Small Industry Day: Why it is observed, history, and how it differs from MSME Day; All you need to know

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August 30, 2021 6:00 AM

Ease of Doing Business for MSMEs: The sector employs 11.10 crore people as per the 73rd Round of NSS Report on unincorporated non-agricultural enterprises during the period July 2015 to June 2016.

Under the scheme, eligible investors in air-conditioners, LED lights and such components will get incentives of 4-6% on incremental sales (to be calculated over the base year of 2019-20) of products manufactured in India. The total incentives of Rs 6,238 crore will be disbursed over five years.On May 9, 2007, the erstwhile Ministry of Small-Scale Industries and the Ministry of Agro and Rural Industries were merged to form the Ministry of MSME. (Image for representation)

Ease of Doing Business for MSMEs: India observes National Small Industry Day on August 30, every year to commemorate the contribution of small-scale industry to the country’s growth. The day is marked to promote and support enterprises in the small scale industry for growth and setting up new businesses to generate employment opportunities. The government of India had reportedly introduced an extensive policy package for the small-scale industry on August 30, 2000, to support small businesses in the country and since then National Small Industry Day is observed every year dedicated to small enterprises. Small Scale Industry (SSI) registration is used interchangeably with micro, small, and medium enterprise (MSME) registration while the MSME Development Act 2006 provides for facilitating the promotion, development, and enhancing the competitiveness of MSMEs or SSIs.

On the other hand, the UN General Assembly has declared June 27 as the MSME Day to enhance public awareness of MSMEs’ contribution to sustainable development and the global economy. The day is celebrated since 2017 following a resolution passed in the Assembly during the year. According to a UN blog, formal and informal MSMEs make up over 90 per cent of all firms and account, on average, for 70 per cent of total employment and 50 per cent of GDP worldwide.

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On May 9, 2007, the erstwhile Ministry of Small-Scale Industries and the Ministry of Agro and Rural Industries were merged to form the Ministry of MSME. According to the information shared by MSME Minister Narayan Rane in Rajya Sabha earlier this month citing data from Central Statistics Office, Ministry of Statistics & PI, MSMEs’ share in India’s GDP stood at 30 per cent in FY20. This was down from 30.5 per cent in FY19. Moreover, MSME manufacturing share in manufacturing gross value output in FY20 was 36.9 per cent while share in exports stood at 49.8 per cent.

The sector employs 11.10 crore people as per the 73rd Round of NSS Report on unincorporated non-agricultural enterprises during the period July 2015 to June 2016. Under the Prime Minister’s Employment Generation Programme (PMEGP), the estimated employment generated in micro enterprises during FY21 was 5.95 lakh. Former MSME Minister Nitin Gadkari, at a CII event in December last year, had envisioned 40 per cent GDP contribution from MSMEs in five years along with up to 60 per cent share in exports and additional 5 crore jobs.

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