthe investment in equipment for enterprises engaged in providing or rendering of services.
The guidelines with regard to investment in plant and machinery or equipment as defined in the MSMED Act, 2006 are:

Note: The investment in plant and machinery is the original cost excluding land and building and other items specified by the Ministry of Small Scale Industries vide its notification no. S.O. 1722 (E) dated 05.10.2006.
List of enterprises that are engaged in providing or rendering services
The illustrative lists of enterprises that are engaged in providing or rendering services are:
Small road and water transport operators (original investment in vehicles up to Rs.200.00 lacs under Priority sector)Retail trade (with credit limits not exceeding Rs.20.00 lakhs)Small business (whose original cost price of the equipment used for the purpose of business does not exceed Rs.20.00 lakhsProfessional and self-employed persons (whose borrowing limits do not exceed Rs.10.00 lakhs of which not more than Rs.2.00 lakhs should be for working capital requirements except in case of professionally qualified medical practitioners setting up of practice in semi-urban and rural areas, the borrowing limits should not exceed Rs.15.00 lakhs with a sub-ceiling of Rs.3 lakhs for working capital requirements)
Significance of MSMED Act 2006
With the enactment of MSMED Act 2006, the paradigm shift that has taken place is the inclusion of services sector in the definition of Micro, Small and Medium Enterprises, apart from extending the scope to Medium Enterprises.
Share of MSMEs in India
The Micro, Small and Medium Enterprises occupies a strategic importance in terms of output (about 45% of manufacturing output), exports(about 40% of the total exports) and employment (about 69 million persons in over 29 million units throughout the country) based on the Planning Commission, 2012. It is observed worldwide that as income increases the share of the informal sector decreases and that of the formal SME sector increases.
What are MSMEs?

Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which was notified on October 2, 2006, deals with the definition of MSMEs. The MSMED Act, 2006 defines the Micro, Small and Medium Enterprises based on
the investment in plant and machinery for those engaged in manufacturing or production, processing or preservation of goodsandthe investment in equipment for enterprises engaged in providing or rendering of services.
The guidelines with regard to investment in plant and machinery or equipment as defined in the MSMED Act, 2006 are:

Note: The investment in plant and machinery is the original cost excluding land and building and other items specified by the Ministry of Small Scale Industries vide its notification no. S.O. 1722 (E) dated 05.10.2006.
List of enterprises that are engaged in providing or rendering services
The illustrative lists of enterprises that are engaged in providing or rendering services are:
Small road and water transport operators (original investment in vehicles up to Rs.200.00 lacs under Priority sector)Retail trade (with credit limits not exceeding Rs.20.00 lakhs)Small business (whose original cost price of the equipment used for the purpose of business does not exceed Rs.20.00 lakhsProfessional and self-employed persons (whose borrowing limits do not exceed Rs.10.00 lakhs of which not more than Rs.2.00 lakhs should be for working capital requirements except in case of professionally qualified medical practitioners setting up of practice in semi-urban and rural areas, the borrowing limits should not exceed Rs.15.00 lakhs with a sub-ceiling of Rs.3 lakhs for working capital requirements)
Significance of MSMED Act 2006
With the enactment of MSMED Act 2006, the paradigm shift that has taken place is the inclusion of services sector in the definition of Micro, Small and Medium Enterprises, apart from extending the scope to Medium Enterprises.
Share of MSMEs in India
The Micro, Small and Medium Enterprises occupies a strategic importance in terms of output (about 45% of manufacturing output), exports(about 40% of the total exports) and employment (about 69 million persons in over 29 million units throughout the country) based on the Planning Commission, 2012. It is observed worldwide that as income increases the share of the informal sector decreases and that of the formal SME sector increases.
Similar questions