Category: MSME

Collaboration with Foreign Companies under Atmanirbhar Bharat (Ministry of Commerce & Industry Press Release dated 08th Dec 2021)

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The Government announced Atmanirbhar Bharat Abhiyan – a special economic package of Rs20  lakh crore on 12.05.2020 with the aim of making the country self-reliant and to focus on local manufacturing. It focuses on preparing the country for tough competition in global supply chains, enhance the ease of doing business, empower MSMEs, attract investments including FDI and strengthen the policies for Make in India. The package comprises of several long-term Scheme/Programmes intended to make the country self-reliant. These Schemes/Programmes are being implemented by various Ministries/Department.

Government has taken a number of effective measures to make the country self-reliant. Some the key measures are: special economic and comprehensive package of Rs. 29.87 lakh crore, 34.5 percent increase in capital expenditure in Union Budget 2021-22, and relief Package of Rs. 6.29 lakh crore in June, 2021, Production-Linked Incentive (PLI) Scheme with an outlay of Rs. 1.97 Lakh Crore for 13 key sectors, Rs. 3 Lakh Crore Emergency Working Capital Facility for Businesses, including MSMEs, Rs. 45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs , Rs. 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers, launch of the PM GatiShaki – a National Master Plan for multi-modal connectivity, reducing compliance burden on citizen and business to simplify, decriminalize & remove redundant laws, a liberal and transparent policy for attracting Foreign Direct Investment (FDI), launch of the National Single Window System (NSWS) as a one-stop for taking all the regulatory approvals and services in the country, building a strong eco-system for nurturing innovation and Startups in the country with the help of schemes such as Fund of Funds for Startups Scheme (FFS), and Startup India Seed Fund Scheme (SISFS) schemes, achieving integration of India Industrial National Land Bank (GIS Land Bank) in states and Make in India for world.

No Global tenders are invited for Government tenders of uptoRs. 200 crore.  Beyond Rs. 200 crore, work by various central Ministries/Departments are undertaken based on merits of the proposal submitted by companies.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri SomParkash, in a written reply in the Lok Sabha today.

Assistance for Food Processing Industries (Ministry of Food Processing Industries Press Release dated 30 Nov 2021)

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In order to ensure overall development of Food Processing Industries in the country including to deal with challenges arising out of COVID-19, Ministry Food Processing Industries (MoFPI) has undertaken a number of initiatives as part of the Aatmanirbhar Bharat Initiative, which includes –

  1. Centrally Sponsored -PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) for providing financial, technical and business support for setting up/upgradation of 2 lakh micro food processing enterprises across the country during five years from 2020-21 to 2024-25 based on One District One Product (ODOP) approach with an outlay of Rs.10,000 crore.
  2. The expansion in scope of “Operation Greens scheme” under Pradhan Mantri Kisan SAMPADA Yojana from Tomato, Onion & Potato (TOP) from Tomato, Onion and Potato (TOP) to all notified fruits & vegetables (TOTAL).
  3. Production Linked Incentive scheme (PLIS) for Food Processing Sector with an outlay of Rs 10,900 Crore to support creation of global food manufacturing champions and support Indian brands of food products in international market.

Union Home Secretary, vide Order No 40-3 / 2020- DM –I (A) dated15thApril, 2020 dated, addressed to all Chief Secretaries/Administrators of States/ Union Territories, exempted Food Processing Industries in rural areas, apart from various agriculture and related activities from lockdown restrictions, subject to adherence of prescribed COVID norms. In order to facilitate food processing units resume their operations, MoFPI had established a dedicated Grievance Cell and a Task Force during initial phase of outbreak of COVID-19 Pandemic itself to liaison with state authorities. A total of 585 industry related issues were resolved during the COVID lockdown period in 2020 by the Cell.

