Due to COVID-19 effect, MSME Industries which are the backbone of the Indian economy are facing the situation of Cash Crunch. India's Government is taking measures to boost the Indian economy as soon as possible. The Indian government has approved a large amount for current MSME units as well as for new start-ups to support the MSME Market. Currently, the government's key priority is on making "Atamnirbhar Bharat" for that our noble prime minister makes announcements including no global tender up to Rs.200 Crore for all fresh government projects, etc.
MSME stands for micro small and medium enterprises that form the backbone of the Indian economy. The Government of India in the past years has introduced various schemes and packages much to the relief of these MSME sectors for their growth and development. These Government packages and Government schemes for MSME sectors were introduced so that these sectors can continue production and compete with other big corporate entities as they lack resources and technology.
As per the notification announced in initiation with Atmanirbhar scheme for facilitating ease of doing business the Ministry Of MSME has introduced the new definition of MSME and new registration process known as – ‘Udyam Registration’. The registration process has been started on 01-07-2020. Before the notification it was known as Udyog Aadhaar Registration which is used to register under MSME.The new registration process of Udyam Comes up with many new updates and is very distinctive from the old process.
What are the pillars of economic growth in a developing country like India? The Micro, Small, and Medium Enterprises (MSME) sector, rightly termed as the “engine of growth for India” is one of the major business units that play a salient role in the development of the country. The Government of India, through various subsidies, incentives, schemes, and most importantly the MSMED, Act supports and promotes the MSME sector which is a primary contributor to industrial, manufacturing, and employment units of India.
The micro, small, and medium enterprises and the groups of people who are associated with it are suffering the most during this pandemic of COVID-19. The micro, small and medium enterprises or MSMEs are the small sectors of business which can be considered responsible for the propagation of the middle scale economy of any country. There are many enterprises that are presently contributing to the economy of every country. These enterprises are responsible for carrying forward the basic economy of an entire country. The apparent contribution of this kind of business might not appear to be crucial, but the overall contribution to the country's economy by micro, small, and medium enterprises cannot under-estimated at any cost.