Government Boosts MSME Sector with Key Initiatives, Women-Led MSMEs

Importance of MSME Sector: The MSME sector has continued to play a pivotal role in driving economic growth, employment, and entrepreneurship across the nation. During his address to the nation on the occasion of the 78th Independence Day on 15.08.2024, the Hon’ble Prime Minister emphasized the Government’s focus on and commitment towards promoting sustainability, innovation, and ease of doing business for MSME, aligning with the larger national vision of making India a global leader and highlighted the importance of MSME.

Over the last 100 days, the Government of India has accelerated implementation of development programmes and rolled out numerous initiatives to empower MSME and ensure their sustainable development in line with the nation's broader objectives. The various initiatives launched over the past 100 days are aimed at promoting growth, boosting entrepreneurship, creating employment opportunities, and ensuring that our MSME are better equipped to face the challenges of a dynamic global economy. 

Some of the key achievements over the last 100 days, covering various schemes and  initiatives of the Ministry of MSME,  aimed at bolstering the MSME sector, are as follows:

1. Formalization Drive of MSME

• Date of signing of MOU with State Governments : 27th June 2024, New Delhi

• Details: Formalization drives, including mass awareness camps were conducted across the country in collaboration with State Governments and MSME associations to onboard MSME onto the Udyam Registration Platform and the Udyam Assist Platform (UAP). This initiative aims to integrate informal MSME into the formal economy. In this accelerated drive, the total number of MSME registered on Udyam/UAP has crossed 5 crore.

• Outcome:  In comparison to a total of 1.06 crore MSME registrations in 2023, the number has now increased to 5.07 crore in 2024. With the increase in MSME registrations, this is expected to benefit approximate 21 crore persons in terms of generation of employment opportunities.

• Under Prime Minister's Employment Generation Programme (PMEGP), employment has been provided to more than 55 lakh people in the last 10 years. Under this scheme, many new micro enterprises have been established, and it aims to increase employment opportunities in rural and urban areas.

MoUs signed with States of Maharashtra and Andhra Pradesh on 27th June 2024

2. Setting Up Micro Enterprises Through PMEGP

• Approval Date: 9th June 2024 onwards

• Details: Under PMEGP (Prime Minister’s Employment Generation Programme), approvals have been accorded during the past 100 days, whereby 26,426 new micro enterprises have been established with loan disbursements of ₹3,148 crore.

• Outcome: This initiative is expected to benefit approximate 2.11 lakh people in terms of generation of employment opportunities. 

 Textile unit assisted under PMEGP

Food Processing unit assisted under PMEGP

3. Promotion and Development of MSME in the North-Eastern Region 

• Approval Date: 26th June 2024

• Details: Ministry of MSME has accorded approval to 12 projects for infrastructure development, including establishment of new Technology Centres and                                re-development of industrial estates in the North-Eastern region, including Sikkim. The projects aim to generate employment and boost economic growth by providing technology support and business services.

• Outcome: 2,290 unemployed youth will benefit, with employment opportunities generated for the local economy in the North-Eastern region, including Sikkim.

4. Yashasvini Campaign for Women Entrepreneurs

• Launch Date: 27th June 2024, Delhi

• Details: 

• The Ministry of MSME, launched the Yashasvini Campaign on 27th June 2024, on the Udyami Bharat Day, coinciding with International MSME Day, aimed at promoting women-led development through entrepreneurship. The initiative adopts a whole-of-government approach, with support from various Ministries, such as, Rural Development, Tribal Affairs, Women and Child Development, and Skill Development, as well as State Governments in collaboration with the Women Entrepreneurship Platform (WEP) of NITI Aayog.

• A notable aspect of Yashasvini is the public-private partnership fostered through Women Entrepreneurship Platform (WEP), which ensures                           industry-level competence and focus. A series of events will be conducted in campaign mode to raise awareness of government schemes and promote    formalization, registration, and capacity-building for women entrepreneurs. The initiative provides support in six key areas: access to finance, training, market linkages, mentorship, compliance, and legal/business support              services. 

• The first campaign, held in Jaipur on 19th July 2024, saw the participation of around 650 women entrepreneurs, leading to over 4,000 Udyam and UAP registrations. A second campaign, held as part of the PM Vishwakarma    Conclave in Ranchi on 11th September 2024, witnessed participation from 200 women entrepreneurs and SHGs.

• Outcome: To hold 17 more such campaigns this year. To impact one lakh women. This campaign will further be scaled up in future, so that more women can get benefitted from it. 

Yashasvini campaign for Women Entrepreneurs 

5. Special Provision for Women under CGTMSE to Enhance Access to Collateral-free Credit 

• Approval Date: 9th September 2024 (Approved by CGTMSE Board).

• Details: The CGTMSE Scheme will now include enhanced credit guarantees for women-owned MSME, with a guarantee coverage of 90%. The scheme also includes the provision for reducing the annual guarantee fee, making credit more accessible for women entrepreneurs. This is a significant step towards improving access of women entrepreneurs to collateral-free credit from banks.

