MSME

May 2024
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

MSME Overview 6

Recent policies and Major Schemes 11

Recent Developments 22

Key Industry Contacts 26

Appendix 28

2
Executive summary
No. of Registered
MSME No. of MSMEs
MSMEs on
Contribution to under Udyog
No. of MSMEs Udyam
India’s Export Aadhaar
Registration
Output Memorandum
Portal

6.3 crore ~43.59 1.02 crore 4,00,42,875*

Registered
Registered micro- Registered small
midsized
enterprises enterprises
enterprises

3,93,18,355* ~ 6,08,935* 55,488*

▪ MSMEs are being encouraged to market their products on the e-commerce site, especially
Registered MSMEs in India in FY22 (lakh units)
through Government e-Marketplace (GeM), owned and run by the government, wherefrom
Ministries and PSUs (public sector undertakings) source their procurement.
▪ Government e-Market (GeM) portal procurement surpasses Rs. 4 lakh crore (US$ 47.96
billion) in FY24, with significant purchases across various sectors and interest from
Rural international markets, encompassing a substantial number of orders.
MSMEs,
Urban 324.88, ▪ As per data from the Ministry of Micro, Small & Medium Enterprises, as of March 2024, the
MSMEs, 51%
number of MSMEs registered on the Udyam portal, including the Udyam Assist Platform
309, 49%
(UAP), has reached 4,00,42,875, with continual growth observed. Among these,
3,93,18,355 are classified as micro-enterprises, accounting for approximately 97.7% of the
total. Small enterprises constitute 6,08,935, representing about 1.5%, while medium-sized
enterprises total 55,488, comprising roughly 0.8% of the total registered entities.
Notes: *As of March 2024
Source: FICCI-EY Re-imagining India's M&E sector , Ministry of Micro Small and Medium Enterprises, GeM Portal

3
Advantage India

4
Advantage India

2. STATUTORY 4. GOVERNMENT SCHEMES

3. POLICY SUPPORT
BODIES ▪ Under Pradhan Mantri Mudra Yojana
▪ In the interim budget 2024-2025, it was announced
the establishment of a corpus totaling Rs. 1 lakh (PMMY), In FY24, Rs. 5.41 lakh crore
▪ The MSME Ministry heads five statutory (US$ 64.87 billion) was sanctioned
bodies—KVIC, Coir Board, NSIC, NI- crore (US$ 12.1 billion), offering 50-year interest-free
loans. This initiative aims to incentivize the private under 6.6 crore Mudra loans to non-
MSME, and the MGIRI. corporate and non-farm MSEs.
▪ These bodies are responsible for aiding sector, particularly MSMEs, to enhance research and
innovation in emerging sunrise domains. ▪ Under Pradhan Mantri Mudra Yojana
MSMEs with respect to government (PMMY), in FY23, Rs. 4.56 lakh crore
schemes and policies. ▪ In Budget 2023-24, government revamped credit
guarantee scheme for MSMEs to take effect from (US$ 55.58 billion) was sanctioned
April 1, 2023, through the infusion of Rs. 9,000 crore under 6.2 crore Mudra loans to non-
(US$ 1.09 billion) in the corpus. This scheme would corporate and non-farm MSEs, against
1. SECTOR OVERVIEW enable additional collateral-free guaranteed credit of a target of Rs. 4 lakh crore (US$ 48.75
billion).
• The number of MSMEs in the country Rs. 2 lakh crore (US$ 24.4 billion) and reduce the
cost of the credit by about 1%. ▪ The "Vivad se Vishwas I-Relief to
is expected to grow from 6.3 crore, of
▪ Interim Budget 2024 allocates Rs. 22,137.95 crores MSMEs" scheme was launched in May
which only 2.5 crore have ever
(US$ 2.65 billion) for MSMEs, emphasizing new 2023 by the Department of
availed credit from formal sources to
clusters and technology centers for global Expenditure, Ministry of Finance, to
approximately 7.5 crore in the
competitiveness, with positive feedback from industry provide relief to MSMEs during the
coming times, growing at a projected
stakeholders. COVID-19 period.
CAGR of 2.5%.
▪ On June 30, 2022, the Raising and
• The Ministry of MSME spent Rs.
Accelerating MSME Performance
23,583.90 crore (US$ 2.84 billion) in
(RAMP) Programme, as introduced in
FY23, over 260% increase from Rs.
the recent Union Budget, was
6,513.13 crore (US$ 786.75 million)
launched. This INR 6,000 crore
spent in FY19.
• The gross bank credit deployed to
MSMEs under priority sector lending
2 3 initiative is geared towards bolstering
the competitiveness of MSMEs within
the manufacturing sector by offering
in October 2023 amounted to US$
assistance for productivity
279.18 billion, marking a 22.8%
enhancement, quality improvement,
increase from the previous year and
and branding & marketing efforts.
an 11.8% rise from September 2023,
according to the latest RBI data on 1 4
sectoral deployment.
ADVANTAGE INDIA
Source: MSME Annual Report (2018-2019), News Sources

