Home AHC RO/ARO Agriculture, Commerce & Trade Micro, Small and Medium Enterprises (MSMEs)Micro, Small and Medium Enterprises (MSMEs)

Micro, Small and Medium Enterprises (MSMEs)Micro, Small and Medium Enterprises (MSMEs)

Micro, Small, and Medium Enterprises form the backbone of India and Uttar Pradesh's economy, driving industrialization, exports, and employment generation. This topic is exceptionally vital for Allahabad High Court RO/ARO and UPPSC examinations due to policy updates, classific...Micro, Small, and Medium Enterprises form the backbone of India and Uttar Pradesh's economy, driving industrialization, exports, and employment generation. This topic is exceptionally vital for Allahabad High Court RO/ARO and UPPSC examinations due to policy updates, classific...

Mediumमध्यम 60 min totalकुल 60 मिनट

Chronological Evolution of Micro, Small and Medium Enterprises (MSMEs)

Click on any milestone card below to view standardizing achievements and timeline parameters.

Micro, Small and Medium Enterprises (MSMEs) Core Study Notes

Micro, Small, and Medium Enterprises form the backbone of India and Uttar Pradesh's economy, driving industrialization, exports, and employment generation. This topic is exceptionally vital for Allahabad High Court RO/ARO and UPPSC examinations due to policy updates, classification criteria revisions, and Uttar Pradesh's 'One District, One Product' (ODOP) integration.

Revised Classification Criteria (Atmanirbhar Bharat)

The MSME definition was revised effective July 1, 2020, under the Atmanirbhar Bharat Abhiyan, introducing turnover criteria and merging manufacturing with services.

  • Micro Enterprise (सूक्ष्म उद्यम): Investment in Plant and Machinery or Equipment does not exceed ₹1 Crore AND Annual Turnover does not exceed ₹5 Crores.
  • Small Enterprise (लघु उद्यम): Investment in Plant and Machinery or Equipment does not exceed ₹10 Crores AND Annual Turnover does not exceed ₹50 Crores.
  • Medium Enterprise (मध्यम उद्यम): Investment in Plant and Machinery or Equipment does not exceed ₹50 Crores AND Annual Turnover does not exceed ₹250 Crores.
  • Exclusion Rule for Turnover: Exports of goods or services or both shall be excluded while calculating the annual turnover of any enterprise for classification.

Key Schemes & Institutional Support for MSMEs

Various central and state initiatives provide financial backing, technology upgradation, and market access to MSMEs.

  • Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): Launched by GOI and SIDBI to provide collateral-free credit to micro and small enterprises up to a specified limit.
  • Prime Minister's Employment Generation Programme (PMEGP): A credit-linked subsidy scheme administered by KVIC for generating self-employment opportunities through micro-enterprises in non-farm sector.
  • Raising and Accelerating MSME Performance (RAMP): A World Bank-assisted central sector scheme to improve performance, market access, and technology upgradation of MSMEs.
  • MSME Samadhaan & Sambandh Portals: Samadhaan monitors delayed payments to MSMEs under MSMED Act 2006, while Sambandh monitors public procurement policy compliance by CPSEs.

Uttar Pradesh MSME Sector & ODOP Integration

UP is a leading state in MSME concentration, championed by progressive state policies and the flagship One District, One Product initiative.

  • One District, One Product (ODOP) Scheme: Launched by UP Government in 2018 to promote indigenous and specialized products across all 75 districts (e.g., Brassware in Moradabad, Locks in Aligarh, Carpets in Bhadohi).
  • Mukhya Mantri Yuva Swarojgar Yojana: UP state scheme aimed at providing financial assistance for establishing manufacturing units up to ₹25 Lakhs and service sector units up to ₹10 Lakhs.
  • Vishwakarma Shram Samman Yojana: UP state initiative to provide skill upgradation training and modern toolkits to traditional artisans and craftsmen (weavers, tailors, potters, etc.).
  • UP MSME Act (Amendment) 2020: Provided exemption from various approvals and inspections under state laws for the first 1000 days of setting up a new enterprise.

Institutional Framework: SIDBI, KVIC & NSIC

Key apex institutions governing financing, promotion, and development of micro and small enterprises in India.

  • SIDBI (Small Industries Development Bank of India): Established on April 2, 1990, under an Act of Parliament, headquartered in Lucknow, acting as the principal financial institution for MSMEs.
  • KVIC (Khadi and Village Industries Commission): Statutory body established in 1957 under the Khadi and Village Industries Commission Act, promoting khadi and rural industries.
  • NSIC (National Small Industries Corporation): ISO certified PSU established in 1955 under Ministry of MSME, promoting and fostering growth of MSMEs by providing raw material assistance and marketing support.

Practice Zone: 50 Questions

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