Vikram singh

Small and medium
Scale Enterprise
in
India

Sour htp:/msme.gov
ce: t / .in/ 2 0 .0 3 .1

SMALL AND MEDIUM SCALE
ENTERPRISES

DEFINITION OF SME :

 SME is the abbreviation for Small and Medium
Enterprises.
 These enterprises can be rightly called as the
backbone of the GDP of India.
 The SME sector in India is growing at an
exceptionally fast rate due to which it is proving to be
beneficial to the Indian Economy.”

DEFINITION OF SME IN INDIA IN CONTEXT OF
MANUFACTURING INDUSTRIES:

DESCRIPTION INR USD

MICRO ENTERPRISE UPTO 25 LAKH UPTO $62500

SMALL ENTERPRISE ABOVE 25LAKH—AND ABOVE $62500 AND
UPTO 5CRORE UPTO $1.2 MILLION
MEDIUM ENTERPRISE ABOVE 5 CRORE AND ABOVE $1.25 MILLION
UPTO 25 CRORE AND UPTO $2.5
MILLION

SERVICE ENTERPRISE

DESCRIPTION INR USD

MICRO ENTERPRISE UPTO 10 LAKH UPTO $ 25000

SMALL ENTERPRISE ABOVE 10 LAKH—2 ABOVE $25000—UPTO
CRORE $ 0.5 MILLION
MEDIUM ENTERPRISE ABOVE 2 CRORE– 5 ABOVE $ O.5
CRORE MILLION--
$1.5MILLION

Micro enterprise:- An enterprise where investment in plant and
machinery [original cost excluding land and building and the items
specified by the Ministry of Small Scale Industries] does not
exceed Rs.50 lakh.

Small enterprise:-An enterprise where the investment in plant and
machinery [original cost excluding land and building and the items
specified by the Ministry of Small Scale Industries] is more than
Rs.25 lakh but does not exceed Rs.5 crore.

Medium enterprise:- medium enterprise is an enterprise where the
investment in plant and machinery [original cost excluding land
and building and the items specified by the Ministry of Small Scale
Industries] is more than Rs.5 crore but does not exceed Rs.10
crore.

TYPE’S OF SME’S
SMEs have been established in almost all-major
sectors in the Indian industry such as:
· Food Processing
· Agricultural Inputs
· Chemicals & Pharmaceuticals
· Engineering; Electricals; Electronics
· Electro-medical equipment
· Textiles and Garments
· Leather and leather goods
· Meat products
· Bio-engineering
· Sports goods
· Plastics products
· Computer Software, etc.

FIGURE’S ABOUT SME’S
 The Indian SME market is worth $5 billion.
 There are over 11 million SME units in India that
produce more than 8,000 products.
 SME's Contribution towards GDP in 2011 was
17% which is expected to increase at the rate of
22% by 2012.
 SMEs are the fountain head of several innovations
in manufacturing and service sectors, the major
link in the supply chain to corporate and the PSUs.
By promoting SMEs, the rural areas of India will be
developed.

IMPORTANCE OF SME’S

 Employment generation.
 Use of local resources.
 Balanced regional development
 Promoting exports
 Efficient use of productive factors.

BENEFITS OF REGISTERD SME’S

 Credit benefits
 Exemptions under direct tax laws
 Incentives and concession in power tariffs
 Price and purchase preference of goods produced.

ROLE OF SME’S IN THE GROWTH
OF INDIAN ECONOMY

35% 40%
T A OUT OFINDIA
OT L PUT
INDUST IA E T
R L XPOR

60 MN 1.3 MN
E PL M NTG NE T D
M OY E E RAE
J PE Y A
OB R E R

8000 90%
QUAIT PR
L Y ODUCTG NE AE BYT MF INDIA A
E R T D HE OR N ND INDUST IA UNITININDIA
R L
INT R T LM R T
E NAIONA A KE

REASON BEHIND SURVIVAL & GROWTH
OF SME’S IN INDIAN ECONOMY


 Govt. policy, tariff and easy loan with low interest
rate for SME’S in help to grow these enterprises.
 Foreign and local fund providers are taking huge
interest in the small and medium enterprises of India.
 Banking sector has also shown a keen interest in
lending credit to these enterprises.
 Recent mergers have taken place in the sector.
 The sector has significantly contributed towards the
domestic production as well as the export earnings.


