Year End Review- 2024: Ministry of Micro, Small and Medium enterprises (MSME)

Introduction

Overview

• MSME sector comprises over 6.30 crore enterprises
• Second largest employment generator after agriculture
• Key role in fostering entrepreneurship
• Provides employment at comparatively lower capital cost

Key Focus Areas

1. Credit support
2. Technological assistance
3. Infrastructure development
4. Skill development and training
5. Enhancing competitiveness
6. Market assistance

Major Initiatives and Achievements 2024

1. PM Vishwakarma Scheme

Launch Details:

• Launched by Prime Minister on 17.09.2023
• Aim: End-to-end support for artisans and craftspeople
• Coverage: 18 traditional trades

Key Achievements (Jan-Dec 2024):

1. Registrations:
   • 24.77 lakh applications registered
   • 15.05 lakh completed basic skill training
   • 6.58 lakh digitally enabled
2. Financial Support:
   • Rs. 2197.72 crore sanctioned
   • 2.54 lakh beneficiaries
   • Collateral-free loans at concessional rates
3. Marketing Initiatives:
   • 75 trade fairs and exhibitions organized
   • National event held at Wardha, Maharashtra (20.09.2024)
   • Live broadcast across 550 locations

2. MSME Formalization

Achievements:

• Total registered MSMEs: 5.70 crore
• Employment generated: 24.14 crore
• Registration platforms:
  • Udyam Registration Portal
  • Udyam Assist Platform (UAP)

3. Credit Guarantee Scheme

Key Features:

1. Enhancements in 2023:
   • Guarantee coverage increased from Rs. 2 crore to Rs. 5 crore
   • Reduced annual guarantee fees
   • Increased threshold for legal action waiver
2. Performance (Jan-Dec 2024):
   • 19.90 lakh guarantees approved
   • Total amount: Rs. 2.44 lakh crore
3. Special Initiatives:
   • Special Scheme for Micro Enterprises (Feb 2024)
   • Enhanced coverage for women entrepreneurs (90% vs 75%)
   • Loans up to Rs. 20 lakh without primary security

4. MSME-TEAM Scheme

Launch Details:

• Launched: 27.06.2024
• Outlay: Rs. 277.35 crore

Objectives:

1. Digital trade promotion
2. E-commerce integration
3. Digital empowerment of 5 lakh MSEs
   • Including 2.5 lakh women-owned MSEs

5. Yashasvini Campaign

• Launch Date: 27.06.2024
• Focus: Gender parity by 2029
• Collaboration:
  • Women Entrepreneurship Platform
  • NITI AAYOG
  • Ministry of Rural Development

6. MSME Hackathon 4.0

Details:

• Launch: 11.09.2024
• Support: Rs. 15 lakh each for 500 entrepreneurs
• Status: 25,000+ ideas received

Infrastructure & Capacity Building

1. MSE-CDP (Cluster Development Programme)

Progress:

• Total approved projects: 609
• Completed projects: 353
• 2024 Achievements:
  • 29 new projects approved
  • Total cost: Rs. 601 crore
  • Government assistance: Rs. 392 crore

2. SFURTI Scheme

Status:

• Total clusters approved: 513
• Functional clusters: 376
• 2024 Achievements:
  • 18 new functional clusters
  • Beneficiaries: 11,810 artisans
  • Coverage: 11 states

Public Procurement Policy

Achievements:

1. Procurement from MSEs (2024-25):
   • Amount: Rs. 37,190.02 crore
   • Percentage: 38.39% (against 25% target)
   • Beneficiaries: 1,15,481 MSEs
2. Reserved Items:
   • 358 items exclusively for MSE procurement
   • Special provisions:
     • 4% from SC/ST owned MSEs
     • 3% from women entrepreneurs

Technology Centers

Existing Infrastructure:

• 18 Tool Rooms & Technical Institutions
• Performance (Jan-Nov 2024):
  • 44,223 units assisted
  • Indigenous component development
  • Import substitution initiatives

Expansion:

• 20 new Technology Centres
• 100 Extension Centres planned
• 25 Extension Centres operational
• Training achievement: 72,414 trainees

International Cooperation

Key Developments:

1. India-Japan Cooperation:
   • Fourth JWG meeting (22.05.2024)
   • Focus: 5S and Kaizen programs
2. US Collaboration:
   • EXIM Bank meeting (12.09.2024)
   • Focus: Export-oriented collaboration
3. India-Taiwan Cooperation:
   • Third Joint Working Group Meeting
   • MoU signed with ITRI (02.10.2024)

MSME Support Programs

1. Skill Development:

• 2,792 programmes conducted
• 1,40,738 persons benefited
• 12,475 trainees approved for 2024-25

2. SC/ST Hub:

• Beneficiaries: 9,295 entrepreneurs
• SVDPs organized: 67
• Procurement increase: Rs. 99.37 crore to Rs. 1,722 crore

3. NER and Sikkim Scheme:

• 12 new projects approved
• Total cost: Rs. 174.24 crore
• Government grant: Rs. 142.05 crore

Important Facts for Prelims

1. MSME sector statistics:
   • Enterprises: 6.30+ crore
   • Employment: 24.14 crore
2. Financial achievements:
   • Credit guarantee approvals: 19.90 lakh
   • Total amount: Rs. 2.44 lakh crore
3. Key schemes launched:
   • PM Vishwakarma
   • MSME-TEAM
   • Yashasvini Campaign
   • MSME Hackathon 4.0
4. Infrastructure development:
   • 609 cluster projects
   • 18 Technology Centers
   • 25 operational Extension Centres
5. International cooperation:
   • MoUs with Japan, US, Taiwan
   • Focus on technology transfer and export promotion