This information was given by Minister of State for M/o Food Processing Industries, Shri Prahlad Singh Patel in a written reply in Lok Sabha today

National Single Window System, Portal now hosts approvals across 18 Central Departments and another 14 Central Dept. & 5 States will be added by December’21 (Ministry of Commerce & Industry Press Release dated 27 Nov 2021)

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National Single Window System, Portal now hosts approvals across 18 Central Departments and another 14 Central Dept. & 5 States will be added by December’21.” -Shri Piyush Goyal


Industrial Land Bank now Integrated with GIS systems of 17 states, the ILB has a database of more than 4,000 industrial parks mapped across an area of 5.5 lakh hectare of Land– Shri Goyal

New India will be powered by Aatmanirbhar Bharat & Ease of Doing Business, says Shri Piyush Goyal

“Government’s 5 ‘Is’ approach to make India self-reliant: Intent, Inclusion, Innovation, Infrastructure & Investment”

“Ideate in India, Innovate in India & Make in India – For the World”, Minister’s message to Industry

Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal has said we have to find new ways of financing infrastructure. Addressing the CII National Conference on ‘Ease of Doing Business for Aatmanirbhar Bharat’, Shri Goyal said a New India will be powered by Aatmanirbhar Bharat & Ease of Doing Business (EoDB).

“The very fact that the Prime Minister spoke of going into the Top 50 just changed the way all of us looked at, – government and industry,” adding, “The Prime Minister is already edging us, – 50 was an initial target I set in the first term, now you have to be more ambitious, – you should be in the Top 25!” said Shri Goyal.

Noting that the Top 40 countries are “very highly Developed countries, Shri Goyal pointed out “piercing that curtain and then doing better than them is a Big Challenge!” “So! That’s what we are here for!” said Shri Goyal, quoting the Prime Minister.

Shri Goyal listed out the Government’s 5 ‘Is’ (Intent, Inclusion, Innovation, Infrastructure & Investment) approach to make India self-reliant. “Believe me! The most Developed countries and some of the countries who are currently on a fast trajectory of growth, if you study their growth story, you will find it one of their biggest pillars of growth story is Innovation! There are new ideas, new ways of doing things,” he said.

Quoting the Prime Minister Shri Narendra Modi, Shri Goyal said the ultimate aim of EoDB reforms is to achieve Ease of Living for citizens. “I think, today India means Business and the world recognizes that. With political stability, policy continuity, pro-growth & pro-business thinking in the Government and in our young entrepreneurs and the Startups, in our traditional businesses, this is the time to really go for it.”

Shri Goyal said the Government is undertaking five structural reforms for EoDB:

1. National Single Window System, – a one-stop-shop for approvals & clearances needed by investors & businesses. It includes Know Your Approval, Common Registration Form, Document repository, etc. Portal hosts approvals across 18 Central Departments & 9 States. Shri Urging all the industry stakeholders to use the NSWS and give feedback & suggestions, Goyal said, “Further, another 14 Central Dept. & 5 States will be added by December’21, but our ambition is much, much more.”

2. Industrial Land Bank, – a GIS-based portal, serving as a one-stop repository of all industrial infrastructure related information. Integrated with GIS systems of 17 states, the ILB has a database of more than 4,000 industrial parks mapped across an area of 5.5 lakh hectare of Land. “You will be amazed, Ladies & Gentlemen, there’s 1 lakh ha of land available for industry, for business across the country,” said Shri Goyal.

3. Regulatory Compliance Portal, – it’s a real-time dashboard under direct monitoring of the Cabinet Secretary to track progress. States & UTs have eliminated burdensome compliance by removal of unnecessary licenses, permissions, rationalization of renewals, self-regulation and self- certification should be the way forward.

4. State Reforms Action Plan (SRAP), – Centre working with the states trying to promote healthy competition in a spirit of cooperative federalism among states & led to digitization of procedures. Shri Goyal said, a 301-point State Reforms Action Plan, 2020 has been shared with the States/UTs covering 15 reform areas.

5. PM Gati Shakti, – launched to build next-Gen infrastructure, the Gati Shakti portal provides multimodal connectivity to ensure integrated & seamless connectivity. Underlining that Gati Shakti will break departmental silos & institutionalize holistic planning, Shri Goyal said all Departments will now have visibility of each other’s projects through a centralized portal.

Shri Goyal said our Industry will have to lead the way in India’s endeavour to become Aatmanirbhar. “I would like to emphasis on 4 points for enhanced industry contribution,” he said.

1. For Indian Inc to be the best, need to have a greater appetite for taking risks.

2. “Holistic solution” to commercial disputes problems.