 Low investment is required to start and maintain
these enterprises.
 The sector has contributed impressively towards
job creation and increase in individual incomes.
 Technological growth is also a factor for growth of
SME's in India as there are several trade portals
and “ BUISNESSESS DIRECTORIES “ available
online with huge database of buyers, sellers,
manufacturers who are basically back bone of
SME's.

CHALLENGE AHEAD FOR SME’S

 Infrastructure needs to be developed for setting
up the SMEs in the rural sector of the country.
Transportation, electricity and communication are
the main parts of the infrastructure required.
 Technology need to be evolved so that quality
products are manufactured by the sector.
 Lack of information about the inputs, including
raw material, machinery and skills, is one critical
challenge in front of the owners of these
enterprises.
 High level of research and development is
required.

GOVT. DEPARTMENT FOR SME’S IN INDIA
 Small & Medium Business Development Chamber of
India
 Msme govt of india
 India International Trade Centre (IITC-India)
 Europe-India SME Business Council (EISBC)
 Maharashtra Industrial and Economic Development
Association
 SME Export Promotion Council
 Indian Young Entrepreneurs’ Forum
 SME Training Institute of India
 SME Technology Development Council

SCHEME OF GOVT. OF INDIA FOR SME’S

 Rajiv Gandhi Udyami Mitra Yojna ( RGUMY)
 Marketing Assistance ( Bar Code)
 Skill Development
 Export Promotion
 Infrastructural Development
 National Awards
 Credit Guarantee Scheme

SCHEME OF GOVT. OF INDIA FOR SME’S

 ISO 9000/14001 Certification Fee Reimbursement
Scheme
 Micro & Small Enterprises Cluster Development
Programmed
 Credit Linked Capital Subsidy Scheme
 Intellectual Property Rights for MSMEs
 Quality Management Standards/Quality Technology
Tools

RAJIV GANDHI UDHAMI MITRA
Rajiv Gandhi Udyami Mitra Yojna ( RGUMY)
Rajiv Gandhi Udhyami Mitra Yojna (RGUMY) is to
provide handholding support and assistance to the
potential first generation entrepreneurs who have
already successfully completed EDP/SDP/ESDP/VT
programmes, through the selected lead agencies i.e.
‘Udyami Mitras” in the establishment and management
of the new enterprises in dealing with various procedural
and legal hurdles and in completion of various
formalities required fo setting up and running of the
enterprise
Udyami Mitras :
Under RGUMY, financial assistance would be
provided to the selected lead agencies i.e. Udyami
Mitras for rendering assistance and handholding support
to the potential first generation entrepreneurs.

MARKETING ASSISTANCE/SUPPORT TO
MSES (BAR CODE)

T obj iv oft scheme is t popul r t Ba code regist aion a mot ae t
he ect e his o aize he r r t nd iv t he
smala micro ma ct ingent pr t a t Ba Code Cerificaion on l rge
l nd nufa ur er ises o dopt he r t t a
scae a t sel t v l a product w l ide a ena e higherexpor pr
l nd o l heir aue dded s ordw nd bl t ice
reaizaion Itaso hel in domest maket (w esae &ret il 75% ofa lfee (
l t l ps ic r ing hol l a ). nnua
recuring)ofBa Code Cerificaion fort fir t yeas a reimbur t M
r r t t he st hree r re sed o SEs
undert scheme.
he

SKILL DEVELOPMENT

W h a obj iv t creae sel empl
it n ect e o t f oyment t ent , he repreneur a skil dev opment
ship nd l el
scheme is impl ed byOffice oft DC(SM ’S)t
ement he E hrough it net or of59M E_ DIS
s wk SM
a t br nches,. T progr ms a conduct incl Ent
nd heir a he a re ed ude repreneur Dev opment
ship el ,
Entrepreneur a Skil Dev opment M na
ship nd l el , a gementDev opmenta Business Skil
el nd l
Dev opment T progr m a conduct forunempl yout a instanomina fee
el . hese a re ed oyed h ga l
a in some ca st is aso prov
nd ses ipend l ided.

