INTRODUCTION

‘State of the MSME’ is a survey instituted by the India SME Forum, which is India’s largest Not For Profit organisation for Micro, Small & Medium Enterprises (MSME). There have been constant discussions in seminars and conferences on identifying the actual size of the MSME sector, its contribution to GDP & employment generation. It has been repeatedly pointed out that most surveys conducted either by the government or other agencies either have a small footprint or only reflect the economics and the opinion of a tiny sample of MSMEs. As a matter of fact the numbers put out by various agencies, including those of the government, at various periods of time are confusing, to say the least. Also most of the time in case of private agencies, the surveys are sponsored, so generally reflect the point being put across by the sponsors …

The MSME ecosystem has take a step forward when the MSMED Act was passed 2006, but issues remained.  MSMEs had to shell out anywhere between Rs 5,000 to Rs 50,000 to receive certification. This  government in its push for Ease of Doing Business, abolished the need for certification which used to be provided by the district industry centres or district industry offices and made the certification procedure online on the basis of self certification.  The government also initiated a host of changes like Samadhan, which is enabling  recovery of payments due to MSMEs, Sambandh which promotes procurement by public sector units from MSMEs, Interest subvention for MSME loans, MUDRA Small loans,  Reservation of 3% for women entrepreneurs in public procurement policy and reservation of 4% for SC/ST entrepreneurs …