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Annual Report 2020-21Annual Report

2020-21

Government of India

Ministry of Micro, Small and Medium Enterprises

Udyog Bhavan, New Delhi - 110011

website: www. msme.gov.in iii

Annual Report 2020-21

CONTENTS

CHAPTER TITLEPAGE

1.Introduction1-21

1.1.

Background1

1.2.

Mandate of the Ministry of MSME2

1.3.

Organisational structure3

1.4.

Recent Developments 6

2.Overview and Performance of the MSME sector22-35

2.1

Role of MSMEs in Indian Economy.22

rd

Round Survey (2015-16) on Micro, Small

and Medium Enterprises23 rd Round 29
31

3.ǡϐ

Micro, Small and Medium Enterprises 36-99

ȋȌ36

ȋȌ58

ȋȌ86

3.5. Mahatma Gandhi Institute for Rural Industrialisation (MGIRI)91 iv

Annual Report 2020-21

ȋǦȌ96

4.ϐ100-119

5.Targeted activities for the North-Eastern Region, Women, Disabled

Persons, and International Cooperation120-137

ȋȌ120

131

5.3 Welfare ȋȌ135

ȋȌ136

6General Statutory Obligations 138-143

ϐȋȌ138

141

ǯ142

6.4

Right to Information (RTI)143

6.5

Prevention of Sexual Harassment 143

Annex144-156

2.145-146

4.ϐBodies149

5.ǦǦǦ150-153

6.154-156

Chapter-I

Introduction

1.1

Background

1.1.1 ǡȋȌ

to agriculture. MSMEs are complementary to large industries as ancillary units and this

1.1.2 Ministry of Micro, Small & Medium Enterprises (M/o MSME) envisions a progressive MSME

other Stakeholders, through providing support to existing enterprises, adopting cutting

Ministry are provided in Paragraph 1.4.

1.1.3 Ǧ

1.1.4 ϐǡassistance and upgradation, infrastructure development, skill development and training,

enhancing competitiveness and market assistance of MSMEs. A detailed list of schemes is 1

Annual Report 2020-21

2

Annual Report 2020-21

1.1.6ϐDzdz

1.2 Mandate of the Ministry of MSME

1.2.1 ͻʹͲͲ͹ǡ

(M/o MSME). The Ministry designs policies, promotes/ facilitates programmes/ projects/ them to scale up.

1.2.2 ǡȋȌϐʹͲͲ͸

to address different issues affecting MSMEs, inter alia, the coverage and investment ceiling of the sector. The MSMED Act seeks to facilitate the development of these enterprises as also promotion and development and enhancing their competitiveness.

Small and Medium.

and instructions to develop and enhance the competitiveness of MSMEs. (i) ǡ crore rupees. 3

Annual Report 2020-21

1.2.3.2. ǡϐ

and services. organisations is to assist the States in their efforts to encourage entrepreneurship, employment and livelihood opportunities and enhance the competitiveness of MSMEs in the changed economic scenario. 1.3

Organisational structure

1.3.1

The Ministry of MSME consists of Small & Medium Enterprises (SME) Division, Agro &Rural Industry (ARI) Division, Administration & Financial Institutions (AFI), Integrated Finance

4

Annual Report 2020-21

1.3.2 SME Division- The SME Division looks after overall inter-alia administrative supervision

of schemes and its implementation through advertisement in electronics, Print Media and

Social Media.

1.3.3 ARI DivisionǦǦ

Gandhi Institute for Rural Industrialisation (MGIRI). It also supervises the implementation for Regeneration of Traditional Industries (SFURTI) and A Scheme for Promoting Innovation,

Rural Industry and Entrepreneurship(ASPIRE).

1.3.4 AFI Division - ǡǡǡ

Cabinet Minister

Minister of State

AS&FA

EA(IFW)

Integrated

Finance WingDDG (DBT/

ARI Division

3. MGIRI

1. DBT

2. Digital Payment

O/o & MSME-DIsȋȌ

SME Division

AFI

Division

1.