5
 MSME overview

MARKET OVERVIEW

6
Number of MSMES expected to grow; micro enterprise
dominates the sector

Registered MSMEs in India in FY24 (As of March 21, 2024)

Small enterprise, Medium

1.5% enterprise, 0.8%
Micro-enterprise
Small enterprise
Medium enterprise
Micro-enterprise,
97.7%

▪ India has approximately 6.3 crore MSMEs. The number of registered MSMEs stood at 4 crore units as of March 2024.
▪ As of December 2023, Maharashtra, Tamil Nadu, and Uttar Pradesh collectively account for nearly 40% of all registered micro, small, and medium
enterprises (MSMEs) in India, according to findings from a CBRE-CREDAI report. These states, in particular, have emerged as the top three
contributors to MSME registrations, with Maharashtra representing 17%, Tamil Nadu 10%, and Uttar Pradesh 9% respectively.
▪ Majority (72%) of the registered MSMEs, as of December 31, 2022, were service enterprises while manufacturing covered 28%.
▪ The BSE SME (small and medium enterprises) platform is expected to witness >60 SMEs to enter the market in one year (2021-22) to bring up equity
funds for meeting their business requirements. The initial public offering (IPO) route witnessed 16 SMEs enter the market; they raised Rs. 100 crore (US$
13.74 million) in 2020.
▪ According to a survey (published in June 2021) conducted by Bluehost, a web hosting solutions provider, Indian Micro, Small and Medium Enterprises
(MSMEs) are rapidly adopting digital payments over cash, with 72% of payments done through digital mode compared with 28% cash transactions. The
rise in digital adoption presents prospects for further growth in the sector.
▪ MSMEs are projected to benefit from the 7% growth forecast for FY24, expecting increased capital expenditure and hiring, as indicated by a joint report
by U GRO Capital and Dun & Bradstreet.

Source: News Sources

7
Criteria for MSME (micro small medium enterprise)

Micro Enterprise
• Enterprises with turnover of Rs. 5 crore
(US$ 610,000) or less are categorised as
micro enterprises.
Medium Enterprise • A manufacturing enterprise is categorised
as a micro enterprise when the investment
• Enterprises with less than Rs. 250 in plant and machinery does not exceed
crore (US$ 30.4 million) turnover Rs. 1 crore (US$ 120,000).
are categorised as medium
enterprises.
• A manufacturing enterprise is
categorised as a medium enterprise
when the investment in plant and
machinery does not exceed Rs. 50
crore (US$ 6.1 million).

Small Enterprise
• Enterprises with turnover of Rs. 50
crore (US$ 6.1 million) or less are
categorised as small enterprises.
• A manufacturing enterprise is
categorised as a small enterprise when
the investment in plant and machinery
does not exceed Rs. 10 crore (US$ 1.2
million).

Source: Development Commissioner Ministry of Micro Small and Medium Enterprises (DCMSME) Website, News sources

8
Statutory bodies under MSME ministry

Khadi and Village Industries Commission (KVIC)

1 Khadi and Village Industries Commission (KVIC) is a statutory organisation engaged in promoting
and developing khadi and village industries for providing employment opportunities in rural areas,
thereby strengthening the rural economy.

Coir Board
2 The Coir Board is a statutory body established for promoting overall development of the coir
industry and improving living conditions of workers in this industry.

National Small Industries Corporation Limited (NSIC)

3 Established in 1955, the National Small Industries Corporation Limited (NSIC) is responsible for
promoting, aiding and fostering growth of micro and small enterprises in the country, generally
on commercial basis.

National Institute for Micro, Small and Medium Enterprises, (NI-MSME)

4 Established in 1960, the National Institute for Micro, Small and Medium Enterprises (NI-MSME) is
responsible for enterprise promotion and entrepreneurship development, enabling enterprise
creation, performing diagnostic development studies for policy formulation, etc.

Mahatma Gandhi Institute for Rural Industrialisation (MGIRI)

The objectives of the Mahatma Gandhi Institute for Rural Industrialisation (MGIRI) are to accelerate
5 rural industrialisation for sustainable village economy, empower traditional artisans, encourage
innovation through pilot study and R&D for alternative technology using local resources.