INFRASTRUCTURE DEVELOPMENT
Forsetingup ofindustia est t a t dev op infr stuct fa it l pow distibut net or
t r l aes nd o el a r ure cil ies ike er r ion w k,
w t t ecommunicaion, dr ina a polut cont fa it roa ba r wmaer l st a
aer el t a ge nd l ion rol cil ies, ds, nks, a t ia, or ge
a maket outet common ser ices fa it a t
nd r ing l s, v cil ies nd echnol lba up ser ices et forM Es, t
ogica ck v c. SM he
int aed Infr st uct a Dev opment(IID)Scheme w s l unched in 1994 t scheme cov s r a a
egr t a r ur l el aa . he er ur l s
w la ur n a s w h aprov of50 reser aion forr a a s a 50 industia pl s a t be
el s ba rea it ision % vt ur l rea nd % r l ot re o
reser ed fort micro ent pr T scheme aso prov up gr daion/ rengt
v he er ises. he l ides a t st hening oft he
infr stuct a fa it in t exist industia est t T est t costt setup a IID Cent is R
a r ur l cil ies he ing r l aes. he imaed o n re s.
5 Crore. Centa Gov nmentprov 4 % in ca ofgener lst t a up t 8 % forNorh Ea
r l er ided 0 se a aes nd o 0 t st
R egion, J H.Pa Utr kha a gr nta rema a
&K, . nd t a nd s a nd ining mountcoul be l n fro SIDBI/ nk/ ncia
d oa Ba Fina l
Inst ut ort st t Funds.
it ions he ae

CREDIT GUARANTEE SCHEME

T ensure beterfl ofcreditt micro a smalent pr byminimizingt r
o t ow o nd l er ises he isk
percept ofba fina linst ut in l
ion nks/ ncia it ions endingw houtcolaer lsecur y t
it lt a it , he
Gov nmentl unched CreditGuaa ee Fund Scheme forSM ’Sin A 20 0. t
er a r nt E ugust 0 his
scheme cov s colaer l-free creditfa it ext
er l t a cil y ended byel e l
igibl endinginst ut t
it ions o
newa exist SM ’Sforl n upt R 10 l kh perbor ingunit T guaa ee
nd ing E oa o s. 0 a row . he r nt
cov is upt 75% oift creditsa ioned (8 in respectofl ns upt R 5 l kh a
er o he nct 5% oa o s. a nd
8 % forl ns prov t SM ’Sow / aed byw a all ns in t Norh
0 oa ided o E ned oper t omen nd l oa he t
Ea R )
st egion

ISO 9000/14001 CERTIFICATION FEE
REIMBURSEMENT SCHEME

T enha t compet iv st h oft SM ’S, t Gov nmentint
o nce he it e rengt he E he er roduced a
scheme t incent es t
o iv echnol lup gr daion , quait improv
ogica a t ly ementa beter
nd t
environmentma gementbyt SM ’S. T scheme reimbur 75% oft fees,
na he E he ses he
subj t ama
ect o ximum ofR 75,0 0-fora ingQuait M na
s. 0 / cquir l y a gementSyst em
(QM ISO90 0cerificaion a /orEnv
S)/ 0 t t nd ironmentM na
a gement(EM IS)14 0
S)? 0 1
cerificaion byt SM ’S.
t t he E

