The Government Schemes Launched for MSME’s in India - Corpbiz Advisors

Corpbiz

1 Oct 202104:40

Summary

TLDRThe Indian government has initiated various schemes to bolster the MSME sector, which significantly contributes to the nation's social and economic growth. Key initiatives include the Prime Minister's Employment Generation Program for self-employment, Pradhan Mantri MUDRA Yojana for low-interest loans to MSMEs and startups, and the ZED Certification Scheme for quality enhancement. Additional schemes focus on market promotion, traditional industry regeneration, and credit facilities. The government also encourages women entrepreneurs and provides a range of benefits through the MSME registration, aiming to elevate the national economy.

Takeaways

📈 The Indian government has launched various schemes to support the MSME sector, which significantly contributes to the country's social and economic growth.
💼 The Prime Minister's Employment Generation Program is designed to create employment opportunities for MSMEs in both rural and urban areas.
🏦 The Pradhan Mantri MUDRA Yojana provides low-interest loans to MSMEs and startups through refinancing by banks and microfinance institutions.
🔍 The MSME ZED Certification Scheme financially encourages existing and new manufacturing units to produce high-quality, zero-defect products.
🌐 The Development of Khadi, Village, and Koirala Industries scheme includes market promotion and development initiatives for MSMEs.
🔄 The Scheme for Regeneration of Traditional Industries aims to organize traditional industries, provide employment, and enhance marketability.
💡 ASPIRE is a scheme that promotes innovation, entrepreneurship, and employment opportunities among youths through incubation by technical and research institutes.
💻 The Credit Link Capital Subsidy Scheme is designed to upgrade technology and enhance plant and machinery in small-scale industries.
🏢 The Credit Guarantee Scheme facilitates collateral-free credit for MSMEs, supported by the Small Industries Development Bank of India and the MSME Ministry.
🚀 Udyogadhar Memoranda is a mandatory requirement for MSMEs to avail credit loans and government subsidies, with both online and offline registration options.
👩‍💼 The Entrepreneurship Promotion for Women scheme supports women entrepreneurs with credit, counseling, training, and business expansion techniques.

Q & A

What is the primary purpose of the schemes launched by the Indian government for MSMEs?
-The primary purpose of the schemes launched by the Indian government for MSMEs is to help the sector grow and work efficiently, as it significantly contributes to the social and economic growth of the country.
Which government body manages the Prime Minister's Employment Generation Program for MSMEs?
-The Prime Minister's Employment Generation Program for MSMEs is managed by the Khadi and Village Industries Commission (KVIC) at the national level.
What is the Pradhan Mantri MUDRA Yojana and how does it benefit MSMEs?
-The Pradhan Mantri MUDRA Yojana is a scheme launched by Prime Minister Modi where refinance agencies, banks, and micro-units development and MUDRA banks provide loans to non-banking financial institutions and microfinance institutions at low rates. These institutions, in turn, offer low-interest loans to MSMEs and startups.
What are the three categories of loans under the Pradhan Mantri MUDRA Yojana?
-The three categories of loans under the Pradhan Mantri MUDRA Yojana are Shishu, Kishor, and Tarun.
What is the focus of the Financial Support to MSME in ZED Certification Scheme?
-The focus of the Financial Support to MSME in ZED Certification Scheme is to financially encourage existing and new manufacturing units to create better products with zero defects and high quality, aligning with the 'Zero Defect, Zero Effect' mission for manufacturing.
What are the schemes launched by PM Modi for the development of Khadi, Village, and Coir industries?
-The schemes launched by PM Modi for the development of Khadi, Village, and Coir industries include Market Promotion and Development Scheme, Domestic Market Promotion, Export Market Promotion, and Koirikshajana.
What is the main objective of the Scheme for Regeneration of Traditional Industries?
-The main objective of the Scheme for Regeneration of Traditional Industries is to organize traditional industries, provide sustained employment, enhance marketability, equip traditional artisans, and boost governance cluster systems.
What does ASPIRE aim to achieve in the MSME sector?
-ASPIRE aims to generate employment opportunities and encourage entrepreneurship culture among youths by implementing incubation through technical and research institutes.
What is the Credit Link Capital Subsidy Scheme and its purpose?
-The Credit Link Capital Subsidy Scheme is launched for upgrading the technology of small-scale industries, including Khadi, Village, and Coir industrial units, and to enhance the plant and machinery with state-of-the-art technology.
How does the Credit Guarantee Scheme for Micro and Small Enterprises facilitate MSMEs?
-The Credit Guarantee Scheme for Micro and Small Enterprises facilitates credit facilities to MSME units through a collateral-free credit facility, established by the Small Industries Development Bank of India and the MSME Ministry.
What are the benefits of Udyogadhar Memoranda for MSMEs?
-Udyogadhar Memoranda is a mandatory requirement that provides benefits of availing credit loans and subsidies from the government, and it can be registered both online and offline.
What support does the government provide to women entrepreneurs under the MSME sector?
-The government has launched a scheme for women entrepreneurs who want to start their businesses, providing credit, counseling, training, and delivery techniques to help them operate, manage, and expand their businesses efficiently.

