SISI & MSME

Small Industries Service InstituteSmall Industries Service Institute

Introduction - MSMEIntroduction - MSME

bull Major plank of Indiarsquos Economic Development

bull Strategic Importance due to contributions in terms of Output Export amp Employment

bull To sustain amp accelerate growth MSME sector needs to be thoroughly competitive

IntroductionIntroduction

MSMErsquos are supported by Govt of India amp its agencies as

Ministry of MSME National Small Industries Corporation Small Industries Development Bank District Industries Centre

For Modernization Productivity Technological Needs Skill Development amp Up gradation Adequate amp Affordable assistance in Finance

Classification of MSMErsquosClassification of MSMErsquos

Manufacturing Service

Micro Enterprises Rs 1 Lakh to 25 Lakhs Rs 10 Lakhs

Small Enterprises Rs 25 Lakhs to 5 Crores

Rs 10 Lakhs to Rs 2 Crores

Medium Enterprises Rs 5 Crores to 10 Crores

Rs 2 Crores to Rs 5 Crores

5

Importance of SMErsquosImportance of SMErsquos

bull Labor Intensivebull Short gestation periodbull Lowest Administrative costbull Maximum potential for employment generationbull Assist decentralization of powerbull Induce growth of industrially backward regions

ensuring balanced regional development

Mechanism for promotion amp Mechanism for promotion amp developmentdevelopment

bull 1048708 Federal Government responsible for policy creditbull flow centrally sponsored schemesbull 1048708 State Governments responsible for implementationbull infrastructure development and monitoringbull 1048708 Capacity building training consultancy supportbull technology demonstration amp transfer databull compilation amp maintenance and marketing supportedbull by Federal Government as well as State Governments

MSME- INDIAN SCENARIOMSME- INDIAN SCENARIO

bull Current 5 Year Plan (2007-2012)

bull bullMSMEs to grow 13 per annumbull amp to generate additional 13 million jobsbull per annum


bull India a large country with federal structurebull Population in excess of one billionbull Planned economybull Liberalized economy since 1991bull Lowering of tariff barriers amp onset of globalizationbull Govt interventions and assistance programmes began in

1950sbull MSME now a vibrant sector

HISTORY OF MSMEHISTORY OF MSME

1948-1991- Recognition was given to the micro and small enterprises to

expand employment opportunities help ensure equitable distribution of the national income and facilitate effective mobilization of private sector resources of capital and skills

SIDO was setup in 1954 as an apex body for MSME NSIC KVIC and Coir Board Setup in 1956 MSME were set up all over India to train youth in

skillsentrepreneurship Tool Rooms were established with German and Danish assistance

for providing technical services essential to MSEs as also for skill-training

Continued

1991-1999- The new Policy for Small Tiny and Village Enterprises of August

1991 laid the framework for government support in the context of liberalization which sought to replace protection with competitiveness to infuse more vitality and growth to MSEs in the face of foreign competition and open market

Testing Centers were set up for quality certification and new Tool Rooms as well as Sub-contracting Exchanges were established

The Small Industries Development Bank of India (SIDBI) and a Technology Development and Modernization Fund were created to accelerate finance and technical services to the sector

Continued1999 Onwards- The Ministry of MSME [earlier known as Ministry of Small Scale Industries and

Agro amp Rural Industries (SSI amp ARI)] came into being from 1999 to provide focused attention to the development and promotion of the sector

A Credit Linked Capital Subsidy Scheme was launched to encourage technology up gradation in the MSE sector and a Credit Guarantee Scheme was started to provide collateral-free loans to micro and small entrepreneurs particularly the first generation entrepreneurs

In 2006 the long-awaited enactment for this sector finally became a reality with the passage of the Micro Small and Medium Enterprises Act

In March 2007 a third Package for the Promotion of Micro and Small Enterprises was announced which comprises the proposalsschemes having direct impact on the promotion and development of the micro and small enterprises particularly in view of the fast changing economic environment wherein to be competitive is the key of success

Training Institutes of MSMETraining Institutes of MSME

National Institute of Micro Small and Medium Industry Extension Training (NIMSMIET) Hyderabad

National Institute for Entrepreneurship and Small Business Development (NIESBUD) New Delhi which conducts national and international level training programmes in different fields and disciplines

Indian Institute of Entrepreneurship (IIE) Guwahati The main objective of the institute is to act as a catalyst for entrepreneurship development with its focus on the North East

Other Agencies Associate with MSMEOther Agencies Associate with MSME

National Small Industries Corporation (NSIC) for technology and marketing support

Small Industries Development Bank of India (SIDBI) an apex bank set up to provide directindirect financial assistance under different schemes to meet credit needs of the small-scale sector and to coordinate the functions of other institutions in similar activities

Khadi and Village Industries Commission (KVIC) assists the development and promotion and disbursal of rural and traditional industries in rural and town areas

