National Small Industry Day(NSID) is annually observed across India on 30 August to celebrate and recognise the contributions of Small Scale Industries (SSIs) to India’s economic growth and development.
Significance:
i.The Day also highlights various government programs and policies aimed at supporting and promoting small industries.
ii.The Day celebrates the pivotal role of small-scale businesses, known as MSMEs in generating employment, fostering innovation, and helping India’s GDP.
Background:
i.On 30 August 2000, the then Prime Minister (PM) Atal Bihari Vajpayee, introduced a new comprehensive policy package for the SSI sector at the first-ever National Conference on SSI organised by the Ministry of SSI and the Ministry of Agro and Rural Industries (ARI).
- Since then, the Government of India (GoI) has been celebrating 30 August as NSID.
ii.NSID wasfirst observed on August 30, 2001.
MSMEs in India:
i.Under the Micro, Small, and Medium Enterprises Development Act of 2006, the MSMEs are classified based on investment in plant, machinery, or equipment, and turnover:
- Micro-enterprise: Investment ≤ Rs 1 crore; Turnover ≤ Rs 5 crore.
- Small-enterprise: Investment ≤ Rs 10 crore; Turnover ≤ Rs 50 crore.
- Medium-enterprise: Investment ≤ Rs 50 crore; Turnover ≤ Rs 250 crore.
ii.Over 5 decades, MSMEs have emerged as a dynamic force in India’s economic and social development.
- They are 2nd only to agriculture in job creation, offering diverse products and services for both domestic and global markets.
iii.MSMEs have contributed 30.1% to India’s GDP in 2022-23, and export contributions showed resilience, recovering to 45.73% in 2023-24, with 45.79% recorded up to May 2024.
iv.In the 2024-25 Budget, the Ministry of MSME received a budget allocation of Rs 22,137.95 crore (Budget Estimate (BE)).
v.As of March 2024, Maharashtra had the highest share of medium, small, and micro enterprises (MSMEs) in India, with over 17%. Tamil Nadu was the second highest, with more than 10%.
Note: According to the United Nations (UN), Micro, Small, and Medium Enterprises (MSMEs) represent 90% of businesses, generate 60 to 70% of employment, and contribute 50% of the global Gross Domestic Product (GDP).
Government Initiatives for MSMEs
The GoI has introduced a comprehensive set of initiatives to strengthen the MSME sector, recognizing its critical economic role. Some key programs include:
1.Udyam Registration Portal (URP):
i.Launched in 2020, the URP facilitates easy, paperless, self-declaration-based registration for MSMEs.
ii.As of now, over 4.91 crore MSMEs are registered, creating jobs for over 21.17 crore individuals.
2.Pradhan Mantri Vishwakarma Scheme (PMVS):
i.Launched in 2023, with a budget of Rs. 13,000 crores (2023-28), PMVS supports artisans and craftspeople who work with their hands and tools.
ii.It is fully funded by the GoI with an initial outlay of Rs. 13,000 crores for 2023-24 to 2027-28.
- Over 2.34 crore applications submitted; 16.19 lakh successfully registered as of August 23, 2024.
Other Notable Initiatives:
i.From April 1, 2023, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) under the Credit Guarantee Scheme (CGS) Offers:
- Collateral-free loans of up to Rs. 500 lakh for Micro and Small Enterprises (MSEs), with guarantee coverage of up to 85%.
ii.Under the current guidelines of the PM’s Employment Generation Program (PMEGP), the admissible project/unit cost for Margin Money (subsidy) has been increased:
- Manufacturing Sector: Maximum cost enhanced to Rs 50.00 lakh.
- Service Sector: Maximum cost enhanced to Rs 20.00 lakh.
Related Observance:
The UN’s MSMEs Day is annually observed across the globe on 27 June to raise public awareness of the contributions of MSMEs to sustainable development.
About the Ministry of Micro, Small and Medium Enterprises (M/o MSME):
Union Minister– Jitan Ram Manjhi (Constituency: Gaya, Bihar)
Minister of State (MoS)- Sushri Shobha Karandlaje (Constituency: Bangalore North, Karnataka)