3. Need to “Look beyond cost” for building a “Resilient Ecosystem”.

4. Greater focus on Innovation, Sustainability and “Brand India”.

Making a quote, “Opportunity does not knock, it presents itself when you are actively looking for it”, Shri Goyal said India today is the new land of opportunities, inviting the world to “Ideate in India, Innovate in India & Make in India – For the World.”

Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Services Sector (MSME Press Release dated 19 Nov 2021)

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The scheme will help in meeting the technology related requirements of enterprises in the services sector and has a provision of 25% capital subsidy for procurement of Plant & Machinery and service equipments through institutional credit to the SC-ST MSEs without any sector specific restrictions on technology upgradation.

Shri Narayan Rane, Union Minister for MSME launched Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Services Sector today Guwahati.

Model Tender Documents (MTDs) for Procurement of Goods and non-Consultancy Services (वस्‍तुओं और गैर-परामर्श सेवाओं की खरीद के लिए मॉडल निविदा दस्तावेज (एमटीडी) (MoF Press Release dated 29th Oct 2021)

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Finance Secretary Dr T.V. Somanathan releases Model Tender Documents (MTDs) for Procurement of Goods and non-Consultancy Services


MTDs specifically cater to needs of e-procurement, easing digitization process of Public Procurement & help in achieving goal of Digital IndiaPosted Date

वित्त सचिव डॉ. टी वी सोमनाथन ने वस्‍तुओं और गैर-परामर्श सेवाओं की खरीद के लिए मॉडल निविदा दस्तावेज (एमटीडी) जारी किए


एमटीडी से विशेषकर ई-खरीद की जरूरतें पूरी होती हैं,  सार्वजनिक खरीद की डिजिटलीकरण प्रक्रिया आसान हो जाती है और डिजिटल इंडिया के लक्ष्य को प्राप्त करने में मदद मिलती है

Finance Secretary & Secretary Expenditure, Dr T.V. Somanathan here today released Model Tender Documents (MTDs) for Procurement of Goods and non-Consultancy Services as part of continuous process of review of existing rules & procedures as emphasised by the Hon’ble Prime Minister in his Independence Day speech this year.

MTDs specifically cater to needs relating to e-procurement thereby easing the process for adoption of e-procurement and furthering the ambition of convenient and efficient e-governance of the Government. Such initiatives shall help in achieving the goal of Digital India by easing and standardising the digitization process of Public Procurement.

Tender documents are the critical touch point for the Government with industry and are, therefore, a critical vehicle for implementing policy initiatives on the ground. Uniform sets of tender documents permit Government to express its policies effectively, consistently and uniformly. Uniformity in interpretation and application of public procurement policies and initiatives reflect clarity of application, thereby, increasing compliance and enhancing public confidence in procurement process. Further, apart from sharing best procurement practices, uniform tender documents amplify the positive impact of policy initiatives, bringing economies of scale and increasing competition. They create more efficient market conditions for realising value for tax payers money. Bidders also get broader market access for their products.

Accordingly, Model Tender Documents (MTDs) have now been developed for the procurement of Goods and non-Consultancy Services. These MTDs rationalise and simplify the structure of tender documents. Besides aligning provisions with various procurement policies of the Government, like policies related to Micro and Small Enterprises, preference to Make in India and benefits to Start-ups, MTDs incorporate national and international best practices. The MTDs have been developed after a two stage, extensive consultation with Ministries/ Departments/ Central Public Sector Undertakings, other organisations and individual experts.

MTDs issued by the Department of Expenditure , Ministry of Finance  will be guiding templates . In keeping with the Government’s Digital India thrust, the MTDs are being issued in soft template for enabling easy customisation by user departments. Ministries/ Departments shall be competent to suitably customise this document to suit their local/ specialised needs. A separate detailed Guidance Note, as a guide to use of each MTD has also been prepared to help the procuring officials in utilising each MTD. Model Tender Documents, issued by Department of Expenditure (DoE), Ministry of Finance, will be guiding templates.

Government organisations procure various goods and non-consulting services in order to comply with their duties and responsibilities. To improve good governance, transparency, fairness, competition, and value for money in public procurement, the Government of India has taken a number of significant policy initiatives in public procurement in the recent past. The General Financial Rules were issued after comprehensive review in March, 2017. Additionally three procurement Manuals, the Manual for Procurement of Goods, 2017, Manual for Procurement of Consultancy and Other Services, 2017 and Manual for Procurement of Works, 2019, have also been developed.