Source: MSME website

9
Organisation setup of MSME ministry

Minister of MSME

Minister of State (MSME)

Secretary (MSME)

AS&FA AS&DC (MSME) JS (ARI) JS (SME)

ARI Division SME Division

EA (IFW) (KVIC, Coir (NSIC, NIMSME)
O/o DC (MSME) Board, MGIRI)
JS (TC)
& MSME-DIs

Integrated DDG (DATC)

Finance Wing
Tool Room
Division
DATC Wing
(DBT, Digital
Payment, IT
Cell)

Source: Development Commissioner Ministry of Micro Small and Medium Enterprises (DCMSME) Website

10
 Recent policies and major schemes

RECENT TRENDS AND STRATEGIES

11
Recent policy initiatives for MSME… (1/3)
1
UDYOG AADHAAR MEMORANDUM
▪ Udyog Aadhaar Memorandum (UAM) is a one-page online registration system for MSMEs based on self-certification.
▪ The information sought is on a self-certification basis and no supporting documents are required at the time of online filing of UAM.
▪ As per the Union Budget 2021-22, India has ~6.8 million Udyog Aadhar registered MSMEs.
▪ The Ministry of Micro, Small and Medium Enterprises extended the validity of Udyog Aadhaar Memorandum from December 31, 2021, to
June 30, 2022.

2
MSME DATABANK
▪ MSME DataBank enables the Ministry of MSME to streamline and monitor the schemes and pass on the benefits directly to
MSMEs.
▪ It is helpful for MSME units that can update their enterprise information as and when required without visiting any government office
and updating information about their products/services.
▪ Until May 2019, more than 6.1 lakh MSMEs were registered in the databank.

3
MY MSME
▪ In order to facilitate the enterprises to enjoy benefits of various schemes, the MSME office launched a web-based application
module in the form of a mobile app called My MSME.
▪ This allows enterprises to make their applications and check for schemes on their mobile phone using the app.

4
TECHNOLOGY CENTRE SYSTEMS PROGRAMME (TCSP)
▪ In March 2021, the Ministry of MSME, through the Development Commissioner (DC-MSME), implemented the Technology Centre
Systems Programme (TCSP) to establish 15 new technology centres (TC).
▪ The centres provide assistance to the industry, predominantly MSMEs in the General Engineering, Automotive, Fragrance & Flavour
and ESDM sectors
Source: MSME Annual Report (2018-2019), News Articles

12
Recent policy initiatives for MSME… (2/3)

5
MSME SAMPARK
▪ Launched in 2018, the MSMR Sampark portal is a digital platform wherein jobseekers (students or trainees of MSME Technology
Centres) and recruiters can register themselves for mutually beneficial interactions.

6
DIRECT BENEFIT TRANSFER IN THE M/O MSME
▪ The welfare and subsidy schemes of the Government of India (GOI) have been brought under a single platform, i.e., the Direct
Benefit Transfer (DBT), to reform the delivery system, ensure faster flow of funds, target beneficiaries, avoid duplication and reduce
frauds.
▪ In 2019, 20 MSME schemes have been listed on the DBT Bharat Portal.
▪ Under DBT , the schemes have been categorised on the basis of benefit type to the beneficiary, i.e., Cash or Composite (cash and
kind).

7
DIGITAL PAYMENTS
▪ As part of the Digital India initiative, the Ministry of MSME has taken numerous initiatives to digitally enable the entire MSME
ecosystem—all MSME offices have been digitally empowered, and efforts have been taken to spread awareness on the benefits of
digital mode of payments such as BHIM, UPI and Bharat QR code.
▪ In FY24, the number of digital transactions stood at 14,726 crore.

8
MSME-SAMBANDH
▪ For effective implementation of the Public Procurement Policy, Central Ministries/Departments/Public Sector Enterprises
(CPSEs) must procure 25% annual procurement from MSEs—including 4% from MSEs owned by schedule cast/schedule tribes
and 3% from MSEs owned by Women entrepreneurs. The Ministry of MSME launched MSME Sambandh.
▪ The portal helps monitor procurement by CPSEs and enables them to share the list of required products or services from MSEs.
Source: MSME Annual Report (2018-2019), RBI, News Articles

13
Recent policy initiatives for MSME… (3/3)

9
GRIEVANCE MONITORING
▪ The Ministry of MSME has started an MSME internet grievance monitoring system (e-Samadhan) to help track and monitor the
grievances and suggestions received.
▪ The Ministry also attends to all the grievances on Centralised Public Grievance Redress and Monitoring System (CPGRAMS).

10
MSME SAMADHAAN
▪ MSME Samadhaan is a portal that gives information about pending payments with the Central Ministries, State Governments, etc.,
with respect to micro and small enterprises (MSEs). The government bodies are provided with a username and password to login
and check the delayed payment with respect to MSEs.
▪ The portal also allows the MSEs to track their delayed payments related complaint online. After 15 days of online filing, the case
automatically gets registered with the MFEFC.

