Importance of MSMEs in India
Micro, small and medium enterprises, (MSMEs) enable citizens of the country to start or venture their business on their own and give back to society by creating new jobs. MSMEs contribute 30 % in India’s GDP Growth and generate employment for 110 million people every year.
MSMEs play broader roles in uplifting the talent of people hidden in smaller towns or areas of the country. To boost the growth of MSMEs, the government of India has revised the Classification of MSMEs on 01st-July-2020. Three essential aspects of Revision in MSMEs Classification:
- The investment limits of Micro, Small & Medium Enterprises MSMEs have been raised.
- Additional Criteria of turnover has been introduced.
- The distinction between the service and manufacturing sectors has been eliminated.
|Investment Criteria For MSMEs||Annual Turnover Criteria For MSMEs|
|Enterprises||In Manufacturing & Services Sectors||In Manufacturing & Services Sectors|
|Micro||Does Not Exceed 1 Crores (INR)||Does Not Exceed 5 Crores (INR)|
|Small||Does Not Exceed 10 Crores (INR)||Does Not Exceed 50 Crores (INR)|
|Medium||Does Not Exceed 50 Crores (INR)||Does Not Exceed 250 Crores (INR)|
Benefits of MSME Registration
As the part of Atma Nirbhar Bharat Scheme, the revision of the MSME definition can be further classified as providing benefits to MSMEs in terms of:
- Facilitating Technology Upgradation
- Modernization of MSMEs
- To enable MSMEs expansion on scale of operations by acquiring additional machinery and labour during this inflation time.
Free MSME Registration Through Udyam
Government has organized a full system for the purpose of the Facilitation of Registration Process known as Udyam Registration.
- Free MSME Registration.
- It is completely paperless, online & based on self declaration.
- MSMEs can apply for more than one Udyam Registration.
- Only an Aadhar number will be enough for registration else No documents or proof are required to be uploaded for registering MSME.
- PAN & GSTIN is required for Udyam Registration with effect from 01-04-2021.( Applicable as per CGST Act 2017 & notified by the ministry of MSME vide S.O. 1055(E) dated 05th March 2021.
Role of NSIC in Providing Benefits to MSMEs
Various PSUs assist Government of India in achieving the goal of growing MSME businesses. National Small Industries Corporation (NSIC), is one such Government of India Enterprise under the Ministry of Micro, Small and Medium Enterprises (MSME) that is working towards the growth of MSMEs in India.
Here we are going to explore some schemes of NSIC for MSMEs:-
Government Purchase (Single Point Registration Scheme)
NSIC assists Micro and Small Enterprises (MSEs) in enrolling them online under the Single Point Registration Scheme (SPRS) in Government Purchases Program . The Business Units Enlisted Under Single Point Registration Scheme of NSIC can avail benefits under the Public Procurement Policy for Micro & small enterprises (MSEs).
Benefits of Single Point Registration Scheme:
- Issue of tender sets free of cost
- Exemption from payment of Earnest Money Deposit (EMD).
- Benefits of the price preference with a price band of L1+15 percent.
- A mandatory overall procurement goal for the Government of India is up to 25%.
- Additionally, For exclusive purchase from SSI Sector 358 items are also reserved.
Raw Material Assistance Scheme ( Financial Support Against Bank Guarantee)
Raw material assistance scheme aims towards helping micro, small and medium enterprises by facilitating procurement of raw material with credit support. This helps MSMEs to focus better on manufacturing quality products. NSIC also avail easy finances for the purchase of raw materials under raw material scheme. Through a cash purchase units can avail discounts from their relevant suppliers.
Global B2B Portal Facilitating Business Services to MSMEs through Digital Interventions
MSME Global Mart is a global business to business portal of National Small Industries Corporation (NSIC), a Government of India Enterprise under Ministry of Micro Small and Medium Enterprises, facilitating Online Marketing Support to Micro, Small and Medium Enterprises (MSMEs) to grow their business online through digital interventions. The services can be accessed through registering for MSME Global Mart Membership Plans
Here are some membership features of MSME Global Mart:
Create Digital Presence within Minutes
Without having any technical knowledge business units can create their company web page in minutes through advance templates & become discoverable to millions of buyers globally.
Showcase Products & Services 24/7
Showcase unlimited products & services virtually 24×7 and get access to global markets.
Keyword based Unlimited Tender alerts in Inbox
Get Keyword based Domestic Tenders alerts in their inbox based on their business profiles.
Award of Contract Information
Get detailed information on Tenders Awarded in the past including information on L1.
Country Specific Global Tender Notices from World Bank, United Nations, ILO etc
Latest International Procurement Notices from United Nations Development Programme (UNDP), World Bank, International Labour Organization (ILO) etc.
Business Trade Leads
Get connected to prospective buyers & find relevant business trade leads.
Franchise & Distributorship Opportunities
Business Units can Offer or Avail Franchise & Distributorship Opportunities for growing their business globally.
Attractive Discounts For MSME Global Mart Gold Members
Attractive Discounts for MSME Global mart Gold Members on various services from the Major healthcare groups like Apollo, Fortis, Max, and Metro on various services.
Digital Services Facilitation for MSMEs
NSIC is now offering ICT Enabled Digital Services to MSMEs like Accounting & GST compliance software, Sales & Marketing Tools for domestic & export markets, ICT services including data, cloud, security &
video conferencing and cloud-based business software suite from Empanelled Service Providers like Airtel, Zoho, D&B, and many more to facilitate MSMEs in terms of Technology adoption by increasing their efficiencies through automating the processes for cost reduction, capacity enhancements & compliances, etc.
Request For Quotation Tool
Request for quotation tool for MSMEs help them to send invites to bid for specific requirements from multiple suppliers, and get a quick response from them.
Along with providing Visibility on Global Platform, MSME Global Mart provides many other additional benefits to members like Provision to Post discounts & Bulk Offers on the portal, Business Enquiry Management, Price Alert Watch, Information of Events & Exhibitions and much more.