General

Administration

2. Desk 3.

E Samiksha

4.

PRAGATI

Scheme

Secretary (MSME)

5

Annual Report 2020-21

1.3.5 IF Wing - IFW examines the various proposals received from the Programme Divisions ȀȋȌǣȋȌǢȋȌ Ȁ

1.3.6 DATC & DBT Wing-Ȁ

activities.

1.3.7 ϐ

1.3.7.1 Ȁ

Advising the Government in Policy formulation for the promotion and development of

MSMEs.

Providing techno-economic and managerial consultancy, common facilities and extension services to MSME units.

and infrastructure. Developing Human Resources through training and skill upgradation.

Providing economic information services

1.3.8 The National Board for Micro, Small and Medium Enterprises (NBMSME)

Development Act, 2006 and Rules made there under. It examines the factors affecting makes recommendations to the Government in formulating the policies and programmes 6

Annual Report 2020-21

1.4

Recent Developments

1.4.2 Framework for Revival and Rehabilitation of MSMEs

In order to provide a simpler and faster mechanism to address the stress in the accounts of MSMEs and to facilitate the promotion and development of MSMEs, the Ministry of

1.4.3

MSME DataBank

Annual Report 2020-21

1.4.4

MyMSME

1.4.5 in the Ministry. / expenditure incurred. Sl.

No.Name of the SchemeϐTotal no. of

(2020-21) (upto 31.12.20)Total Expendi- ture (Rs. crores) (2020-21) (upto 31.12.20)

1ȋȌͳʹ͹ͻ0.86

2ʹͲͲͺʹ͹54.52

3890.035

4SFURTI SI͹ͷʹ͵0.00

5Prime Ministers Employment Generation

6450.45

8ǦȋȌ681.25

8

Annual Report 2020-21

6

Zero Effect Zero Defect (ZED)

1.4.6 Digital Payments

each and every segment of our country under the formal fold of digital payment services.

1.4.6.2 As a partner in the initiative, Ministry of MSME has taken numerous initiatives to digitally

ǡϐǡQR code.

Ministry of MSME got

Open Data Champion Award (2020 )

platforms for all sectors of MSMEs. 9

Annual Report 2020-21

Secretary, MSME at the Virtual Awards ceremony, 30.12.2020. Sl. No. organisation

TotalBy Digital MeansPercentages

No. of

TransacǦ

tionsValue in

ȌNo. of

TransacǦ

tionsValue in

ȌNo. of DigiǦ

tal TransǦ

άȌValue of

Digital

TransacǦ

(Tool Room+DI

ͻNIMSME18339.5216586.5690.4568.91

10

Annual Report 2020-21

14.7 Grievance Monitoring

the Ministry.

1.4.8 MSME SAMADHAAN: To Address Delayed Payment to MSEs

Section 15-24 of the micro, Small and Medium Enterprises Development (MSMED) Act, ʹͲͲ͸ constituted under the Act in all State/UTs. Under Section 16 of the MSMED Act, delayed and regulations on delayed payment to Micro & Small Enterprises.

65142 applications related to delayed payments. These applications involve an amount of Rs.

18466.49 crore. This portal has also helped in getting the delayed payments settled mutually

11

Annual Report 2020-21

1.4.9

MSME-SAMBANDH

in/PPP_Index.aspx

1.4.10

MSME SAMPARK

12

Annual Report 2020-21

1.4.11. Champions Portal

Hon"ble PM launching Champions Portal for MSMEs on

01 June 2020.

1.4.11.1 Introduction

1.4.11.2 Structure of Champion Desk

development etc.

1.4.11.3 Key Highlights of the Platform

the platform. 13

Annual Report 2020-21

Starters/ MSMEs.

Provision to capture ideas and suggestions received from MSMEs

1.4.11.4 Status of Grievances (As on 31

st

December 2020)

1.4.12.

