UN MSMEs Day

In News

The United Nations commemorates 27th June as World Micro, Small and Medium Enterprises (MSMEs) Day.

About

• History: The United Nations (UN) designated this day as Micro, Small and Medium-sized Enterprises Day through a resolution passed in the UN General Assembly in April 2017.
  • In May 2017, a program titled ‘Enhancing National Capacities for Unleashing Full Potentials of MSMEs in Achieving the SDGs in Developing Countries’ was launched.
  • It has been funded by the 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Fund.
• 2021 Theme: MSME 2021: Key to an inclusive and sustainable recovery.
• Significance: It recognise the contribution of these industries in the implementation of the Sustainable Development Goals (SDGs).
  • According to the United Nations (UN), as many as 90 per cent of businesses are generated from MSMEs and these businesses provide 60 to 70 per cent of employment. The contribution of MSME to Gross Domestic Product (GDP) worldwide is 50%. 
  •  To ensure an equitable and sustainable post-Covid-19 recovery.

Micro, Small and Medium Enterprises (MSMEs) 

• According to the recently proposed definition, Micro, Small and Medium Enterprises (MSMEs) will be classified as:

Significance & Role of MSMEs in India

• MSMEs are the second largest employer after the agriculture sector, gives employment to about 11 Crore people with low capital and technology requirements.
• They account for 30 % of the country’s GDP and half of the country’s exports come from products and services within this sector.
• They help in the promotion of industrial development in rural areas, capacity building and local resource mobilisation.
• They create an inclusive and sustainable society through the creation of non-farm livelihood, they promote balanced regional development and gender equity.
• Considering the above points, they are called ‘Growth Engine of the Nation’.

Problems/Challenges MSMEs are Facing

• Inaccessibility of credit: The sector always funds starved and banks are reluctant to fund them, and delays in payments to MSMEs from their buyers.
• Unavailability of raw materials: Raw material obtaining is the major challenge to them. 
• Inaccessibility of market:  Lack of infrastructure and demand due to lockdown.
• Quality issues: Lack of quality assurance certification and marketing of the final goods.
• Lack of skilled manpower & Infrastructure: Mostly are present in rural areas, low ICT, lack of trained manpower, inadequate transport facilities, electricity are major issues.

Measures Taken

• Recently, the government has announced the stimulus package focused on the MSME sector under Atma Nirbhar Bharat Abhiyan.
• Credit guarantee of Rs 3 lakh crore, revised definition for better means of identifying MSMEs, creation of a fund with a corpus of Rs. 50,000 crore for MSMEs, ReStart programme of Andhra Pradesh, “Smart Industrial Village” Policy, Promoting “Swadeshi” Ideology via Policy & Strategy Drafting and Safe Trade Policy.
• Others include- ASPIRE scheme, Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme (CLCSS), Zero Defect Zero Effect model etc.
• CHAMPIONS Portal to assist Indian MSMEs march into the big league as National and Global CHAMPIONS by solving their grievances and encouraging, supporting, helping and hand holding them.
• MSME Samadhan to enables them to directly register their cases about delayed payments by Central Ministries/Departments/CPSEs/State Governments.

Source: HT