Services provided by MSMEServices provided by MSME Technical Consultancy Services Managerial Consultancy Services Economical Investigation Services Entrepreneurial Development Programme Economical Investigation Services Ancillary Development Programmes Marketing Assistance and Service Export Promotion Services Modernization Up gradation of Technology Assistance to Rehabilitation of sick units Common Facility amp Training (1 Day to 30 Days with certificates) Assistance to State Govt Agencies

Benefits of MSMErsquosBenefits of MSMErsquos

Production and Services

Encouraging self employment

Opportunity

Training Programmes

INDIAN MSME AREAS OF INDIAN MSME AREAS OF COOPERATIONCOOPERATION

Fee-based consultancy services and training Establishment of Turnkey Projects for setting up manufacturing MSMEs on CAM Decommercial termsConducting surveys and studies to identify the tooling and related skill requirements in specific areas or regions like hillybackwardindigenousProviding turnkey assistance to set up Tool Rooms amp Training CentersProviding consultancy to existing manufacturing SME in upgrading their production facilities selection of machine tools design consultancy for toolsmoulds dies jigs amp fixtures etc

Continued Providing consultancy to existing manufacturing SME in

upgrading their production facilities selection of machine tools design consultancy for tools moulds dies jigs amp fixtures etc

Providing consultancy to existing training institutes in course design and curriculum development including trainers training programmes

Assistance in product design tool design and manufacturing of intricate toolings

Product development amp rapid prototyping services

International Co-operation of MSME

Formulation of industrial development policies to facilitate accelerated growth of small industries based upon local resources and markets

Identification of industrial opportunities including ascertaining their commercial viability based upon local consumption or exports

Project Development including preparation of project profiles for the identified opportunities to facilitate promotion of such industries

Agency to Agency co-operation

Continued Identification of technology and equipments for setting of identified

industries based upon localexport market requirements of volume quality etc

Training for technology levels covering skill development management upgradation technological upgradation and entrepreneurship development including training of trainers

Infrastructure development particularly in the form of industrial assistance for scientific and economic development of small enterprises

General consultancy covering all aspects of industrial development Past expertise of SIDO in assisting SMEs programmes in other

countries

FindingsFindingshellip

Targets given by ministry to each office for conducting training

1-30 Days training schemes offered Assistance for Loan procedures in the course of nationalized

banks Registration with DIC (District Inventory Centre) 15 subsidy provided by Government on Bank loans Submission of Project Report for Application of Loan Credit Guarantee Fund Trust (CGFT) for Micro amp Small

Enterprises Prime Minister of Rojgar Yojana

Conthellip Investment slab change has to be informed to MSME Fixed Quota of Bank to Give Loans with MSME Entrepreneurs Memorandum need to be written with application Prior 2006Companies Registered on SISI needs to be Registered on

MSME World Trade Fair ndash Purchase and Seller meet (Reimbursement on

Packaging and Travelling Expenses) Reimbursement of ISO 900014000 Registration Reimbursement for Bar-coding 10 Reservation in Special Economic Zone for MSME (Safal Udyojak Award) National Award to the most Successful

Organisation (price of 1 lakh Cash Price)

Slide 1

Introduction - MSME

Introduction

Classification of MSMErsquos

Importance of SMErsquos

Mechanism for promotion amp development

MSME- INDIAN SCENARIO

Slide 8

HISTORY OF MSME

Continued

Slide 11

Training Institutes of MSME

Other Agencies Associate with MSME

Services provided by MSME

Benefits of MSMErsquos

INDIAN MSME AREAS OF COOPERATION

Slide 17


Slide 19

Findingshellip

Conthellip

Introduction - MSMEIntroduction - MSME

bull Major plank of Indiarsquos Economic Development

bull Strategic Importance due to contributions in terms of Output Export amp Employment

bull To sustain amp accelerate growth MSME sector needs to be thoroughly competitive












5


















Continued






















Opportunity

Training Programmes


















countries










Slide 1

Introduction - MSME

Introduction





Slide 8

HISTORY OF MSME

Continued

Slide 11






Slide 17


Slide 19

Findingshellip

Conthellip












5


















Continued






















Opportunity

Training Programmes


















countries










Slide 1

Introduction - MSME

Introduction





Slide 8

HISTORY OF MSME

Continued

Slide 11






Slide 17


Slide 19

Findingshellip

Conthellip















Continued






















Opportunity

Training Programmes


















countries










Slide 1

Introduction - MSME

Introduction





Slide 8

HISTORY OF MSME

Continued

Slide 11






Slide 17


Slide 19

Findingshellip

Conthellip


















Opportunity

Training Programmes


















countries










Slide 1

Introduction - MSME

Introduction





Slide 8

HISTORY OF MSME

Continued

Slide 11






Slide 17


Slide 19

Findingshellip

Conthellip


















countries










Slide 1

Introduction - MSME

Introduction





Slide 8

HISTORY OF MSME

Continued

Slide 11






Slide 17


Slide 19

Findingshellip

Conthellip










Slide 1

Introduction - MSME

Introduction





Slide 8

HISTORY OF MSME

Continued

Slide 11






Slide 17


Slide 19

Findingshellip

Conthellip

SISI & MSME

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Transcript of SISI & MSME