National Small Industry Day: Every year on August 30, India celebrates National Small Industry Day to commemorate the contribution of small-scale industry to the country’s growth.
This day is celebrated to support and promote small Industries for their overall growth potential and opportunities received for their development in the year.
The day aims to promote the value of small businesses in society and to encourage the small industries across the country.
- On this day in 2000, a comprehensive policy package for the Small Scale Industry (SSI) sector was launched, providing significant support to small firms in India.
- The erstwhile Ministry of Small Scale Industries which is now the Ministry of Micro, Small & Medium Enterprises (MSME) has decided to designate the 30th of August every year as the National Small Industry Day.
- On the other hand, the UN General Assembly has declared June 27 as the MSME Day to enhance public awareness of MSMEs’ contribution to sustainable development and the global economy.
- The day is celebrated since 2017 following a resolution passed in the Assembly during the year.
- According to a UN blog, formal and informal MSMEs make up over 90 percent of all firms and account, on average, for 70 percent of total employment and 50 percent of GDP worldwide.
What role does the MSMEs play in India?
- The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades
- The MSMEs have contributed immensely to the country’s socio-economic development.
- It not only generates employment opportunities but also works hand-in-hand towards the development of the nation’s backward and rural areas.
- It is a boon for the fresh talent in India.
- India is home to more than 6.3 crore MSMEs and contributes 45% of the total exports in sub-sectors like leather, pharmaceuticals, textiles gems & Jewelry and automotive, etc.
Some of the key reforms introduced by the Ministry of MSME are:
Revision of MSME definition:
- The government of India (GoI) approved the upward revision of the MSME definition on 1st June 2020.
- It was approved under the Aatmanirbhar Bharat Package.
- The Government revised the MSME classification by inserting composite criteria of both investment and annual turnover.
- Udyam is an online and simplified procedure for filing registration.
- It enables MSMEs to obtain registration without any documentation and fees.
- It is an ICT-based technology system.
- The platform is aimed at making the smaller units big by solving their grievances, encouraging, supporting, helping, and handholding throughout the business lifecycle.
- It facilitates a single-window solution for all needs of MSMEs.
National SC-ST Hub (NSSH):
- National SC-ST Hub has been launched to promote entrepreneurship culture in the SC-ST community and fulfill the 4% procurement target mentioned in the Public Procurement Policy order, 2018.
Self-Reliant India (SRI) Fund:
- The scheme is expected to facilitate equity financing of Rs.50,000 crore in the MSME Sector.
- The infusion of equity will provide an opportunity to get MSMEs listed in stock exchanges.
- For providing marketing support to MSEs, all Central Ministries/Government Departments and CPSEs are required to procure 25% of their annual requirements of goods and services from MSEs including 4% from MSEs owned by SC/ST and 3% from MSEs owned by women entrepreneurs under the Public Procurement Policy.
Establishment of Enterprise Development Centers (EDCs):
- To date Ministry of MSME has set up 102 EDCs across India.
- The main aim of these centers is to build a network of entrepreneurial leaders by providing professional mentoring and handholding support services to existing as well as aspiring MSMEs with a special focus on rural enterprises on a continuous basis.
About the Ministry of MSME:
- MSME is an acronym for Ministry of Micro, Small, and Medium Enterprises.
- It is a branch of the Government of India (GoI).
- It is the apex executive body for the formulation and administration of rules, regulations, and laws relating to micro, small and medium enterprises in India.
- It was founded in 2007.
- The Ministry of Agro and Rural Industries and Ministry of Small Scale Industries (SSI) were merged into a single Ministry, namely, the Ministry of Micro, Small and Medium Enterprises (MSME).
- The current Union Minister of MSME is Narayan Tatu Rane (Rajya Sabha-Maharashtra) and Minister of State is Bhanu Pratap singh Verma(Constituency-Jalaun, Uttar Pradesh)