The formulation and release of these Model Tender Documents are a part of continuous process of review of existing rules and procedures and being monitored by Cabinet Secretary as a special campaign during 2nd October, 2021 to 31st October, 2021.

Documents Links:

https://doe.gov.in/sites/default/files/Model%20Tender%20Document%20for%20Procurement%20of%20Goods_0.pdf

https://doe.gov.in/sites/default/files/Model%20Tender%20Document%20for%20Procurement%20of%20Non%20Consultancy%20Services.pdf

Launching India Export Initiative and IndiaXports 2021 Portal (Ministry of MSME Press Release dated 29th Sept 2021)

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Union Minister for MSMEs Shri Narayan Rane virtually inaugurated the India Export Initiative and IndiaXports 2021 Portal of India SME Forum in New Delhi today. He was accompanied by MoS Shri Bhanu Pratap Singh Verma and senior officers of the Ministry.

Speaking on the occasion, Shri Rane expressed confidence of India driving the export growth with the help of MSMEs and achieving the target of 400 Billion USD by this fiscal and achieving the challenging target of 1 trillion in exports by 2027. He said, to enhance exports and ensure localization it is essential to make the country a global manufacturing powerhouse by improving India’s manufacturing base. This can be achieved by scaling up India’s competitive advantage or augmenting the competitiveness of MSMEs and make India a preferred destination for manufacturing for the world. The Minister said, to reduce the trade balance and reduce imports, MSME will play an import role and it can be done through increasing their manufacturing capabilities. He added that adopting a holistic approach will make India a global manufacturing and leading export hub.

MoS Shri Bhanu Pratap Singh Verma recalled the time when India had a major share in global trade because of country’s powerful trade and exports. He said, MSME exports are going to play a role of a catalyst in restoring the strength of the Indian economy.With more than 63 million MSMEs spread across the geographical expanse of India, MSMEs have been contributing nearly 40% of overall India’s exports, contributing to approx. 6.11% of the country’s manufacturing GDP & 24.63% of the GDP from services sector. 

IndiaXports aims to orient MSMEs free of cost, with the objective of focussing on the untapped export potential in existing tariff lines and supporting MSMEs in order to grow the number of exporting MSMEs and increase MSME exports by 50% in 2022 and contributing to the PM’s dream of the US $5 Trillion Economy.

  This initiative features an Info Portal which serves as a knowledge base for exports by Indian MSMEs with the required information related to export potential for all the 456 tariff lines along with the potential markets as well as trends in exports, export procedures and lots more. Apart from an export help desk, Instructor led orientation will also be provided to MSMEs through a series of sessions for specific sectors highlighting the opportunities in specific products in international markets. The initiative targets 1 lakh+ MSMEs desirous of knowing more about exports and hand holding 30,000+ MSMEs to start exporting, doubling the base of active exporters.

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MJPS/MS/jkRelease Id :-1759307

MSME Ministry has set a target to enhance its contribution to GDP up to 50% by 2025 as India becomes a $5 trillion economy

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Union Minister Dr Jitendra Singh says, new business enterprises are heavily dependent on scientific technology in contemporary India


Delivers the keynote address at the 7th India International MSME Trade and Investments Expo Summits 2021 in New Delhi today

MSME Ministry has set a target to enhance its contribution to GDP up to 50% by 2025 as India becomes a $5 trillion economy

Ministry of Science & Technology Press Release dated 19 Aug 2021

Union Minister of State (Independent Charge) Science & Technology; Minister of State (Independent Charge) Earth Sciences; MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh today said that new business enterprises are heavily dependent on scientific technology and for the industry as well as big and small enterprises to realise their optimum utilisation in contemporary India, not only the scientific applications but also scientific temper and scientific attitude will be essential for the entrepreneurs to succeed.

Delivering the Keynote Address at the 7th India International MSME Expo Summits 2021 here, the Minister said, small and micro enterprises supported by competitive and cutting edge technology will be the foundation for bigger industries in India and asked the scientific community to share the successful R&D outcomes with the industries and corporate houses. He said, all future entrepreneurship will be driven by Science and Technology and called for adding new avenues and enterprises in tune with changing times.

