Micro, Small, and Medium-sized Enterprises (MSME) Day 2022

To highlight the enormous contributions made by MSMEs to the accomplishment of the Sustainable Development Goals of the United Nations, the United Nations General Assembly declared June 27 as “Micro-, Small-, and Medium-sized Enterprises Day” (A/RES/71/279) (SDGs). 90 percent of enterprises, 60 to 70 percent of jobs, and 50 percent of global GDP are MSMEs. As the foundation of all societies, they support livelihoods and local and national economies, particularly for the working poor, women, young people, and vulnerable groups.

Key Abstract

This year marks the 5th anniversary of MSME Day, and small companies are more than ever in need of assistance as they deal with the effects of the COVID epidemic, wars, and the climate catastrophe. They are the hardest damaged by these numerous shocks, but they also play an important role in rebuilding. MSMEs must become more robust to future shocks, and initiatives and stimulus packages must prioritise those most impacted by interruptions in global supply chains, increasing prices, and the ongoing effects of the COVID-19 epidemic.

Millions of lives were lost, hundreds of companies were destroyed, and livelihoods were lost, marking an intense, devastating chapter in our existence. The theme of the 2020 MSME Day coverage was “Rebooting India’s Small Businesses,” as we wanted to assist MSMEs in regaining their footing after a time of protracted lockdown.

In 2021, with the globe attempting to break free and vaccines presenting a glimpse of hope, Indian exports and millions of small exporters reaped the benefits. For MSME Day 2021, we focused on how India can make a difference in the globe. India’s total exports (merchandise and services) reached an all-time high of $669.65 billion in April-March 2021-22, up 34.50 percent from the previous year.

Before we shall move upon to discuss about MSME Day, Let’s talk about the basic concept of MSME, its importance and purpose.

Historical Background of MSME’s

On April 6, 2017, the 74th United Nations General Assembly passed a resolution declaring June 27 as Micro, Small, and Medium-sized Enterprises (MSME) Day. The resolution was founded on the notion that MSMEs are critical to furthering the SDGs, particularly in terms of supporting innovation, creativity, and decent work for all. MSME Day is expected to shine a light on MSMEs and their contributions to the global economy.

Meaning of Micro-, Small-, and Medium-sized Enterprises (MSME)

MSMEs in India generate almost 8% of the country’s GDP, around 45 percent of manufacturing output, and approximately 40% of exports. It would not be incorrect to call them the “backbone of the country.”

In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006, the Government of India established MSME or Micro, Small, and Medium Enterprises. These businesses are typically involved in the production, manufacture, processing, or storage of products and commodities.

MSMEs are a major segment of the Indian economy and have made significant contributions to the country’s socioeconomic growth. It not only creates job possibilities, but it also contributes to the development of the country’s backward and rural areas. According to the Government’s annual report (2018-19), India has around 6, 08, 41,245 MSMEs.

MSMEs’ Purpose

MSMEs have proven to be the backbone of the new India and its development engine throughout this period of economic success. MSMEs have progressively helped to revitalise the artisan class by providing work to craftspeople in rural regions of the country and, in turn, access to loans and other services. They have spurred the nation’s overall modernisation and continue to encourage the expansion of the nation’s infrastructure and technology.

The Indian government proposed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018, to categorise MSMEs as either manufacturing or service-providing enterprises. This bill would abolish the obligation for routine inspections to certify the necessary investments in plant and machinery. Furthermore, MSMEs’ activities would be allowed to continue in a transparent, impartial, and non-discriminatory way.

Characteristics of MSMEs

The following are some of the most important aspects of MSMEs:

• MSMEs work to improve the lives of workers and artisans. They aid them by supplying work and by providing loans and other services.
• MSMEs give credit limit or financial help to banks.
• They encourage the growth of business as well as skill development by establishing specialised training facilities.
• They advocate for the advancement of innovative technologies, the development of infrastructure, and the overall modernisation of the industry.
• MSMEs are well-known for providing fair support to increase access to both local and export markets.
• They also provide cutting-edge testing facilities and high-quality certification services.
• MSMEs now assist product development, design innovation, intervention, and packaging, in line with contemporary developments.

MSMEs’ Role in the Indian Economy

Since its inception, the MSME sector has shown to be a very active sector of the Indian economy. MSMEs create and manufacture a wide range of goods for both domestic and international markets. They have aided in the expansion and development of the khadi, village, and coir industries. They have coordinated and worked with relevant ministries, state governments, and stakeholders to improve rural regions.

MSMEs have played a critical role in creating job prospects in rural regions. They have aided in the development of these places at a lower capital cost than huge businesses. The MSME sector has made significant contributions to the country’s socioeconomic growth by serving as a complement to larger industries.

MSMEs also contribute to and play an important part in the country’s growth in a variety of ways, including the need for minimal investment, flexibility in operations, mobility among sites, a low rate of imports, and a large contribution to local output.

With the ability and capacity to develop appropriate local technology, provide fierce competition in domestic and international markets, technology-savvy industries, contribute to the development of defence materials, and generate new entrepreneurs through the provision of knowledge, training, and skill up-gradation through specialised training centres.

MSMEs’ Importance in the Indian Economy

MSMEs are widely recognised across the world as a source of economic growth and a way of fostering equitable development. They are recognised to create the highest rate of economic growth. MSMEs have propelled India to new heights by requiring cheap investment, flexible operations, and the ability to generate relevant indigenous technologies.