11
NATIONAL SCHEDULED CASTE AND SCHEDULED TRIBE HUB
▪ The National Scheduled Caste and Scheduled Tribe Hub has been set up to provide professional support to SC/ST entrepreneur to
fulfill the obligations of the Government Public Procurement Policy.
▪ The Hub is also in-charge of collection, collation and dissemination of information regarding SC/ST enterprises and entrepreneur,
capacity building among existing and prospective SC/ST entrepreneur through skill training and EDPs, promoting participation of
SC/ST entrepreneur in exhibitions and organising special exhibitions for this purpose, etc.

12
MSME-SAMBHAV
▪ In November 2021, the Ministry of Micro, Small and Medium Enterprises launched SAMBHAV, a national-level awareness
programme to push economic growth by promoting entrepreneurship and domestic manufacturing.
▪ Through this programme, 130 field offices of the ministry will promote entrepreneurship to students from different colleges/ITIs in a
month-long initiative under the ministry.

Source: MSME Annual Report (2018-2019), News Article

14
Major schemes…(1/7)
The Ministry of MSME runs numerous schemes targeted at providing credit and financial assistances, skill development training, infrastructure
development, technological and quality upgradation and other services for MSMEs across the country.

Credit and Financial (1/3)

1Credit Guarantee Trust
Prime
Fund For Minister’s
MSEs Employment Generation Programme
(CGTMSE)
▪
Prime
The - Provision
Minister’s
scheme, of
implemented by the KVIC, aims to generate employment opportunities in rural and urban areas by setting up new self-
collateral free credit
employment
Employment ventures/projects/micro
Generation enterprises. The programme also aims to provide continuous sustainable employment to prospective
artisans
forProgramme
MSMEs and unemployed youth and increase the wage-earning capacity of artisans and contribute to the growth of rural and urban
employment
▪ The eligibility criteria to avail this scheme are the individual should be 18 years and above and if a project size is above Rs. 10 lakh (~US$
12,000) for manufacturing and Rs. 5 lakh (~US$ 6,000) for service, the applicant must have completed education up to 8th standard
▪ Since its inception in 2008-09, as of November 30, 2023, about 9.29 lakh micro enterprises have been assisted with a subsidy of Rs.
34,517 crore (US$ 2.51 billion) generating estimated sustainable employment for 78.36 lakh persons.
▪ Jammu
Credit and Kashmir
Linked Capitalleads in employment generation under the Prime Minister’s Employment Generation Programme (PMEGP), with
44,542 projects assisted between 2021-22 and 2023-24, receiving a margin money subsidy of Rs.921.38 crore (US$ 110 million) and
Subsidy Scheme
creating an estimated 3,56,336 jobs, accounting for 18% of nationwide employment generated under the scheme during this period.

2
Credit Linked Capital Subsidy Scheme
▪ As large number of MSEs in India are running their business with outdated technology and machinery, the objective of the Credit Linked
Credit Linked Capital
Capital Subsidy Scheme (CLCSS) is to facilitate technology upgrade among MSEs by providing capital subsidy of 15% (limited to a
Subsidy Scheme
maximum Rs. 15 lakh (~US$ 18,000)).
▪ The guarantees under this fund is provided to extend collateral free lending to MSEs through banks and other institutions.
▪ The scheme covers collateral free credit facility up to Rs. 2 crore (~US$ 240,000) per borrowing unit. The guaranteed cover is up to 75% of
the credit facility—Rs. 50 lakh (~US$ 60,000) (85% for loans up to Rs. 5 lakh (~US$ 6,000) provided to micro enterprises, 80% for MSEs
owned with a uniform guarantee at 75% of the credit exposure above Rs. 50 lakh (~US$ 60,000) and up to Rs. 2 crore (~US$ 240,000)). A
composite all in Annual Guarantee Fee up to 1.80% p.a. of the credit facility sanctioned is charged, with the minimum Guarantee Fee being
1% p.a.

Source: MSME Annual Report (2019-2020)

