The Government of India has been a consistent support system to strengthen the Small and Micro level business, which has helped to encourage more MSMEs to register. Under the Micro, Small, and Medium Enterprises Development Act of 2006, the government has given MSMEs numerous additional resolutions and initiatives. By assisting in areas like financing, investments, and boosting their competitiveness by cultivating a reputable reputation in the community, they aim to enhance and promote the growth of MSMEs.
We will discuss all the great initiatives, undertaken by the Government to ensure a smooth and hassle-free process for the MSMEs effectively with cost-effective benefits and growth-oriented steps:
Creating a brand name and ren cognition.
From the beginning, the government has made a strong commitment to helping domestic and small-scale business owners achieve sustainable growth and gain recognition on a global scale. The government wants to give MSMEs the option to acquire and benefit from simple and hassle-free credit funding in order to establish their reputation and foster a positive image in society. A strong brand name enables MSMEs to stand out from competing, similarly branded new products on the market. By doing this, the government guarantees to foster an environment of healthy competition for MSMEs and improves their chances of long-term survival in the market.
Creating Demand and Easy access to the Markets
The “Aatmanirbhar Bharath Abhiyan” vision of the Indian government aims to build an independent country on the basis of five guiding principles. Infrastructure, the economy, demographics, tech-driven systems, and demand are some of them. The government is adamant that MSMEs have the potential to make India independent if given the proper direction and support from the five foundations. The emphasis is mostly on generating demand for MSMEs through public procurement by making it possible for the government and PSUs to purchase the goods and services. The government e-Marketplace was developed to provide a unified procurement system that offers a single platform for procurement of goods, services, and works in order to ensure smooth procurement by MSMEs.
Schemes Launched by the Government
The government has undertaken numerous steps to introduce programmes that help MSMEs become economically stable and offer access to resources and technology. Ministry of Skill Development and Entrepreneurship, Ministry of Labour and Employment, Ministry of Heavy Industries and Public Enterprises, Ministry of Youth Affairs and Sports, Ministry of New and Renewable Energy Schemes, Ministry of Women and Child Schemes, Credit Linked Capital Subsidy Scheme, SME Division Schemes, Development Commissioner Schemes, NSIC Schemes, ARI Division Schemes The Indian government has made great progress toward making the country self-sufficient.
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Credit Availability
Although MSMEs have a slim possibility of collecting funding right away, the government is crucial in providing them with short-, medium-, and long-term financial support. For MSMEs to grow adequately, timely finance and credit funding at a fair price are important. SIDBI, the supreme authority in charge of MSME development and growth in India, is frequently involved in refinancing for the expansion of commercial sectors. Additionally, commercial banks and non-banking financial institutions lend to MSMEs in order to help them acquire cash that assist their capital investments. Additionally, small and medium-sized accounting firms play a critical role in assisting microbusinesses in selecting the appropriate amount of financing for their needs.
Infrastructure and Technology
The Government of India has taken an initiative that will facilitate the MSMEs with all the necessary infrastructure and technologies and boost the growth of their products and services as they lack enough access to infrastructure and technology compared to big MNC companies. The government has adopted the cluster development approach for increased competitiveness and enhancing its technological capabilities. The program also focuses on implementing new and alternative strategies to upgrade their skills and develop their existing technology by providing them with knowledge and guiding them throughout the completion of the process. The Ministry of Micro, Small, and Medium, Enterprises has provided the MSMEs with 15% capital subsidies with a maximum limit of 1 crore, for technological upgradation. In addition to adopting new technology, MSMEs will also need to adjust to digitalization in order to improve customer service, boost business process efficiency, and create a resilient economy.
Skills and Women Entrepreneurship
The MSMEs consistently have a labour shortage that restrains their ability to expand. The Government of India conducts skill development training that enables participants to pinpoint the skills they lack, allowing them to concentrate on upskilling and acquiring the knowledge necessary to explore new market opportunities and trends by anticipating future uncertainties and preparing for better handling of such unpredictable circumstances and market volatility.
The government also supports and fosters female entrepreneurs by giving them training and counselling on how to identify the distinctive qualities of their products and potential areas for innovation. In order to increase the flow of credit, the Indian government has also given banks and lending organisations up to 30% of the loans to support women business owners.