SME’S CLUSTER DEVELOPMENT
PROGRAMME

T M a SmalEnt pr Cl erDev opmentProgr mmme (SM ’SCDP)is
he icro nd l er ises ust el a E
impl ed forhol icdev opmentofcl er ofSM ’S. T progr mme env ges
ement ist el ust s E he a isa
mea forca cit buil skil dev opment t
sures pa y ding, l el , echnol up gr daion oft
ogy a t he
ent pr improv creditdel er , maket suppor, setingup ofcommon fa it
er ises, ed iv y r ing t t cil y
cent s et ba on dia ic st car outin consulaion w h cl erunit a
er c, sed gnost udies ried t t it ust s nd
t colect es a ma gementofcl erw fa it byt cl ercolect es.
heir l iv nd na ust - ide cil ies he ust l iv

CREDIT LINKED CAPITAL SUBSIDY
SCHEME
T CreditLinked Ca a SubsidyScheme
he pit l
(CL a a fa it t t
CSS) ims t cil aing echnol up-gr daion byprov 15% upfrontca a
ogy a t iding pit l
subsidyw 29th Sept
.e.f. ember, 20 5 t ma ct ingSM ’S, on inst ut lfina
0 o nufa ur E it iona nce
upt R 1 crore a a ed ofbyt forinduct ofw lest bl a improv
o s. v il hem ion el a ished nd ed
technol in t specified sub sect s/
ogies he or product a ed undert scheme.
s pprov he

INTELLECTUAL PROPERTY RIGHTS FOR
SME’S
T Scheme ha been l unched t ena e India
his s a o bl n
SM t at in gl ll der posit a t
Es o ta oba ea ship ion nd o
empow t in usingeffect el t t s of
er hem iv y he ool
Int l ua ProperyR s (IPR ofinnov t e proj s.
elect l t ight ) aiv ect
T ma feaures oft scheme a :-
he in t he re
Aa
w reness/ izaion Progr m on IPR
Sensit t a
Pil St forSel ed Cl er Groups ofIndusties
ot udies ect ust s/ r
Int a iv seminas/ or
er ct e r W kshops
Speciaized Ta
l r ining
A a forGr ntofPaentG R r t
ssist nce a t / I egistaion
Setingup ofIPF cil aion Cent (IPFC)
t a it t re
Int a ion w h Int naiona A
er ct it er t l gencies.

QUALITY MANAGEMENT STANDARDS &
QUALITY TECNOLOLGY TOOLS
Gov nmentofIndial unched ascheme, ‘Ena ing
er a bl
M nufa ur Sect be Compet iv t
a ct ing or it e hrough Quaitly
M na
a gementSt nda (QM a Quait T
a rds S) nd l y echnol ogy
T s (QT )I’ in ordert improv quait a
ool T o e l y nd
product it in t SM ’Ssect , T scheme is a a
iv y he E or he imed t
improv t quait oft product in t SM ’Ssect
ing he l y he s he E or
a incul t t Quait consciousness in t sect .
nd cae he l y his or
T maora iv ies undert scheme a
he j ct it he re
Orga nizingA a
w reness Ca igns forSM ’S
mpa E
Orga nizingCompet ion- ach (CWt
it Wt - ach)
Impl aion ofQuait M na
ement t l y a gementSt nda nd Quait T
a rdsa l y echnol T s in sel ed SM
ogy ool ect
M or Int naiona St M
onit ing er t l udy issions

DESIGN CLINIC SCHEME FOR SMES

T ma obj iv oft scheme is t br t SM sect a design experise int a
he in ect e he o ing he E or nd t o
common pl t m a t prov exper a ice a sol ions on rea t design
afor nd o ide t dv nd ut l ime
probl resulingin cont
ems, t inuous improvementa v l a ion forexist product
nd aue- ddit ing s.
Itaso a a v l a cost pl nned undert scheme incl creaion ofDesign
l ims t aue dded s a he ude t
Cl Secret r taongw h regiona cent s forint v ion on t design needs oft
inics aia l it l er er ent he he
SM sect .
E or

