MSME (Micro, Small, And Medium Enterprises) plays a crucial role in the country’s growth. It contributes a significant proportion to GDP, manufacturing, and exports. MSME decided to rationalize all the MSME Schemes slowly to improve their reach. MSME has many schemes and benefits. However, the major issue is that many are unaware of these schemes or plans. The MSME has considered redefining the purpose of these schemes sector by sector.
MSME has recently decided to rationalize all its policies and schemes. The CII Annual Business Summit 2024 occurred from 17 May to 18 May. The summit witnessed urgent attention to the MSME sector. According to the details, 300 schemes for MSMEs are available in the market. However, the schemes are either complex or need to be more comprehensible. Secretary of the Department of Financial Services Vivek Joshi highlighted the needs and attention MSME needs.
As per Vivek Joshi’s observation on Friday, 17 May 2024, MSME schemes face language issues on a higher level. Several schemes are not available in regional languages. Apart from that, these schemes need to be made more understandable. The focus is on MSME more than any other department, as MSME has a large share in the growth of India’s economy. The country will become the third-largest economy in the next three years. However, this will only be possible with the development of MSMEs. The small businesses in the country need to provide more support and assistance.
As per the details, India’s MSME has a 35% contribution to the country’s GDP, 40% to Exports, and more than 40% to manufacturing. Thus, it controls almost half of the country’s growth. Therefore, restructuring and analyzing the existing schemes will help reduce the current complications for MSMEs. Apart from that, MSME’s recent scheme has also impacted the business of many vendors. Those who registered as an MSME were now steeping back from their registration as the dealers took away their sales because of the 45-day payment rule. Under this rule, any buyer has to make payment within 45 days of its purchase from any MSME. However, the scheme led to several consequences. Many MSMEs needed to un-register themselves from the portal as they wanted their business back from the dealers. All the dealers moved to large enterprises for orders because they could not make payments within 45 days. Also, MSMEs have many complaints about not receiving their payments on time.