Dr Jitendra Singh said, it gives him immense pleasure that MSME Ministry has set a target to enhance its contribution to GDP up to 50% by 2025 as India becomes a $5 trillion economy. He said, with around 36.1 million units, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities. Moreover, it is the second largest employment generating sector after agriculture as it provides employment to around 120 million persons in India.

Dr Jitendra Singh said, MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth. He said, with low investment requirements, operational flexibility and the capacity to develop appropriate indigenous technology, Small and Medium Enterprises have the power to propel India to new heights.

Referring to the huge unexplored business opportunities in Bamboo sector, Dr Jitendra Singh said, a path-breaking decision was taken by Prime Minister Narendra Modi to exempt home grown bamboo from the purview of the 100-year-old Indian Forest Act, which helped in bringing ease of doing business in the bamboo sector for the young entrepreneurs. He also pointed out that by increasing the import duty on bamboo sticks/ Agarbatti from 10% to 25%, the domestic Agarbatti manufacturing got a huge boost as nearly 5 to 6 thousand crores of Agarbatti was imported every year from countries like Korea, Vietnam and China. But, there has been no import of raw batti since September 2019 and local bamboo produce is being used for this, he added.

Dr Jitendra Singh reiterated that many Start-Up avenues of self-employment are more lucrative than government jobs and the need is only to change the mind-set which is inclined to prefer a small-time government job with a meagre salary instead of a self-employed Start Up initiative which could comparatively beget manifold returns from the beginning itself.

The Minister said, many Agri Start-Ups through suitable use of Science and Technology are not only providing lucrative livelihood for themselves but also for their peers. Referring to the clarion call given by Prime Minister Narendra Modi for doubling the farmer’s income by 2022, Dr Jitendra Singh said that the focus of agricultural and allied sectors, and researchers should be on productivity rather than production.

Status of MSMEs and SMEs

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The COVID-19 epidemic has temporarily affected various sectors including Micro, Small and Medium Enterprises in the country. Economic activity contracted due to the strict lockdown measures imposed by the Government. This contraction has also had impact on the MSME sector.

        The Ministry of MSME implements various schemes and programmes for growth and development of MSME Sector in the country. These schemes and programmes include Prime Minister’s Employment Generation Programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Interest Subvention Scheme for Incremental Credit to MSMEs, Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises Cluster Development Programme (MSE-CDP), Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS). Achievements under some of them are:

Refer data on following link:

Status of MSMEs and SMEs

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1744033&RegID=3&LID=1

Ministry of Micro, Small & Medium Enterprises Press Release dated 09th Aug 2021

Financial assistance towards MSMEs

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Government has taken a number initiatives for providing financial assistance to the Micro, Small and Medium Enterprises (MSMEs) to cope with the financial impact of the COVID-19 pandemic which inter-alia include measures such as :

  1. Rs. 20,000 crore Subordinate Debt for MSMEs,
  2. Rs. 4.5 lakh crore Collateral free Automatic Loans under Emergency Credit Line   Guarantee Scheme (ECLGS) for businesses, including MSMEs.
  3. Rs. 50,000 crore equity infusion through MSME Fund of Funds
  4. Rs.15,000 crore Special Refinancing Facility for Small Industries Development Bank of India (SIDBI) from RBI as a specific response to COVID-19 for on lending/refinancing purposes
  5. Credit Guarantee Scheme to facilitate loans to 25 lakh persons through Micro Finance Institutions,
  6. Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFC/MFIs,
  7. Rs. 90,000 crore partial Credit Guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs.

In view of the challenges faced by taxpayers due to the outbreak of Novel Corona Virus (COVID-19), the Government of India has taken several taxation related measures for the industries including MSMEs which inter-alia include measures such as :-

  1. extension of various time limits for compliances and statutory actions under the taxation laws
  2. extension of date for filing declaration under the Direct Tax Vivad se Vishwas Act
  3. issuance of corporate tax refunds,
  4. extension of the date of incorporation of eligible start up for claiming deduction under the relevant provisions of income tax act,
  5. extending the  date for making various investment/payment for claiming deduction under Chapter VIA-B of the Income Tax
  6. Concessional rates of interest in lieu of the normal rate of interest of 18% per annum for delayed tax payments.

This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in the Rajya Sabha.

Ministry of Micro,Small & Medium Enterprises Press Release dated 28 July 2021