Outlines

00:00

🏭 Government Schemes for MSMEs in India

Kandar introduces various government schemes aimed at supporting the MSME sector in India, which significantly contributes to the country's social and economic growth. The Prime Minister's Employment Generation Program targets employment opportunities for MSMEs in both rural and urban areas, managed by the Khadi Village Industries Commission. The Pradhan Mantri MUDRA Yojana provides low-interest loans to MSMEs and startups through refinancing by banks and microfinance institutions. The ZED Certification Scheme financially supports MSMEs to produce high-quality, zero-defect products. Other schemes include market promotion for Khadi and Village Industries, regeneration of traditional industries, ASPIRE for promoting entrepreneurship and innovation, Credit Link Capital Subsidy for technology upgrades, Credit Guarantee Scheme for collateral-free credit, Udyogadhar for government benefits, and Entrepreneurship for Women to support female entrepreneurs with credit, counseling, training, and business expansion techniques.

Mindmap

Keywords

💡MSME

MSME stands for Micro, Small, and Medium Enterprises. These are business entities that fall under specific size and investment criteria set by the government. In the context of the video, MSMEs are highlighted as a significant contributor to India's social and economic growth. The government has launched various schemes to support and encourage the growth of MSMEs, emphasizing their importance in the country's economy.

💡Government Schemes

Government schemes refer to the initiatives and programs introduced by the government to support specific sectors or groups within the economy. In the video, the schemes are designed to aid MSMEs in India, helping them to grow and operate more efficiently. These schemes are crucial for the MSME sector as they provide financial assistance, credit facilities, and other forms of support.

💡Prime Minister's Employment Generation Program

This is a specific government scheme mentioned in the video, aimed at generating employment opportunities for MSMEs in both rural and urban areas. It encourages self-employment projects and is managed by the Khadi and Village Industries Commission (KVIC) at the national level, with implementation by state and district-level bodies. The program exemplifies the government's commitment to job creation and economic stimulation through MSME support.

💡Pradhan Mantri MUDRA Yojana

Pradhan Mantri MUDRA Yojana is a financial scheme launched by Prime Minister Modi, which provides loans to non-banking financial institutions and microfinance institutions at low rates. These institutions then offer low-interest loans to MSMEs and startups. The scheme is divided into three categories: Shishu, Kishor, and Tarun, catering to different stages of business growth. It is a key initiative to improve access to credit for MSMEs.

💡ZED Certification Scheme

The ZED Certification Scheme is focused on encouraging MSMEs to produce high-quality, zero-defect products. It provides financial support to existing and new manufacturing units to enhance their product quality and adhere to the 'Zero Defect, Zero Effect' mission. This scheme is significant as it aims to improve the competitiveness of Indian products in the global market by emphasizing quality and sustainability.

💡Khadi Village and Coir Industries

Khadi Village and Coir Industries refer to traditional industries that are part of India's cultural and economic heritage. The video mentions schemes launched by PM Modi for the development of MSMEs operating in these sectors. These initiatives aim to promote market access, enhance production capabilities, and preserve traditional crafts, thereby supporting the livelihoods of artisans and contributing to rural development.

💡ASPIRE

ASPIRE stands for 'A Scheme for Promotion of Innovation, Rural Industry, and Entrepreneurship.' It is designed to generate employment opportunities and foster an entrepreneurial culture among the youth. The scheme supports incubation through technical and research institutes, aiming to stimulate innovation and business development in rural areas, thereby promoting economic growth and social inclusion.

💡Credit Guarantee Scheme

The Credit Guarantee Scheme is a financial support mechanism that facilitates credit access for MSMEs by providing collateral-free loans. It is a joint initiative by the Small Industries Development Bank of India (SIDBI) and the MSME Ministry. This scheme is crucial for MSMEs that may not have sufficient collateral to secure traditional bank loans, thus enabling them to expand and modernize their operations.

💡Udyogadhar Memoranda

Udyogadhar Memoranda is a mandatory registration requirement for MSMEs that provides benefits such as access to credit, loans, and government subsidies. It is a step towards formalizing the MSME sector and ensuring that businesses can avail of various government support mechanisms. The video script mentions that registration can be done both online and offline, indicating the government's efforts to make the process accessible.

💡Entrepreneurship Development for Women

This scheme is targeted at women who wish to start their own businesses within the MSME sector. The government not only provides financial support but also offers credit counseling, training, and technical assistance to help women entrepreneurs operate, manage, and expand their businesses effectively. This initiative is significant as it aims to empower women and promote gender equality in the economic sphere.

Highlights

Government schemes launched for MSMEs in India to support social and economic growth.

Prime Minister's Employment Generation Program targets employment opportunities for MSMEs.

Khadian Village Industries Commission manages the MSME scheme at the national level.

State KVIC directorates and banks implement MSME schemes at state and district levels.

Pradhan Mantri MUDRA Yojana provides low-interest loans to MSMEs and startups.

MUDRA Yojana is divided into three categories: Shishu, Kishor, and Tarun.

Financial Support to MSME in ZED Certification Scheme encourages zero-defect manufacturing.

Development of Khadi, Village, and Koi Industries with various market promotion schemes.

Scheme for regeneration of traditional industries to provide sustained employment.

ASPIRE scheme promotes innovation, entrepreneurship among youths through incubation.

Credit Link Capital Subsidy Scheme for upgrading technology in small scale industries.

Credit Guarantee Scheme for Micro and Small Enterprise facilitates collateral-free credit.

Udyogadhar Memoranda is a mandatory requirement for availing credit and government subsidies.

Entrepreneurship promotion for women with credit, counseling, training, and delivery techniques.

MSME schemes offer numerous benefits, encouraging entrepreneurs to register for economic growth.

Registration for MSME can be done both online and offline.

Contact information provided for MSME registration assistance.