• MSMEs employ around 120 million people, making them the second-largest employer after agriculture.
• It provides around 6.11 percent of GDP from manufacturing and 24.63 percent of GDP from service activities, with approximately 45 lac units spread over the country.
• As India strives to become a $5 trillion economy, the MSME ministry hopes to raise its contribution to GDP by up to 50% by 2025.
• Contributing around 45 percent of total Indian exports
• MSMEs encourage inclusive growth by creating job possibilities, particularly for persons from the poorer parts of society in rural regions.
• MSMEs in tier 2 and tier 3 cities contribute to the creation of chances for individuals to use banking services and products, which can result in the eventual inclusion of MSMEs’ contribution to the economy.
• MSMEs foster innovation by allowing aspiring entrepreneurs to produce innovative goods, hence increasing company rivalry and fuelling growth.

27th June – MSME Day

On April 6, 2017, the 74th session of the United Nations General Assembly adopted a resolution designating June 27 as Micro, Small, and Medium-sized Enterprises (MSME) Day. The resolution’s premise was that MSMEs play a critical role in achieving the Sustainable Development Goals, particularly in supporting innovation, creativity, and decent work for all. MSMEs and their contributions to the global economy are likely to be highlighted on MSME Day.

Significance of Micro, Small, and Medium-Sized Enterprises Day

MSMEs have long faced challenges, from obtaining financing to running their enterprises. However, the supply chain difficulties are recent. These have an influence on every aspect of our existence. The supply chain ensures that all things, from toothpaste to food, reach us efficiently and economically. The supply chain is critical to company operations, including raw material procurement, sales, and demand forecasting. If a company’s supply chain fails, its entire existence is jeopardised. India is seeking to capitalise on potential economic possibilities, but supply chain issues have hampered short-term growth and cast doubt on long-term prospects. Every industry and sector must be willing to reinvent itself.

MSME Day 2022 will focus on these essential concerns in order to avoid disruptions from delaying efforts to achieve sustainable and inclusive growth. The topic of MSME Day 2022 is “Building a Better World,” and the programming for the day demonstrates how businesses and organisations can achieve just that. MSME Day 2022, which will feature prominent government authorities, business executives, and professionals, will debate the new normal on June 27.

Theme of Micro, Small, and Medium-Sized Enterprises Day

The United Nations has not yet announced the theme for Micro, Small, and Medium-sized Enterprises Day in 2022. The subject for this year was ‘MSME 2021: vital to an inclusive and sustainable recovery.’

This year’s MSME Day theme is a little different. The globe is in turmoil once more, but this time it is due to seismic upheavals in economic conditions rather than a pandemic. The Russia-Ukraine conflict, supply chain interruptions, inflation, skyrocketing commodity prices, and food shortages all threaten to destroy the world’s fragile recovery. According to one International Rice Research Institute assessment, there would be 36 million less tonnes of rice – enough to feed 500 million people.

MSMEs have long faced challenges, ranging from loan availability to ease of doing business. However, the supply chain issues are relatively recent. These have an influence on every element of our existence. The supply chain guarantees that all things reach us effectively and inexpensively, from our toothpaste to the food we consume. Everything from raw material procurement to sales and demand forecasting is dependent on the supply chain for enterprises. When a company’s supply chain fails, its basic foundation is jeopardised.

MSME Day 2022 will dig into these critical factors to ensure that disruptions do not derail the goal for sustainable and equitable growth. MSME Day 2022 material demonstrates how businesses and organisations may become more resilient and contribute to a better society. On June 27, MSME Day 2022 will bring together key government officials, industry executives, and experts to discuss the way to the new normal.

Significance of MSME Day with respect to India

India is moving to exploit economic possibilities, but supply chain problems have hampered near-term growth and cast doubt on long-term expectations. Every industry and sector must be prepared to reinvent themselves. We are focusing on the need to “Strengthen India’s supply chain to power self-reliant MSMEs” on MSME Day 2022. Policy, technology, leadership, and skills, as well as the entire ecosystem, must build new capabilities, complement current ones, and prepare for a new future. A $1 trillion economy cannot be realised with ageing infrastructure, suboptimal operations, and a disregard for people and society.

MSME Day 2022 will dive into these critical factors to ensure that disruptions do not derail the goal for sustainable and equitable growth. MSME Day 2022 material demonstrates how businesses and organisations may become more resilient and contribute to a better society. On June 27, MSME Day 2022 will bring together key government officials, industry executives, and experts to discuss the way to the new normal.

Registration of MSME

Micro, Small, and Medium Enterprises (MSME) are divided into two groups under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006.

• Manufacturing Enterprises: Manufacturing Enterprises are those businesses that make or produce items. The Manufacturing Enterprise is characterised by the amount of money invested in plant and machinery.
• Service Enterprises: These are businesses that provide or offer services and are identified by their investment in equipment.

Legal Window will offer you with all of the essential services under one roof, including registration and guidance for additional compliances. For MSME registration, please contact our team at legalwindow.in

Document Required for Registration of MSME

You will be required following documents for Registration of MSME:

• Adhaar Card
• PAN Card of Entity
• GSTN, if any
• Cancelled Cheque

Registration Process of MSME

The following is the process for the registration of MSME:

• Step 1: Complete the brief questionnaire supplied by our staff.

• Step 2: Attach all of the above-mentioned papers to the questionnaire.

• Step 3:We will proceed to register your entity with Udyam.

• Step 4: Once your company has been registered under the MSME Act, 2006, we will send you the registration certificate via email.

Endnote

The Indian MSME sector contributes invisibly to the national economy and serves as a buffer against global economic shocks and adversities. As a result, we may argue that India is driving itself toward a strong global economy via a quiet revolution fuelled by MSMEs.