Recent schemes and their performance
The Ministry has made several decisions in the recent years to boost the functioning of MSMES and thereby enhance export, a few of which include the following:
• Simplifying the registration process through Udyog Adhaar Memorandum (UAM), this is a simple one-page form. Nearly 39 lakh UAM were signed between 2015 and 2017. The process upgraded the information available with the ministry regarding the trends in the sector, such as employment trends, investment details, manufacturing details etc, besides facilitating monitoring of those trends. • Performance and credit rating scheme – being implemented by National Small Industries Corp (NSIC), the scheme aims to provide a third party opinion on the capacities and credit worthiness of MSMES. According to the Ministry of MSME, 12,842 units were rated under the scheme during 2015-16.
• Framework for Revival and Rehabilitation of MSMES: Working under the guidelines issued by the Reserve Bank of India, a corrective action plan was created at the banks for the revival and rehabilitation of MSMES.
• The government has set up an online MSME data bank, on which enterprises can update information about their products and services, which can be accessed by government departments for procurement. More than 1.22 lakh units registered under the scheme until December 2017.
• The ministry facilitates buyer-seller meets, conferences and seminars within India and internationally as well.
• The government has provisions of skill training and then hold employment fairs for the induction of trainees.
• There are funding schemes, such as Prime Minister’s Employment Generation Programme, Scheme of fund for Regeneration of Traditional Industries (SFURTI), which are financial assistance schemes for uplift of rural economy and traditional industries.
• There are a number of schemes for coir promotion.
• The government has also launched Micro Units Development and Refinance Agency (MUDRA) – which is a loan scheme for small enterprises.
A few more schemes are launched recently by the government for the promotion of MSMES. Majority of schemes focus on lifting the rural economy through rural entrepreneurship by having incubation centres and technology centres for start-ups, such as aspire: A Scheme for Promoting Innovation and Rural Entrepreneurship.