ANNUAL REPORT - Dc Msme

INTRODUCTION
1.1 BACKGROUND
1.1.1 Micro, Small and Medium
Enterprises (MSMEs), including khadi
and village/rural enterprises credited
with generating the highest rates of
employment growth, account for a
major share of industrial production
and exports. They also play a key role
in the development of economies
with their effective, efficient, flexible
and innovative entrepreneurial
spirit. The socio-economic policies
adopted by India since the Industries
(Development and Regulation) Act,
1951 have laid stress on MSMEs as
a means to improve the country’s
economic conditions.
1.1.2 MSMED Act was notified in
2006 to address policy issues affecting
MSMEs as well as the coverage and
investment ceiling of the sector. The
salient features of the Act include:
• Setting up of a National Board
for MSMEs
• Classification of enterprises
• Advisory Committees to support
MSMEs
MSME
CHAPTER
• Measures for promotion,
development and enhancement
of MSMEs
• Schemes to control delayed
payments to MSMEs
• Enactment of rules by State
Governments to implement
the MSMED Act, 2006 in their
respective States
On 9 May 2007, subsequent to an
amendment of the Government of
India (Allocation of Business) Rules,
1961, the Ministry of Small Scale
Industries and the Ministry of Agro
and Rural Industries were merged to
form the Ministry of Micro, Small and
Medium Enterprises (MSME). This
Ministry now designs policies and
promotes/facilitates programmes,
projects and schemes and monitors
their implementation with a view to
assisting MSMEs and help them scale
up.
1.1.3 The primary responsibility
of promotion and development of
MSMEs is of the State Governments.
However, the Government of
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Annual Report
2010-11