SPECIAL MEASURE UNDER ATMANIRBHAR BHARAT ABHIYAAN

priority in implementation of the measures to revive the economy. To provide immediate Ministry of MSME is focusing on all aspects, in addition to the existing credit related Rs 20,000 crores Subordinate Debt for Stressed MSMEs: 14

Annual Report 2020-21

provide an opportunity for MSMEs to get listed in stock exchanges. Ministry of MSME has approved and issued the Guidelines on Self-reliant India (SRI) Fund scheme. stage of implementation.

1.4.13

Skill Training Eco-system of Ministry of MSME

1.4.13.1 Ministry of Micro, Small & Medium Enterprises (MSME) in its endeavor to provide the right

different segments of enterprises.

Ecosystem and its present challenges in India.

15

Annual Report 2020-21

sector are also provided to strengthen these sectors trainings of the Ministry are reported to Ministry of Skill Development & Entrepreneurship (MSDE) under Skill India Mission convergence.

1.4.13.2 Progress of Skill Development Programmes

employment and self-employment. They also provide skill up-gradation trainings to 16

Annual Report 2020-21

2020-2021

1.4.13.3 Challenges and Way Forward

at megacities.

1.4.14

SWACHHTA PAKHWADA by Ministry of MSME

1.4.14.1ͳ͸

th to 30 th

1.4.14.2

1.4.15

Hon"ble Prime Minister made 12 key announcements in the support and outreach programme for MSMEs on 2 nd

Annual Report 2020-21

S. No.AnnouncementSummary Updated Status as on 31.12.2020

1 ͷͻǦ

MSMEs. In-principle approval of

loans up to Rs. 1 crore through the portal. Portal link through GST portal.ԙʹǡʹͲǡͷͳͺ ǡ

2.ȋȌ ʹΨ

all GST registered MSMEs, on incremental credit.SIDBI has received and settled the claims of receive loans in the pre-shipment the same scope and coverage. DGFT has issued Trade notice no. 11 dt. 14.05.2020 giving detailed position in this regard. e-Discounting System (TReDS)

1461 companies have registered themselves on

TReDS platform

4. procurement. 18

Annual Report 2020-21

S. No.AnnouncementSummary Updated Status as on 31.12.2020 5. mandatory procurement.ԙʹͲʹͲǦʹͳǡ total procurement. 6. to get their vendors registered on

GeM portalԙʹ͹͹ȀȀ

on GeM portal post 02.11.2018. registered on GeM portal. MSEs of Tool Rooms for Technological allotment of Rs. 6000 crore.ԙ approved year 2019-20.

1593 trainees.

process. 8.

Govt. of India assistanceԙǦ

from Pune on 31.01.2019 and proposals from

9.ϐ

regulations to simplify Government 19

Annual Report 2020-21

S. No.AnnouncementSummary Updated Status as on 31.12.2020 10. simplify Government procedures.ԙ through ShramSuvidha Portal. period from 01 Apr 2019 to 31 March 2020

11. ǡǡ

12. the minor violations under the procedures rather than to approach procedures(imposition of penalty) rather than to

Organizations:

1.4.16.1 Encouraging the production of covid-19 related Medical and Auxiliary Items by

Technology Centers(TCs):

ȋȌϐǦͳͻϐϐǡǡaccurate IR thermometer, non-contact dispensers, etc. and are manufacturing indigenous

20

Annual Report 2020-21

1.4.16.2 Important COVID related Actions taken by the MSME Development Institutes (MSME-

DIs) of the Ministry of MSME:

materials for manufacturing of masks, PPE kits etc. support to overcome those challenges. grievance redressal. through digital means/social media campaigns, during the pandemic. 21

Annual Report 2020-21

v.

Demand-Supply chain management.

1.4.17 Emergency Credit Line Guarantee Scheme (ECLGS):

rd

August, 2020.

