Understanding MSME

In this first of a series of article on MSME, Kamal Chopra, chairman, international co-operation at All India Federation of Master Printers, brings this government body in the spotlight and reasons why it was set up

06 May 2015 | By Kamal Chopra

The Small and Medium Enterprise in India (and thereby print) has emerged as highly vibrant and dynamic sector in contributing to the growing economy by employing around 40% of India’s workforce.
Hence, the SME’s print sector is considered to be a driving force in innovation and building competition in the economic sector. There are many schemes and facilities available for the growth and benefit of the MSE sector in India. 
Here we will talk about the schemes available with the Ministry of Micro, Small & Medium Enterprises (MSME) under the Government of India. First of all it is necessary to know the definition of MSME and some broader outlines of the MSMED Act 2006. 
In a significant policy initiative, the Government has enacted ‘Micro, Small and Medium Enterprises Development Act, 2006‘, which aims to facilitate the promotion and development, and enhance the competitiveness of MSMEs. The Act, which came into force from 2 October 2006, fulfilled a long-cherished demand of this sector. Apart from giving legal strength to the definitions of micro, small and medium enterprises, this Act contains penal provisions relating to the delayed payment to these enterprises.
The SME’s sector is considered to be a driving force in the country and for this highly vibrant and dynamic sector, a Task Force under the chairmanship of the principal secretary to prime minister of India was constituted to address the issues of MSME sector. The Task Force has, in its report, made recommendations in the areas of credit, marketing, labour, rehabilitation and exit policy, infrastructure, technology, skill development, taxation and development of MSMEs in the North-East and Jammu & Kashmir. A large number of recommendations have been implemented. A council on MSMEs under the chairmanship of the prime minister has been constituted to lay down the broad policy guidelines and review the development of the MSME sector. For ensuring timely/speedy implementation of the recommendations of the Task Force and follow-up on the decisions of the prime minister‘s council on MSMEs, a Steering Group under the chairmanship of principal secretary to the prime minister has also been constituted.
The fourth All India Census of MSMEs (2006-07), was released during 2011-12. The results reveal that there are 36.2-crore MSMEs in 2006-07, providing employment to over 80-crore persons. This is the first census after the enactment of the MSMED Act, 2006. Government is taking keen interest in the development of this key sector of India, when it is found that this sector is highly employment generating.
To talk about the facilities, schemes or benefits available, I would like to mention the classification and definition of micro, small and medium industry as follows:
The benefits
The benefits, in general, are available only to the units registered under MSMED Act, 2006 with valid EM Part-II. As per MSMED Act, 2006, a person intends to set up micro, small enterprise, shall file memorandum of micro, small enterprise, as the case may be, with District Industries Centre/Sub-DIC of the concerned district where enterprise will be set up. The District Industries Centre/Sub-DIC of the respective district where the enterprise is situated has been declared as specified authority for micro and small enterprise for acknowledgement, of memorandum. The DIC shall issue acknowledgement in the form of Entrepreneurship Memorandum getting it duly filled in, in all respects with necessary signature and undertaking. Filing of the EM has been categorised in two parts – Part-l, applicable for setting up of (proposed) micro and small enterprises, and Part-ll (after commencement of production/services to be rendered of those enterprises). 
Some benefits are available for individualbut some are available only to the group of entrepreneurs/associations registered under documented bodies. 
In the next article, we will discuss the schemes and benefits under the ministry of MSME especially beneficial for the printing and packaging sector.
MSME grant to delegates
The All India Federation of Master Printers (AIFMP) disbursed an amount of Rs 9,00,397 to the delegates who visited the Print Technology Exhibition at Kuala Lumpur in 2014. 
This grant was distributed to the delegates under the Government of India, Ministry of MSME under the international cooperation scheme.