Micro And Small Scale Enterprises In India
The small sector covers a wide spectrum of industries and small-scale services and business enterprises and thus is referred to as micro and small scale Enterprises (MSEs). The MSEs include modern small-scale Industries (SSIs), tiny or micro-enterprises, small-scale service enterprises, and village and cottage industries. The Government‟s industrial policy has given a special role to the small-scale sector.
The small-scale sector plays a pivotal role in the Indian economy in terms of employment, output, and exports. The growth in this sector has resulted in a wider dispersal of industrial and economic activities and ensures better use of local resources. The present chapter provides a discussion on the role and contribution of MSEs in India, problems facing MSEs in India, and measures taken by the government to improve its performance.
Role And Performance Of Micro And Small Scale
The definition of MSE is provided under the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. As per MSMED Act, 2006 MSEs are defined on the basis of their investment in plant and machinery (for manufacturing enterprises) and in equipment for enterprises providing or rendering services.
MSMED Act, 2006 introduces the concept of „enterprise‟ as opposed to the earlier concept of industry. According to the provision of (the MSMED) Act, 2006 Micro, Small, and Medium Enterprises (MSME) are classified into two Classes:
(a) Manufacturing Enterprises- These enterprises are engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and Regulation) Act, 1951). Manufacturing Enterprises are defined in terms of investment in Plants & Machinery.
(b) Service Enterprises: These enterprises are engaged in providing or rendering of services and are defined in terms of investment in equipment.
Title – A Project Report On Micro And Small Enterprises In India
Author – Dr. Poonam Bewta
College – JDM College, University of Delhi
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