1

Department of Industrial Policy and Ministry of Micro,

Promotion Small and Medium
Enterprises

MSME Sector
Achievements Report

February 13, 2017

MAKE IN INDIA
Table of
Contents

05
03 Skill
Policy Development
Initiatives &
Investments

05
Ease of Doing
Business
04
Promoting
MSME in
Defence

04
Support for
Startups
 Department of Industrial Policy and Promotion Ministry of Micro, Small and Medium Enterprises 3

MSME Sector
Micro, Small and Medium Enterprises (MSME) loans on relatively soft terms are being provided
sector is one of the still untapped high growth to MSMEs to meet the required debt-equity ratio
segments in India and an essential partner for for establishment of an MSME and for pursuing
achieving socio-economic growth. MSMEs, which opportunities for growth of existing MSMEs.
are spread across both urban and rural areas of
Enterprise creation under Prime Minister’s
the country, mostly form part of the unorganized
Employment Generation Programme
sector. As per present estimates, the MSME
(PMEGP)
sector including Khadi, Village and Coir
This is a credit link subsidy programme targeted
industries, consist of 51 million units and
at creating self employment opportunities for
provides employment to over 117 million
traditional artisans and unemployed youth in
persons. The sector contributes 7% to India’s
non-farm sectors. Maximum subsidy for
GDP while accounting for 45% of the total
manufacturing sector is INR 25 lakh while for
manufacturing output and 40% of the exports
service sector, it is INR 10 lakhs. From April
from India.
2014 to November 2016, a total of 1,19,369
India is the largest producer of coir in the units were setup, which provided
world with a production of 5,42,000 MT, which employment to 1,99,524 persons.
comes to around 55% of global production of coir.
Scheme of Fund for Up-gradation and
In a first, Ministry of MSME has been awarded Regeneration of Traditional Industries
the ISO 9001-2008 certification. Implementation (SFURTI)
of ISO standards has enabled the Ministry to
The revamped scheme organizes traditional
identify areas for improvement and also bring in
industries and artisans into clusters in order to
transparency and accountability in its functioning.
make them competitive for their long term
Policy Initiatives & Investments sustainability. The updated scheme also supports
the clusters to enhance marketability of products
FDI Policy
with design interventions, improved packaging
FDI in MSMEs is subject to the sectoral caps, and infrastructure.
entry routes and other relevant sectoral
During FY 2015-16, and FY 2016-17 (as on
regulations.
December 30, 2016), INR 118.63 crore has been
Make in India Soft Loan Fund approved for clusters providing employment to
Launched by SIDBI on August 18, 2015, soft 54,201 artisans.
loans, in the nature of quasi-equity, and term
 Department of Industrial Policy and Promotion Ministry of Micro, Small and Medium Enterprises 4

F
Framework for Revival and Rehabilitation of development phase not exceeding INR 3 crore are
MSMEs reserved for MSMEs.