MARKETING ASSISTANCE AND TECHNOLOGY
UPGRADATION SCHEME FOR SMES

T obj iv oft scheme is t ident a encour ge t cl er ofSM w ha e
he ect e his o ify nd a hose ust s Es hich v
quait product a expor pot ia a a t t a e compet iv in t
ly ion nd t ent l nd ssist hem o chiev it eness he
naiona a int naiona maket T scheme a a improv t maket
t l nd er t l r s. he ims t ing he r ing
compet iv ofSM sect byimprov t t
it eness E or ing heir echniques a t
nd echnol for
ogy
pr mot ofexpors.
0 ion t

EXPORT PROMOTION
Expor promot for t SM sect ha been a
t ion m he E or s ccorded ahigh pr it .
ior y
T hel M in exporing t product t folow fa it incent es a
o p SEs t heir s, he l ing cil ies/ iv re
provided
Product ofSM a displ yed in int naiona exhibit a t expendit incur is reimbur by
s E re a er t l ion nd he ure red sed
t Gov nment
he er
T a intSM w h l t pa ging st nda t
o cqua E it aest cka a rds, echniques et ta progr m on pa ging for
c. r ining a cka
exporer a orga in v r pat oft countyin a t w h t India Inst ut of
t s re nized aious rs he r ssociaion it he n it e
Pa ging
cka
Undert SM M r ing Dev opmentA a (M )Scheme, a a is prov t indiv l for
he E aket el ssist nce DA ssist nce ided o iduas
pat t in ov sea fa s/
ricipaion er s ir exhibit o ov sea st t s.
ions, er s udy our
T scheme aso offera a for
he l ssist nce
Sect specific maketst bySM A t / tPromot Council Feder t ofIndia Expor
or r udy E ssociaing Expor ion s/ aion n t
Orga t
nizaion

TECHNOLOGY AND QUALITY UPGRADATION
SUPPORT TO SME’S

T obj iv oft scheme is t sensit t ma ct ing sect in Indiat upgr de t t
he ect e his o ize he nufa ur or o a heir echnol ogies,
usa ofenergyefficientt
ge echnol t reduce emissions ofGreen House Ga a ion ofot
ogies o sses, dopt her
technol ma t a pert gl lst nda improv t quait a reduce costofproduct et
ogies ndaed s he oba a rds, e heir l y nd ion ,
t a becoming gl lycompet iv T maora iv ies pl ned undert scheme incl Ca cit
ow rds obal it e. he j ct it a he ude pa y
Buil ofSM Cl erforEnergyEfficiency/ ea Dev opmentInt v ions, Impl aion ofEnergy
ding Es ust Cl n el er ent ement t
EfficientT echnol in SM sect , setingup ofCabon credita
ogies E or t r ggregaion cent s a encour ging SM
t er nd a Es
ta
o cquire productcerificaion l
t t icenses from Naiona/Int naiona bodies.
t l er t l

JOB PROSPECT
Seniora J Execut es -A
nd unior iv dministaion, Business
rt
Dev opment Promot Coordinaion a M r ing
el , ion, t nd aket
Seniora J Execut es -M na
nd unior iv a gementa coordinaion ofE ent exhibit , conferences
nd t v s, ion
Seniora J Execut es -Int naiona M r ing forEv s, conferences , exhibit
nd unior iv er t l aket ent ion
Publ R aion Officer
ic el t
Daa se M na
t ba a gement
SeniorExecut es -ProductSourcing a procurement
iv nd
R rch A l s forIndustia, Fina SM &M r
esea nayst r l nce, E aket
SeniorExecut es forprepaaion ofBusiness pl ns (Promot a Br nding)
iv rt a ion nd a
J Execut es -M r ing (T e /Fiel M r ing )
unior iv aket el d aket
St T , Execut e Secret r T ephone Oper t s
eno- ypist iv aies, el aor

SUBMITTED BY:-
VIKRAM SINGH CHAUAHN

Vikram singh

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