The value of Micro Small and Medium Enterprises (MSME) related products exported during 2017-18 reached US$ 124.4 bn as per data received from the Directorate General of Commercial Intelligence and Statistics (DGCIS).¹

Total Number of MSMEs registered on Udyog Aadhar Memorandum (UAM) – 6.8 mn² 

• Micro – 60,32,100
• Small – 7,28,516
• Medium – 28,611

States with the highest number of MSMEs:³

• Maharashtra – 11,04,189
• Bihar – 8,29,694
• Tamil Nadu – 7,91,288
• Uttar Pradesh – 7,06,342
• Madhya Pradesh – 6,45,077

Sources: 1, 2, 3 

The government has taken several measures to strengthen the Medium, Small and Micro Enterprises (MSMEs). The highlights of the budget 2019-20 for the Ministry of MSME are as follows:

1. An allocation of US$ 1 bn.¹
2. US$ 50.1 mn has been allocated under the ‘Interest Subvention Scheme for Incremental Credit to MSMEs’. This will provide funding for the 2% rebate on incremental loans up to INR 1 crore for GST-registered MSME units.²
3. US$ 85.4 mn is being provided under the Credit Support Programme, which will ensure seamless credit guarantee to small and medium enterprises.³
4. 20 large and 100 small Technology Centres are being set up with a support of US$ 858.12 mn.⁴ These technology centres are being set up in the continuation of the 12 initiatives announced in November 2018.⁵ These initiatives are expected to help grow, expand and facilitate MSMEs across the country.

Sources: 1, 2, 3, 4, 5

The Solar Charkha Mission of the Ministry of Micro, Small and Medium Enterprises (MSMEs) was launched on 27 June 2018.¹ The Solar Charkha Mission is a programme that aims to contribute towards India’s rural unemployment issue. The mission provides training in producing cloth to rural people. This, in turn, allows them to earn a better livelihood by producing cloth. Another appealing factor of this programme is that the looms and spindles used during the training will be completely powered by solar energy.² The Solar Charkha mission will be spread over 50 clusters and every cluster will employ 400 to 2,000 artisans. On 2 November 2018, the government announced 100 technology centres are to be established at a cost of US$ 858.12 mn.³

Sources: 1, 2, 3

The purpose of the Udyam Sangam is to encourage dialogue and partnership among various stakeholders of the MSME ecosystem for promoting innovation and knowledge sharing on MSME related issues. It also aims to create awareness about the MSME sector at the national level.¹ The Udyam Sangam 2018 was inaugurated to mark the 2nd United Nations Small and Medium-sized Enterprises day.²

Sources: 1, 2

MSME Sampark is a digital platform that connects MSME Technology Centre trainees/students and recruiters.¹

Source: 1

MSME Sambandh is a portal to help monitor the implementation of the public procurement policy for micro and small enterprises.¹ The annual procurement of goods and services from Micro, Small and Medium Enterprises by the Central Public Sector Enterprise (CPSE) during 2017-18 stood at US$ 3.5 bn.²

Sources: 1, 2

The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 was amended in 2018, to change the basis of classification of Micro, Small and Medium enterprises from ‘investment in plant & machinery/equipment’ to ‘annual turnover’.¹

As per the amendment, MSMEs are categorised as follows:²

1. Micro enterprise: turnover does not exceed US$ 0.72 mn
2. Small enterprise: turnover is more than US$ 0.72 mn but less than US$ 10.75 mn
3. Medium enterprise: turnover exceeds US$ 10.75 mn but does not exceed US$ 39.4 mn.

Changing the basis of classification helps to put in place a non-discretionary, transparent and objective criterion, and eliminates the need for verifications or inspections required to ascertain the cost of investment.³ 

Source: 1, 2, 3