• Outcome: 27 lakh women-led MSME are expected to benefit from this initiative.

6. Launch of TEAM (Trade Enablement and Marketing) Scheme for Marketing Support

• Launch Date: 27th June 2024, New Delhi

• Details: TEAM is a new scheme launched by Ministry of MSME under the RAMP Programme to facilitate e-commerce engagement for MSME. The initiative supports MSME in entering digital platforms through knowledge sharing and capacity building, with 150 workshops planned to promote digital marketing. So far, two such workshops have already been conducted at Pune and Ranchi with around 150 participants in each workshop. 

• Outcome: Digital enablement for MSME, benefiting 5 lakh MSME of which 50% will be women-owned enterprises.

Inauguration of MSME TEAM Initiative on 27th June 2024

7. Establishment of 14 New State-of-the-Art Technology Centres

• Approval Date: 12th August 2024

• Details: Ministry of MSME is in process of establishment of 14 new Technology Centres (TCs) at Sindhudurg (Maharashtra), Nagpur (Maharashtra), Pune (Maharashtra), Jhansi (Uttar Pradesh), Ambala (Haryana), Samba (Jammu & Kashmir), Bokaro     (Jharkhand), Coimbatore (Tamil Nadu), Jabalpur (Madhya Pradesh), Bilaspur (Chhattisgarh), Rourkela (Odisha), Thiruvananthapuram (Kerala), Rajkot (Gujarat), Kopparthy (Andhra Pradesh),  with an investment of ₹2,800 crore. These centres will be set up in the Public-Private Partnership (PPP) mode and will provide local MSME access to advanced manufacturing technologies, skill development, and   business advisory services.

• Outcome: 1,00,000 MSME to benefit from technology access, and 3,00,000 youth to be trained in the next 5 years.

8. ZED 2.0 Certification Scheme for Quality Improvement

• Launch Date: 11th September 2024, Ranchi

• Details: ZED 2.0 launched by Ministry of MSME promotes Zero Defect, Zero Effect manufacturing practices. Under this scheme, 5 lakh MSME will receive support, with a budget of ₹500 crore allocated to aid migration to higher levels of ZED certification at reduced cost of certification.

• Outcome: 5 lakh MSME registered, with enhanced quality standards and sustainability practices.

9. MSME Hackathon 4.0 for Innovation 

• Launch Date: 11th September 2024, Ranchi

• Details: The MSME Hackathon 4.0 promotes innovation and technological adoption among MSME, particularly for young entrepreneurs from 18 years to 35 years of age. The scheme provides financial assistance of up to ₹15 lakh per idea, focusing on       traditional trades covered under PM Vishwakarma scheme, green energy, frontier technologies, and export enhancement.

• Outcome: 500 innovators are expected to benefit, promoting startup incubation and innovation.

 Poster campagin for MSME IDEA Hackathon 4.0

10. Laying of Foundation Stone for Modern Technology Centre at Bokaro, Jharkhand

• Launch Date: 11th September 2024, Ranchi

• Details: The foundation stone for a Technology Centre at Bokaro was laid, with an investment of ₹198 crore. The centre will provide technological support, skill  development, and business advisory services to 8,000 MSME in and around Bokaro.

• Outcome: 22,000 youth to be trained, enhancing employability in the next 5 years.

 Laying foundation stone for Technology Centre at Bokaro on 11th September 2024

11. Inauguration of Centre for Rural Enterprise Acceleration through Technology (CREATE) at Leh

• Inauguration Date: 14th September 2024, Leh

• Details: The CREATE Centre, operationalized at Leh will focus on providing support to the Pashmina Wool Processing sector and extraction of essential oils from local produce, with facilities for training and product development. The centre aims to enhance local productivity and empower artisans, especially women, in an environment friendly and sustainable manner.

•  Outcome: Enhanced employment opportunities and remuneration for local artisans, particularly in pashmina wool processing and bio-processing. 

Pashmina Wool Processing Centre at CREATE at Leh

12. MoU of Cooperation and Collaboration Between Ministry of MSME and US-Small Business Administration (US-SBA)

• Signing Date: 13th August 2024, New Delhi

• Details: A Memorandum of Understanding (MoU) was signed between the Ministry of MSME, Government of India and the United States Small Business    Administration (US-SBA) which aims at mutual cooperation to promote MSME from both countries. The agreement places particular focus on transiting MSME in to green technology and women entrepreneurs. Sharing best practices and Digitisation of MSME are also part of the agenda. Dialogue is in progress to conduct first virtual webinar for women entrepreneurs, their capacity building, and mentorship.

• Outcome: Bilateral cooperation and collaboration on MSME initiatives, promoting global competitiveness and capacity building of women entrepreneurs.

Signing of MoU between Ministry of MSME, Government of India and US-SBA on 13th August 2024

These achievements are reflective of the Government of India’s commitment to ensuring the sustainable growth of the MSME sector, fostering innovation, and enhancing job Creation.