Lok Sabha Question No. 1738 (UNSTARRED), answered on 2024-12-05
Subject: Challenges Faced by MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri K C Venugopal

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK  SABHA UNSTARRED QUESTION NO.1738 TO BE ANSWERED ON 05.12.2024

## CHALLENGES FACED BY MSMEs

1738. SHRI  K C VENUGOPAL:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Government has taken note of the fact that Micro, Small & Medium Enterprises (MSMEs) face several problems such as lack of access to  global markets, inadequate infrastructure facilities,  including  power,  water,  roads,  low  technology  levels  and  lack  of  access  to  modern technology,  lack  of  skilled  manpower  for  manufacturing,  services,  marketing,  and  multiplicity  of labour laws and complicated procedures associated with compliance of such laws; and
- (b) if so, the corrective steps being taken/proposed to be taken by the Government to solve these major problems?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) to (b): Government follows a focused and multipronged strategy for MSME and has inter alia taken  measures  to  address  multiple  challenges  faced  by  MSMEs  including  access  to  infrastructure, access to technology, skilled manpower and global markets as well as compliance burden, economic growth, access to funding, capital infrastructure.

The  Ministry  of  Micro,  Small  and  Medium  Enterprises  is  implementing  International  Cooperation Scheme to encourage MSMEs to export of their products to other countries and facilitates their participation in the international  exhibitions/fairs/buyer-seller  meets  held  abroad  and  for organizing  international  conference/seminar/workshops  in  India.  Further,  for  Capacity  Building  of First Time Exporters (CBFTE), a reimbursement is provided to new MSE exporters for costs incurred on Registration cum-Membership Certification (RCMC) with EPCs, Export Insurance Premium and Testing and Quality Certification for exports. A new initiative, MSME TEAM (Trade Enablement and Marketing) is being implemented with an objective to support MSMEs by integrating them with the Open Network for Digital Commerce (ONDC) to promote e-commerce in India.

Further,  the  Ministry  of  Micro,  Small  and  Medium  Enterprises  has  developed  a  dedicated support system for export promotion in MSME Sector by establishing 65 Export Facilitation Centres (EFCs)  in  its  field  organizations  namely  MSME-Development  and  Facilitation  Offices,  MSME Technology Centres and MSME Testing Centres.  An MoU between Ministry of MSME and DGFT has also been signed for validation & issuance of IEC.

Under the Micro and Small Enterprises Cluster Development (MSE-CDP), financial assistance upto  70%  of  Project  cost  is  being  provided  by  Government  of  India  for  establishment  of  Common Facility  Centres  (CFCs)  and  Infrastructure  Development.  For  the  development  of  MSMEs  in  North Eastern Region, a special scheme for 'Promotion of MSMEs in North Eastern Region and Sikkim', is in  operation  which  provides  financial  assistance  up  to  90%  of  the  total  project  cost  for  creating  / upgrading infrastructure facilities including setting up new and modernizing existing Mini Technology Centres  and  developing  Industrial  Estates.  These  Central  Sector  schemes  run  with  the  active cooperation of State Governments.

A network of Technology Centres/Tool Rooms has  been established by the Government in the country to support MSMEs by providing access to advance manufacturing technologies, training & skilling  and  business  consultancy  services  to  make  them  competitive.  18  Technology  Centres  were established between 1969 and 1999. Another 15 Technology Centres are being established. To further increase the  geographical  outreach  of  these  Technology  Centres  across  the  country,  the  Ministry  of MSME  is  establishing  20  new  Technology  Centres,  along  with  100  Extension  Centres  under  the Scheme 'Establishment of New Technology/Extension Centres' in Public-Private Partnership Mode across the country. These Centres are conducting various skill development training programmes for the educated youth and technicians of industries.  Various levels of courses, viz., certificate, diploma, advanced diploma, post diploma, post graduate diploma and post graduate courses are also offered by these Centres.

'MSME Champions' Scheme with three sub schemes, MSME-Sustainable (ZED) Certification Scheme, MSME-Competitive (LEAN) Scheme and MSME-Innovative Scheme (Incubation, Design& IPR) is a holistic approach to unify, synergize and converge various schemes and interventions with a single purpose to enable our MSMEs to become globally competitive.

Raising  and  Accelerating  MSME  Performance  (RAMP)  is  a  World  Bank  supported  Central Sector Scheme aimed at providing support to Micro, Small and Medium enterprises in the country, through  increased  access  to  technological  upgradation,  market,  and  to  credit  by  strengthening  of Central and State agencies.

Government  has  notified  4  Labour  Codes  towards  simplification  of  multiple  labour  laws  to reduce compliance burden.

'Udyam  Registration'  has  been  launched  for  MSMEs,  for  Ease  of  Doing  Business  w.e.f. 1.7.2020  with  a  new  revised  criteria  for  classification  of  MSME.  Udyam  is  a  hassle  free,  selfdeclaration based, digital and voluntary registration. A total of 5.53 crore MSMEs have registered on Udyam Portal with an employment of 23.30 crore up to 30.11.2024.

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