15
Major schemes…(2/7)
Credit and Financial (2/3)

3
Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE)
▪ The scheme was launched by the Government of India (GoI) to provide collateral-free credit to the micro and small enterprise sector.
▪ Since the launch of the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE), till November 30, 2023, guarantees
amounting to Rs. 5,33,587 crore (US$ 64.35 billion) have been issued under the Credit Guarantee Scheme for Micro and Small
Enterprises (CGMSE).
▪ Union Minister for MSME Mr. Narayan Rane launched the revamped CGTMSE Scheme in Mumbai on April 27, 2023. CGTMSE has
been provided with an additional corpus support of Rs. 9,000 crore (US$ 1.09 billion) in the Union Budget for FY24 to revamp its Scheme
to provide a guarantee for an additional Rs. 2 lakh crore (US$ 24 billion) to Micro and Small Enterprises. The modifications included a
reduction in the guarantee fees for loans up to Rs. 1 crore (US$ 120,000) by 50% bringing the minimum guarantee fee to the level of
0.37% per annum only. Another major change announced was raising of ceiling for guarantee from Rs. 2 crore (US$ 240,000) to Rs. 5
crore (US$ 610,000) and enhancing the threshold limit for claim settlement without initiation of legal action to Rs. 10 lakh (US$ 12,000).
▪ Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE) approves Rs. 2 lakh crore (US$ 23.98 billion) guarantees in FY24,
marking the highest ever in a single fiscal year, doubling from the previous year's figure, aimed at facilitating collateral-free loans to
eligible MSMEs.
▪ As of February 04, 2024, during the current Financial Year 2023-24, the Credit Guarantee Fund Trust for Micro & Small Enterprises
(CGTMSE) has achieved a noteworthy milestone by surpassing a guaranteed amount of Rs. 1.50 lakh crore (US$ 18.09 billion). This
marks a substantial increase of 50% from the previous fiscal year's figure of Rs. 1.04 lakh crore (US$ 12.54 billion).
▪ The guarantee cover available under the scheme is to the extent of 50%, 75%, 80% & 85% of the sanctioned amount of the credit facility.
The extent of guarantee cover is 85% for micro-enterprises for credit up to Rs. 5 lakh (US$ 6,000). The extent of guarantee cover is 50%
of the sanctioned amount of the credit facility for credit from Rs. 10-100 lakh (US$ 12,000-120,000) per MSE borrower for retail trade
activity.
▪ The extent of guarantee cover is 80% for (i) Micro and Small Enterprises operated and/or owned by women; and (ii) all credits/loans in
the North East Region (NER) for credit facilities up to Rs. 50 lakh (US$ 60,000). In case of default, trust settles the claim up to 75% of the
amount in default of the credit facility extended by the lending institution for credit facilities up to Rs. 200 lakh (US$ 240,000).

Source: MSME Annual Report (2019-2020), Start-up India

16
Major schemes…(3/7)
Credit and Financial (3/3)
4
Non-government provident funds (PFs) investing in alternative investment funds
(AIFs) will add to MSME fundraising options
▪ In March 2021, the Finance Ministry allowed private retirement funds to invest up to 5% in Category I & II AIFs regulated by SEBI; this will
help widen the fundraising options for MSMEs and expand the domestic pool of capital
▪ Category 1 AIFs consists of infrastructure, venture capital, angel and social venture funds. Category II AIFs covers funds where at least
51% of the size can be invested in either infrastructure, SMEs, venture capital or social welfare entities

5
Special Credit Linked Capital Subsidy Scheme (SCLCSS) for the services sector
▪ In November 2021, the Indian government launched the Special Credit Linked Capital Subsidy Scheme (SCLCSS) for the services sector.
▪ This scheme will help enterprises in the services sector meet various technology requirements. It also has a provision to grant 25% capital
subsidy for procurement of plant & machinery and service equipments through institutional credit to MSMEs owned by SC-ST
entrepreneurs without any sector specific restrictions on technology upgradation.

6
Raising and Accelerating MSME Performance (RAMP)
• The total project cost of RAMP, for the five years FY 2022-23 to 2026-27 is Rs. 6,062.45 crore (US$ 731 million), of which, World Bank
support is Rs. 3,750 crore (US$ 452 million).
• The central government approves Rs. 114.80 crore (US$ 13.67 million) for Rajasthan under the Raising and Accelerating MSME
Performance (RAMP) programme, aimed at boosting MSME enterprises in the state and enhancing their capacity to contribute to the goals of
Developed India-Developed Rajasthan.

Source: Press Information Bureau

17
Major schemes…(4/7)

7
Credit Guarantee Scheme for the livestock sector
• The Department of Animal Husbandry & Dairying (DAHD) under the Ministry of Fisheries, Animal Husbandry and Dairying announced the
launch of a new credit guarantee scheme. The scheme under the Animal Husbandry Infrastructure Development Fund (AHIDF) aims to
Creditfacilitate
Guarantee Trust
collateral-free credit for MSMEs in the livestock sector.
Fund For MSEs
• To operationalize the scheme, DAHD said it has set up a credit guarantee fund trust of Rs. 750 crore (US$ 90.2 million) for credit
(CGTMSE)
guarantee
Prime - Provision
coverage of
Minister’s of up to 25 % of loans disbursed to MSMEs by eligible banks and other lending institutions.
collateral free credit
Employment Generation
Skill Development and Training
forProgramme
MSMEs

1
A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship
(ASPIRE)
▪ The objectives of this scheme are to create new jobs, promote entrepreneurship culture in the country, promote innovation in the
MSME sector, etc.
▪ The scheme activities include livelihood business incubators and technology business incubators.