1.4.18 Government e-Market Place:

Ministry of MSME is already making every attempt to encourage the MSMEs to get themselves Number of MSE sellers & Service ProvidersOrders value (MSE %) 22

Annual Report 2020-21

Overview and Performance of the

MSME Sector

2.1

Role of MSMEs in Indian Economy

2.1.1 Statement 2.1 Share of Gross Value Added (GVA) of MSME in all India GDP Figures in Rs. Crores adjusted for FISIM at current prices

YearTotal

MSME GVA Growth

(%)Total GVAShare of

MSME in GVA

(%)All India

GDPShare of MSME

in All India GDP (in %) during the period from 2014-15 to 2018-19 ____________ 1.

Chapter-2

23

Annual Report 2020-21

2.2 Key Results of NSS 73

rd

Round Survey (2015-16) on Micro, Small and Medium

Enterprises

2.2.1

Estimated number of MSMEs in country:

2.2.1.1

rd agriculture MSMEs in the country engaged in different economic activities (196.65 lakh in 1 , 230.35 lakh in Trade and 206.85 lakh in Other Services) excluding those MSMEs registered under Statement No. 2.1: Estimated Number of MSMEs (Activity Wise) Activity CategoryEstimated Number of Enterprises (in lakh)Share (%)

RuralUrbanTotal

(1)(2)(3)(4)(5)

Manufacturing114.1482.50196.6531

Electricity*0.030.010.030

Other Services102.00104.85206.8533

All324.88309.00633.88100

*Non-captive electricity generation and transmission Figure 2.1 Distributions of Estimated MSMEs (Nature of Activity Wise) *Non-captive electricity generation and transmission 24

Annual Report 2020-21

2.2.1.2

Statement No. 2.2: Distribution of Enterprises ( Rural and Urban area wise) (Numbers in lakh)

SectorMicroSmallMediumTotalShare (%)

(1)(2)(3)(4)(5)(6) Urban 306.432.530.04309.0049

All630.523.310.05633.88100

Figure 2.2: Percentage share of rural and urban MSMEs in the country 2.2.2

Type of Ownership of Enterprises

25

Annual Report 2020-21

Statement No. 2.3: Percentage Distribution of Enterprises in rural and urban areas.

SectorMaleFemaleAll

Urban81.5818.42100

All79.6320.37100

entrepreneurs (category wise).

CategoryMaleFemaleAll

2.2.3

Ownership of Enterprises Social Category Wise

Statement No.: 2.5 Percentage Distribution of enterprises by social group of owner in rural and urban Areas.

SectorSCSTOBCOthersNot knownAll

26

Annual Report 2020-21

2.2.3.2

Statement No.: 2.6 Percentage Distribution of Enterprises Social Category Wise

SectorSCSTOBCOthersNot known

Small5.501.6529.6462.820.39100

All12.454.1049.7232.950.79100

Figure 2.4 Percentage Distribution of type of Enterprises by Social Group of the Owner and category 2.2.4

Employment

2.2.4.1

rd round conducted during the period 2015-16, Statement No. 2.7: Estimated Employment in the MSME Sector (Activity Wise) Broad Activity CategoryEmployment (in lakh)Share (%)

RuralUrbanTotal

(1)(2)(3)(4)(5)

Other Services150.53211.69362.2233

All497.78612.101109.89100

*Non-captive electricity generation and transmission

Annual Report 2020-21

Figure 2.5: Distribution of employment in the MSME sector category wise *Non-captive electricity generation and transmission II. Statement No. 2.8: Distribution of employment by type of Enterprises in Rural and

Urban Areas

(Numbers in lakh)

SectorMicroSmallMediumTotalShare (%)

Urban586.8824.061.16612.1055

Figure 2.6: Percentage Share of Rural and Urban MSMEs in the Country 28

Annual Report 2020-21

Statement No. 2.9: Distribution of workers by gender in rural & urban areas (Numbers in lakh)

SectorFemaleMaleTotalShare (%)

Total264.92844.681109.89100

Share (%)2476100

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