MSME SECTOR – ENGINE FOR SOCIO ECONOMIC GROWTH AND EMPLOYMENT GENERATION
- MSME sector plays a crucial role in providing large employment opportunities at comparatively lower capital cost. MSMEs also help in industrialization of rural & backward areas, thereby, reducing regional imbalances. MSME sector has emerged as an engine for socio economic growth.
- The Micro Small Medium Enterprises Development (MSMED) Act 2006 enacted by Central Government seeks to facilitate the development of these enterprises, enhance their competitiveness and provides a legal framework for recognition of both manufacturing and services entities.
- Khadi and Village Industries development, which is being looked after by Khadi and Village Industries Board would also be supported as part of the MSME sector.
STATES'S APPROACH TO MSME SECTOR DEVELOPMENT
- The State recognizes that different stages of MSMEs have different needs. MSME growth can be broadly classified into five stages – Ideating a Business, Starting a Business, Growing a Business, Reviving a Business and Exiting a Business. The policy will address various needs that emerge in these stages.
- The Policy is not merely subsidization of factors of production but growth and performance oriented. The policy will strengthen the state institutions to support a smart MSME Ecosystem driven by efficiency and innovation.