MSME markets schemes more aggressively


Awareness programmes are being organised to highlight the various promotional and development schemes for MSEs

By EB Bureau

The government has woken up to the fact that its schemes and policies need to be marketed well. The electronics industry in India, which is dominated by SMEs, needs government support and incentives, and these schemes could benefit them immensely. This is why the Development Institute (DI) of the Ministry for Small, Micro and Medium Enterprises (MSME), in association with the National Small Industries Corporation Ltd (NSIC), recently organised an awareness programme to promote its schemes for micro and small enterprises (MSEs).

Focusing on enhancing the competitiveness of both manufacturing and service entities, the event highlighted vendor development schemes, NSIC schemes, the arrangement of funds and bank loans, brand building methods and the importance of certification. Suresh Yadavendra, director, MSME DI, while addressing the industry, said, “To survive in the industry, MSEs should grow at a healthy rate as it is crucial for the overall growth of the manufacturing sector. For this to happen, MSEs have to become competitive. They should pay more attention to high quality, high levels of performance and high productivity.” He urged the associations to spread awareness about the MSME schemes in their respective areas.


Two major schemes for MSEs

The MSME organises such awareness programmes from time to time to educate the MSEs about its two major programmes—the National Manufacturing Competitiveness Programme (NMCP) and the Micro and Small Enterprises Cluster Development Programme (MSE-CDP). The National Manufacturing Competitiveness Council (NMCC) will give shape to the schemes. “The implementation of these schemes will be based on the public-private partnership (PPP) model with financial contribution from special purpose vehicles (SPV), associations and MSME units,” informed Suresh Yadavendra.

Under the NMCP, 10 schemes will be launched (see box). While the NMCP would help in improving the competitiveness of SMEs, the cluster development programme encourages SMEs under the same sector to form clusters and avail the benefits of common facilities. MSME will undertake an elaborate study with three objectives—to identify similar industries, perform a diagnostic study to verify the viability of the cluster, and finally submit a detailed report to the government for approval—on behalf of the companies concerned. Even unregistered industries can be included under the cluster but in a designated area assigned by the government. The MSME will not only provide financial assistance through this scheme (70-90 per cent cost of the cluster) but will also help in acquiring land and buildings through various state governments.

One of the 10 schemes under the NMCP, the marketing assistance and support to MSEs, which is now operational, aims to popularise bar code registration and motivate MSEs to adopt bar code certification on a large scale to sell their products worldwide. Under the scheme, the government will reimburse MSEs 75 per cent of the annual recurring fee for barcode certification for the first three years.


10 schemes under NMCP

  • Marketing support/assistance to MSMEs (like barcode implementation)

  • The development of entrepreneurial and managerial skills in SMEs through incubators

  • Enabling the manufacturing sector to be competitive through quality management standards and quality tech tools

  • Building awareness about intellectual property rights

  • Lean manufacturing competitiveness scheme

  • A proposal to put up common mini tool rooms

  • Setting up design clinics to build local expertise in the design field

  • Marketing assistance and technology upgradation scheme

  • Quality and technology upgradation support

  • Promoting use of ICT in the manufacturing sector



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