MSMEs Issues, Performance and Impacts in Jhar...

MSMEs Issues, Performance and Impacts in Jharkhand: A Critical Evaluation

Author Name : Kunwar Jee Sinha, Shweta Sinha, Brajesh Jee Sinha

ABSTRACT

MSMEs stands for  Micro, Small and Medium Enterprises. In reality, MSMEs have a significant impact on issues of an economy of a country. 

In exercise of the powers conferred by sub-section (1) read with sub-section (9) of section 7 of the ‘Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) and in supersession of the notification of the Government of India, Ministry of Small Scale Industries, dated the 29th September, 2006, published in the Gazette of India, Extraordinary, Part II, Section3, Sub-section(ii), vide S.O. 1642(E), dated the 30th September 2006 except as respects things done or omitted to be done before such supersession, the Central Government, hereby notifies the following criteria for classification of micro, small and medium enterprises, namely:— (i) a micro enterprise, where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees; (ii) a small enterprise, where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; (iii) a medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees. This notification shall come into effect from 01.07.2020.

Micro, Small and Medium Enterprises is known as MSMEs. Even though it seems small, MSMEs, in reality, have a significant impact on an economy of a country. We can meet the activist of MSMEs in the morning tonight. Micro, Small and Medium Enterprises have a substantial role in the industrial and economic sectors. Even though MSMEs are small, they have been proven to drive the country's economic progress. MSMEs are driving the country's economic revival after several crises. Small scale industries play a pivotal role in India's economic and social development in the post-independence period. The Small scale industries constitute the backbone of a developing economy with their practical, efficient, flexible and innovative entrepreneurial spirit. Around the world, SSI units have been accepted as originators of economic growth and promote equitable development. The contribution of SSIs to the Indian economy in terms of employment generation, reducing regional imbalances, promoting inter-sectoral linkages, magnifying exports and fostering fair economic growth potential has been quite marvellous. Enterprises' manufacturing and services categories have been classified into Micro, Small and Medium Enterprises (MSMEs). These are based on their investments. The investment in plant and machinery is in manufacturing, and equipment is used in service enterprises.

Micro, Small and Medium Enterprises is known as MSMEs. Even though it seems small, MSMEs, in reality, have a significant impact on an economy of a country. We can meet the activist of MSMEs in the morning tonight. Micro, Small and Medium Enterprises have a substantial role in the industrial and economic sectors. Even though MSMEs are small, they have been proven to drive the country's economic progress. MSMEs are driving the country's economic revival after several crises. Small scale industries play an essential role in India's economic and social development in the post-independence period. The Small scale industries establish the backbone of the economy of the developing countries, with their efficient, flexible, practical, and innovative entrepreneurial spirit. The contribution of SSIs has a significant contribution to the Indian economy, especially in terms of employment generation, reducing regional imbalances, magnifying exports, promoting inter-sectoral linkages and fostering fair potential economic growth. The manufacturing and services of the MSMEs categories have been classified into Micro, Small and Medium Enterprises (MSMEs). These are based on their investments. The investment in plant and machinery is in manufacturing, and equipment is used in service enterprises.

Keywords: MSMEs, SSI, Economic Growth, Social and Economic Development