2
Entrepreneurship
Credit Linked Capital and Skill Development Programmes (ESDP)
▪
Subsidy Scheme
Under the Entrepreneurship and Skill Development Programmes (ESDP), the Ministry of MSME has been organising several
programmes focussing on the process of improving skills and knowledge of entrepreneur, and enhancing the capacity to develop,
manage and organise a business venture.
▪ The objective of the program is to motivate young individuals to consider self-employment or entrepreneurship as one of the career
options.
▪ The programme is carried out by the MSME-Development Institutes, Technology Centres and Enterprise Development Centres (EDCs).

Source: MSME Annual Report (2019-2020)

18
Major schemes…(5/7)

Infrastructure
1
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
▪ The objectives of this scheme are to organise traditional industries and artisans into clusters to make them competitive and provide
support for their long-term sustainability, enhance marketability of products of such clusters, build innovative products, improve
technologies, etc.
▪ Chief Secretary Dr. K. S. Jawahar Reddy oversees the establishment of a banana processing cluster in Pulivendula, Kadapa district,
under the SFURTI scheme, with an estimated cost of Rs 121 crore (US$ 14.51 million), capable of processing 1.08 lakh metric tonnes of
bananas annually.
▪ A total of 513 clusters have received approval, with 389 of them operational. Within January 2023 to December 2023, 89 clusters became
functional, benefiting 50,166 artisans across 25 States. Additionally, 15 clusters were approved, with the Government of India providing
Rs. 40.01 crore (US$ 4.83 million) in assistance, directly benefiting 8,875 artisans.

2
Scheme for Micro & Small Enterprises Cluster Development Programme (MSE-
CDP)
Credit Linked Capital
▪ The MSME Ministry has adopted the cluster development approach as a key strategy for enhancing productivity and competitiveness as
Subsidy
well Scheme
as capacity building of Micro and Small Enterprises (MSEs) in the country.
▪ The programme includes activities such as support funding for setting up ‘Common Facility Centres (CFC) and Infrastructure
Development Projects (IDP)’. 30 projects for setting up of Common Facility Centre (CFC) under MSE-CDP have been approved in
Maharashtra, out of which, 14 projects are completed.
▪ Since the scheme's inception, a total of 580 projects have received approval, with 308 projects completed. Among these approved
projects, 40 were sanctioned from January 2023 to December 2023, with a total project cost of nearly Rs. 560 crore (US$ 67.53 million),
aided by the Government of India with Rs. 386 crore (US$ 46.55 million).

Source: MSME Annual Report (2019-2020)

19
Major schemes…(6/7)

Technology Upgrade and Competitiveness

1
Financial Support to MSMEs in ZED Certification
▪ The scheme promotes Zero Defect and Zero Effect (ZED) manufacturing among MSMEs and ZED Assessment for their certification
to encourage MSMEs to constantly upgrade their quality standards in products and processes, promote adaptation of quality
tools/systems and energy-efficient manufacturing, and drive manufacturing by adopting the Zero Defect production processes and
without impacting the environment.

▪ The scheme is targeted towards MSMEs involved in manufacturing.

▪ The Quality Council of India is responsible for implementing the scheme.

2
Support for Entrepreneurial and Managerial Development of SMEs through
Incubators
Credit Linked Capital
Subsidy
▪ Scheme
The objective of the scheme is to promote and support the creativity of MSME enterprises and encourage adoption of the latest
technologies in manufacturing as well as knowledge-based innovative MSMEs.
▪ The scheme includes financial assistance of up to Rs. 15 lakh (US$ 18,000) for developing and nurturing the idea; up to Rs. 1 crore
(US$ 120,000) for procurement and installation of plant and machines to strengthen technology-related R&D activities; or up to Rs. 1
crore (US$ 120,000) as a grant-in-aid for seed capital support to Host Institute (HIs)/Business Incubator (BIs) for converting deserving
ideas into start-ups.

Source: MSME Annual Report (2019-2020)

20
Major schemes…(7/7)

Other Services

1
Building Awareness on Intellectual Property Rights (IPR) for MSMEs
▪ The Building Awareness on Intellectual Property Rights (IPR) has been launched to promote awareness of Intellectual Property
Rights (IPINR) among MSMEs by assisting them in technology upgrade and enhancing competitiveness and effective utilisation of
IPR tools.

▪ The scheme is executed through various activities such as awareness programmes, seminar workshops, reimbursement for
registration of IP, international co-operation & setting up IP facilitation centre across the country.

