Development of Small Scale Industries



Quick Summary
The Indian government has introduced several support measures for Micro, Small, and Medium Enterprises (MSMEs), particularly in response to the COVID-19 pandemic. These initiatives, part of the Aatma Nirbhar Bharat Abhiyan, include substantial financial aid such as subordinate debt, collateral-free automatic loans, and equity infusion funds. Additionally, new classification criteria and an easier 'Udyam Registration' process have been implemented to foster business growth and ease of doing business.

The Government has announced various relief measures for several sectors under the Aatma Nirbhar Bharat Abhiyan and has taken a number of initiatives to support the MSME Sector in the country, especially in Covid-19 pandemic situation. Some of them are:

  • Rs 20,000 crore Subordinate Debt for Micro Small & Medium Enterprises(MSMEs).
  • Rs. 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
  • Rs. 50,000 crore equity infusion through MSME Fund of Funds.
  • New revised criteria for classification of MSMEs. Retail and wholesale trades are also included under MSMEs.
  • New Registration of MSMEs through 'Udyam Registration' for Ease of Doing Business.
  • No global tenders for procurement up to Rs. 200 crores.

The Ministry of MSME implements various schemes and programmes for growth and development of MSME Sector in the country, including in the State of Haryana. These schemes and programmes include Prime Minister’s Employment Generation programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Interest Subvention Scheme for Incremental Credit to MSMEs, Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises Cluster Development Programme (MSE-CDP), Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).

Small Business Support: Govt Relief for MSMEs

Studies have been conducted by National Small Industries Corporation and Khadi and Village Industries Commission to assess the impact of COVID-19 Pandemic on MSMEs, including units set up under PMEGP.

A Help-Desk & Facilitation Centre has been set up in Directorate General of Trade Remedies, which deals with the trade remedial measures, including anti-dumping measures. This Help Desk & Facilitation Centre is an institutional arrangement to facilitate optimal utilization of available trade remedial measures by different stakeholders.

Its functions inter-alia include:-

  • Disseminate information to Domestic Industry (DI) regarding various Trade Remedies.
  • Hand-hold DI, especially MSMEs, in filing trade remedial petitions.
  • Guide MSMEs to remove 'data gaps' while filing applications.
  • Guide the Indian exporters facing Trade Remedial Investigations in other countries.
  • Provide information regarding available Non-Tariff Measures to Domestic Industry and    advise them to avail the same with the support of concerned Administrative Ministry/ Department.
  • Provide information regarding estimated time lines for completion of various procedures and for disposal of cases.

This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in Lok Sabha today.

FAQ :

MSMEs can benefit from Rs 20,000 crore in subordinate debt, Rs 3 lakh crore in collateral-free automatic loans, and Rs 50,000 crore in equity infusion through the MSME Fund of Funds.

Yes, new revised criteria for the classification of MSMEs have been introduced.

Yes, retail and wholesale trades are now included under the MSME classification.

'Udyam Registration' is a new process for MSME registration aimed at improving the ease of doing business.

Yes, there are no global tenders for procurement up to Rs 200 crores.

This centre disseminates information on trade remedies, assists MSMEs in filing petitions, guides them on data gaps, and supports Indian exporters facing investigations abroad.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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