Background

According to the Fourth All India Census of MSME 2006-07, the MSME sector provides employment to approximately 805.23 lakh persons through an estimated 361.76 lakh enterprises. 55.34% of these enterprises were in rural areas while 44.64% are in urban areas. 68.21% of the enterprises were engaged in services with remaining 31.79% engaged in manufacturing. These enterprises are primarily engaged in activities pertaining to wholesale / retail trade; repair of personal and household goods; manufacture of food products and beverages; manufacture of wearing apparel; dressing and dyeing of Fur; manufacture of textiles; hotels and restaurants; sale, maintenance and repair of motor vehicles and motorcycles; retail sale of automotive fuel; manufacture of furniture; education; and other businesses / services.

The country is facing challenges of providing employment and livelihood to the growing population. The MSME sector has a great potential to address the same. Acknowledging the vast potential of innovative enterprises and agro based industries in MSME sector, the Hon’ble Finance Minister in his Budget Speech 2014-15, delivered in the Parliament on 10-07-2014, said:

104. “To Establish Technology Centre Network to promote Innovation, Entrepreneurship and Agro-Industry, I propose to set up a fund with a corpus of Rs.200 crore.”

105B. ”A programme to facilitate Forward and Backward linkages with multiple value chain of manufacturing and service delivery will also be put in place.”

106B. ”A Nationwide “District level Incubation and Accelerator Programme” would be taken up for incubation of new ideas and providing necessary support for accelerating entrepreneurship.”

The “Make in India” call also seeks to identify and create a favorable eco-system for encouraging the start-ups and drive the manufacturing domain with sustained employment opportunity creation and to raise the level of skilling for successful and sustainable enterprise creation. The proposed scheme is designed to provide the necessary skill set for setting up business enterprises and also to facilitate the market linkages available to the entrepreneurs and last but not the least to provide hand holding for a critical period to ensure self-sustainability.

The main objectives of the scheme are to:

1. Create new jobs and reduce unemployment,
2. Promote entrepreneurship culture in India,
3. Grassroots economic development at district level,
4. Facilitate innovative business solution for un-met social needs, and
5. Promote innovation to further strengthen the competitiveness of MSME sector.