2
Trade, import and export for MSMEs
▪ MSME support and development organisation, National Small Industries Corporation (NSIC), will assist MSMEs working with the
Credit Linked Capital
Agricultural and Processed Food Products Export Development Authority (APEDA) across multiple areas
Subsidy Scheme
▪ The NSIC, through an MoU with APEDA, will help its MSME members in exploring the export potential of their agricultural and
processed foods products. Additionally, APEDA members will get access to NSIC schemes, which would help them address issues
pertaining to technology adoption, skills, product quality and market access

▪ The relationship will also support promotion of green & sustainable manufacturing technology for MSME clusters, enabling units to
switch to sustainable and green production processes and products

Source: MSME Annual Report (2019-2020)

21
Recent Developments

22
New developments (1/3)
1
Institutional Support
▪ PayU, the payments and fintech business of Prosus, has made a strategic investment of US$ 5 million in a seed round in BRISKPE, a Mumbai-based
cross-border payments platform focused on simplifying global payments for MSMEs.
▪ Google plans to make a calculated investment in digital payments with the aim to strengthen the dynamic Indian Micro, Small and Medium Enterprise
(MSME) market, said Mr. Sanjay Gupta, Country Head and Vice President of Google India. Google plans to expand its impact beyond payments,
aiming to unlock India's MSME potential through financial inclusion and digital empowerment.
▪ In a significant move to bolster the MSME sector in India, the Technology Development Board (TDB) and the Small Industries Development Bank of
India (SIDBI) formalized a Memorandum of Understanding (MoU) to facilitate easier access to credit for enterprises engaged in the development and
commercial application of indigenous or imported technology.
▪ As of February 05, 2024, women-owned MSMEs constitute 20.5% of Udyam Portal registrations, contributing 18.73% to employment and 10.22% to
turnover. Various initiatives support their growth and empowerment in the sector.
▪ On January 18, 2024, FinAGG Technologies, specializing in MSME financing, secured US$ 11 million funding co-led by BlueOrchard and Tata
Capital Ltd. The Series A round also involved SIDBI and Prime Venture Partners, aiming to expand presence, drive innovation, and empower women
entrepreneurs.
▪ On February 27, 2023, in New Delhi, a Memorandum of Understanding (MoU) was signed to renew cooperation in the MSME sector between the
National Small Industries Corporation Ltd. (NSIC), a CPSE under the Ministry of MSME, and the Korea SMEs and Startups Agency (KOSME) of the
Republic of Korea.
▪ On December 15, 2023, DCM Shriram Ltd approved its Chemicals business entry into "Advanced Materials". The Self-Reliant India (SRI) Fund,
initiated by the government in May 2020, managed by SBICAP Ventures, has invested Rs. 6,448 crore (US$ 777.62 million) in MSMEs as of
November 30, 2023, with a 15-year tenure for equity infusion.
▪ On June 27, 2023, DealShare announces a Rs. 1,000 crore (US$ 120 million) investment over five years in MSME partners across six states. This
initiative aims to enhance partner capacity, foster research and development, and increase affordability through indigenous brands and private labels.
▪ As announced in December 2023, the share of MSME-related products in all India exports stood at 45.56% as of September 2023 (FY24), informed
the Minister of State in the MSME Ministry Mr. Bhanu Pratap Singh Verma.
▪ The Reserve Bank of India on August 17, 2023, announced the launch of the Public Tech Platform for Frictionless Credit (PTPFC) pilot project. The
PTPFC has been created by the Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the central bank. The aim of the pilot project is
to connect borrowers and lenders, which will make credit more accessible to millions of individuals looking for small loans. The PTPFC will be
enabling the disbursal of non-collateral based loans for Micro, Small and Medium Enterprises (MSMEs), Kisan Credit Card loans up to Rs. 1.6 lakh
(US$ 1,924.07), dairy loans, personal loans, and home loans.
Source: News Aricles

