On the occasion of National Small Industry Day, an annual celebration dedicated to encouraging small businesses around the country on August 30, the Ministry of Micro, Small & Medium Enterprises (MSME) has introduced some key reforms. These include establishment of enterprise development centres providing professional mentoring and handholding support services to MSMEs with special focus on rural enterprises.

India is home to more than 63 million MSMEs. “In terms of exports, the sector holds high potential in various sub-sectors such as textiles, leather and leather goods, pharmaceuticals, automotive, gems & Jewellery with an overall contribution of 45 per cent,” reads the government statement dated August 30.

Some of the key reforms introduced by the ministry are:

Establishment of Enterprise Development Centers (EDCs)

With a view to provide information related to MSMEs at one place, Enterprise Development Centres (EDCs) have been conceptualised. Till date, the Ministry of MSME claims to have set up 102 EDCs across the country. The aim of these centers is to build a network of entrepreneurial leaders by providing professional mentoring and handholding support services to existing as well as aspiring MSMEs with special focus on rural enterprises on a continuous basis.

National SC-ST Hub (NSSH)

National SC-ST Hub has been launched to promote entrepreneurship culture in the scheduled caste and scheduled tribe community and fulfill the four per cent procurement target mentioned in the Public Procurement Policy order, 2018. To boost entrepreneurship among SC/ST population and for maximum on-ground penetration, interventions have been undertaken to cater to the challenge of market linkages, finance facilitations, capacity building.

Procurement Policy

For providing marketing support to MSMEs, all central ministries, government departments and Central Public Sector Enterprises (CPSEs) are required to procure 25 per cent of their annual requirements of goods and services from MSMEs including four per cent from MSMEs owned by SC/ST and three per cent from MSMEs owned by women entrepreneurs under the Public Procurement Policy.

Udyam Registration

Udyam, an online and simplified procedure of filing of registration, enables MSMEs to obtain registration without any documentation and fees. It is a globally benchmarked process and a revolutionary step towards Ease of Doing Business. The Ministry of MSME has commenced API integration of the Udyam Registration portal with GeM so that MSEs can participate in Government procurement easily.

Champions Portal

Champions is an online platform to help and handhold the MSMEs, particularly in the pandemic. It is an ICT based technology system aimed at making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding throughout the business lifecycle. The platform facilitates a single window solution for all needs of MSMEs.

Self-Reliant India (SRI) Fund

The scheme is expected to facilitate equity financing (raising money through sales of shares) of Rs 500 billion in the MSME sector. The infusion of equity will provide an opportunity to get MSMEs listed in stock exchanges. Further, it will also facilitate MSMEs to scale-up their business and growth and will help create more jobs in the MSME sector.