Notified by the Ministry on May 29 , 2015, this was • MSMEs allowed to participate in conducting
introduced to help combat the financial obstacles feasibility studies for ‘Make’ projects.
that MSMEs face. Enterprises can seek revival
• MSMEs have been granted relaxation in the
and rehabilitation benefit through a committee
registration and profitability criteria for
constituted by banks with representatives from
consideration as eligible “Indian Vendor” for
State Governments, experts and others.
participation in the ‘Make’ projects.
Technology Acquisition and Development
Fund • In the discharge of offset obligations, a multiplier of
1.50 has been permitted where MSMEs are Indian
Technology Acquisition and Development Fund
Offset Partners (IOPs).
(TADF) was launched on November 18, 2015
under National Manufacturing Policy. The scheme Support for Startups
provides funding specific to technology acquisition
Scheme for Promoting Innovation and Rural
and development of clean and green technologies.
Entrepreneurship (ASPIRE) was launched on March
Global Innovation & Technology Alliance (GIAT),
18, 2015 to set up a network of technology and
appointed for implementation of the scheme has
incubation centers to accelerate entrepreneurship and
signed agreement for implementation of 16
promote innovative start-ups in the agro-industry. An
projects with MSMEs.
important component of this scheme is setting up
Fiscal incentives of Livelihood Business Incubators (LBI) under
Budget 2017-18 provides for the following: National Small Industries Corporation (NSIC), KVIC,
Coir Board or any other Institution/agency of GOI/State
• Income tax for companies with annual turnover
Govt. or under PPP mode with these institutions. The
up to INR 50 crore is reduced to 25%. About
financial support under LBI is up to INR 1 crore for
96% of companies will get this benefit of lower
NSIC & others and INR 50 Lakh for PPP incubators.
taxation.
For setting up of Technology Business Innovation
Promoting MSMEs in Defence Sector
Model (TBI), the assistance is for INR 30 Lakh for
• In the ‘Make’ category of capital acquisition, existing and INR 1 Crore for new incubators. Other
government funded projects with estimated cost financial support includes, INR 3 lakh per idea and a
of prototype development phase not seed capital of INR 1 crore for setting up of start-ups by
exceeding INR 10 crore and industry funded the incubators.
projects with estimated cost of prototype
 Department of Industrial Policy and Promotion
Presently, the total number of LBIs is 41 and TBIs
is 5 across States.
Some of the other key initiatives for promoting
startups include:
• Requirement of experience and prior turnover in
procurement from Startups by Central Public
Sector Enterprises (CPSEs) have been relaxed
w.e.f March 10, 2016.
• An Incubation Cell ‘Knowledge for Innovation
in Trade & Technology for Entrepreneurial
Start-ups’ (KITTES) was setup at IIFT Delhi
on July 18, 2016 to provide hand holding
support for MSME start-ups in international
business.
Ease of doing Business
• The ‘Udyog Aadhaar Memorandum’ (UAM)
Services was launched on September 18, 2015
to enable entrepreneurs to register
themselves by filing a simple one page form
online on Self-Certification basis. No fees
and supporting documents are required for the
online filing of UAM. Over 22
entrepreneurs have registered as on December
31, 2016.
• The documents required at application stage
and claim stage for International Cooperation
scheme have been simplified & kept to bare
minimum (10) w.e.f June 1, 2016 and
applications can be submitted online.
MSME Data Bank & Finance Facilitation Web
Portal
MSME Databank Portal and Online Finance
Ministry of Micro, Small and Medium Enterprises 5
Facilitation Web Portal was launched on August 11,
2016 and enables the Ministry to pass on the benefits
directly to MSMEs. MSME units can also update their
information on their enterprise, products and services
without visiting any government office in person. As on
December 31, 2016 more than 60,000 MSME units
have enrolled on the portal.
MyMSME
A web-based application module and Mobile App
‘MyMSME’ has been launched enabling entrepreneurs
to submit their applications for schemes online and
track it at their convenience.
Skill Development
• The Ministry has set a target of training 1.5 crore
youth by 2022. Towards this goal, the Ministry with
Samsung Electronics have set up 10 MSME
Samsung Technology Schools for skilling youth
in repair and maintenance of Samsung products.
• Training centers have been set up by NSIC in
collaboration with Escorts, Carl Zeiss, Schneider
and ABB for providing technology up-gradation
lakh training.
• During 2014-16, an amount of INR 165.42 crore was
utilized under Assistance to Training Institutions
(ATI) Scheme for organizing 6,745
Entrepreneurship Development Program. 88,540
people have been trained since April 2014 to
January 2017.
• 4,68,531 people have been trained by Tool Rooms
& Technology Centres in industry oriented skills
• An online Employment Exchange portal for
industries benefitting both employers and job
seekers was launched in June 2015.
Contact Us

Department of Industrial Policy and Promotion,

Ministry of Commerce and Industry,
Udyog Bhawan, Rafi Ahmed Kidwai Marg,
Rajpath Road Area, Central Secretariat,
New Delhi, Delhi 110011
http://www.dipp.nic.in

Ministry of Micro, Small and Medium Enterprises

Udyog Bhawan, Rafi Ahmed Kidwai Marg,
Rajpath Road Area, Central Secretariat,
New Delhi, Delhi 110011
http://www.msme.gov.in

Knowledge Partner : KPMG

Building No. 10, 8th Floor, Tower B & C,
DLF Cyber City, Phase II,
Gurgaon, Haryana 122 002
https://home.kpmg.com/in/en/home.html