23
New developments (2/3)

2
Government Push
▪ The central government approves Rs. 114.80 crore (US$ 13.67 million) for Rajasthan under the Raising and Accelerating MSME
Performance (RAMP) programme, aimed at boosting MSME enterprises in the state and enhancing their capacity to contribute to the goals
of Developed India-Developed Rajasthan.
▪ The Centre approves Strategic Investment Plans (SIPs) for nine states, including Rajasthan, West Bengal, and Gujarat, under the Raising
and Accelerating MSME Performance (RAMP) scheme, with a total funding of Rs. 713 crore (US$ 85.49 million), aiming to reduce
compliance costs and improve credit access for micro, small, and medium enterprises.
▪ The Self-Reliant India (SRI) fund, with a corpus of Rs. 50,000 crore (US$ 6 billion), has invested Rs. 7,593 crore (US$ 910 million) in 425
MSMEs, supporting sectors such as agriculture, pharma, auto, and chemicals, under the Aatmanirbhar Bharat package.
▪ The Defense Ministry will procure 928 strategically important Line replacement units, subsystems, spares, and components from Indian
MSMEs, as informed in May 2023.
▪ Through the Public Procurement Policy, the Central Government is promoting small-scale enterprises by purchasing the products of MSEs.
In the financial year 2022-23, the government spent Rs. 60,432 crore (US$ 7.3 billion), which is 42% more than the target.
▪ On March 15, 2024, the total number of registered enterprises on Udyam and UAP surpassed 4 crore, marking a significant achievement for
the formalization initiative led by the Ministry of MSME.
▪ Launched on 17th November 2023, the PM Vishwakarma Scheme provides holistic support to artisans and craftspeople, offering recognition,
skill enhancement, tool incentives, credit aid, digital transaction bonuses, and marketing assistance, with a total financial outlay of Rs. 13,000
crore (US$ 1.57 billion) and a target of 30,00,000 beneficiaries by 2027-28.
▪ As of February 04, 2024, during the current Financial Year 2023-24, the Credit Guarantee Fund Trust for Micro & Small Enterprises
(CGTMSE) has achieved a noteworthy milestone by surpassing a guaranteed amount of Rs. 1.50 lakh crore (US$ 18.09 billion). This marks
a substantial increase of 50% from the previous fiscal year's figure of Rs. 1.04 lakh crore (US$ 12.54 billion).
▪ The Ministry, in collaboration with the Small Industries Development Bank of India (SIDBI), introduced the Udyam Assist Platform (UAP) on
January 11, 2023, to integrate Informal Micro Enterprises (IMEs) into the formal sector. By December 31, 2023, approximately 1.11 crore
IMEs have been registered on UAP.
▪ The SRI Fund aims to offer growth capital to deserving and eligible MSME units. Between January 1, 2023, and November 30, 2023, NSIC
Venture Capital Fund Limited (NVCFL), acting as a Mother Fund, has enlisted 14 daughter funds by investing over Rs. 3,658 crore (~US$
266 million), thereby supporting 242 prospective MSEs.
▪ Since its inception in 2008-09, as of November 30, 2023, about 9.29 lakh micro enterprises have been assisted with a subsidy of Rs. 34,517
crore (US$ 2.51 billion) generating estimated sustainable employment for 78.36 lakh persons.

Source: News Aricles

24
New developments (3/3)

3
Industrial Demand
▪ In September 2021, Union Minister for MSMEs, Mr. Narayan Rane called for building the coir industry in Konkan, North and
Northeastern regions of the country and growing the market network.
▪ In FY22, exports of coir and coir products stood at US$ 528.13 million
▪ In FY22, the US was the largest importer of coir and coir products from India (30% in value), followed by China (20% in value), the
Netherlands, South Korea, the UK and others.
▪ Domestic production of coir fibre in FY21 (until December 2020) stood at 519,000 metric tonnes and was estimated at 710,000
metric tonnes until March 2021.

Source: News Aricles

25
Key Industry Contacts

26
Key Industry Contacts

Agency Contact Information

B - 4 / 161, Safdarjung Enclave,

Ministry of Micro, Small and Medium New Delhi-110029,
Enterprises Telephone: +91-11-23063288/23063643
Website: https://msme.gov.in

Room No 356 A, Udyog Bhawan, Rafi Marg, New Delhi –

110011
Federation of Indian Micro and Small & Telephone: 91-11- 26187948,26712064,46023157,46018592
Medium Enterprises (FISME) Fax: +91-11- 26109470
Email: [email protected]
Website: http://www.fisme.org.in

27
Appendix

28
Glossary
▪ CFC: Common Facility Centres

▪ CPGRAMS: Centralised Public Grievance Redress and Monitoring System

▪ CPSEs: Central Ministries/Departments/Public Sector Enterprises

▪ DBT: Direct Benefit Transfer

▪ GOI: Government of India

▪ KVIC: Khadi and Village Industries Commission

▪ MGIRI: Mahatma Gandhi Institute for Rural Industrialisation

▪ MSEs: Micro and Small Enterprises

▪ MSE-CDP: Micro & Small Enterprises Cluster Development Programme

▪ MSME: Micro Small and Medium Enterprise

▪ NSIC: National Small Industries Corporation Limited

▪ NI-MSME: National Institute for Micro, Small and Medium Enterprises

▪ SC/ST: Schedule Caste/ Schedule Tribe

▪ TCSP: Technology Centre Systems Programme

▪ UAM: Udyog Aadhaar Memorandum

▪ Y-o-Y: Year on Year

▪ Wherever applicable, numbers have been rounded off to the nearest whole number

29
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$

2004-05 44.95 2005 44.11

2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95
2012 53.49
2012-13 54.45
2013 58.63
2013-14 60.50
2014 61.03
2014-15 61.15
2015 64.15
2015-16 65.46
2016 67.21
2016-17 67.09
2017 65.12
2017-18 64.45
2018 68.36
2018-19 69.89
2019 69.89
2019-20 70.49
2020 74.18
2020-21 73.20
2021 73.93
2021-22 74.42 2022 79.82
2022-23 78.60 2023 82.61
2023-24 82.80 2024* 83.21

Note: *- Until April 2024

Source: Foreign Exchange Dealers’ Association of India

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