MSMEs in India have
great significance as they will be the drivers of ‘Make in India’, Start Up
India, and Digital India strategies unfolded by the Union Government. They are
governed by the provisions of MSME Development Act 2006, with the principal
objective of promoting, developing and enhancing the competitiveness of the
MSMEs.
Two years since the NDA
government came to power MSME sector seems to be in a confused state with
unresponding credit markets, slow moving equity, and adverse global positioning
in spite of large potential for job growth.
MSMEs are redefined in
September 2015 by way of amendment to rules to the 2006 MSMSE Act providing for
vertical growth. Earlier definitions of SSI and MSMEs post 2006 accommodated
horizontal growth and perverse incentives. But all the states have not fallen
into grove.
New regulations and
rules seem to be compounding the problems for the sector when it comes to
revival and rehabilitation even as the Bankruptcy Law provides the long awaited
relief for the large industry.
