The Role of Small Industries Development Bank of India (SIDBI)
International Conference on Technology and Business Management
March 26-28. 2012
The Role of Small Industries Development Bank of India (SIDBI) in developing the Micro, Small & Medium Enterprises (MSMEs) in India
Anand Chakravarthi anandc2707@gmail.com IBS, Hyderabad
1. Introduction to MSMES
The Micro, Small and Medium Enterprises (MSMEs) sector plays a vital role in the growth of our country in creating employment, exports, gross industrial value of output, gross value added, investment in fixed assets, contribution to GDP, and giving boost to manufacture, service and infrastructure sectors. The opportunities in
MSME sector are enormous due to the factors like Less Capital Intensive, Extensive Promotion & Support by
Government, Reservation for Exclusive Manufacture, Funding by way of Finance & Subsidies, Reservation for
Exclusive Purchase by Government, Export Promotion, great demand in the domestic market size, export potential and so on.
Under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 the filing of
Memorandum (Registration) by Entrepreneurs intending to establish a Micro, Small or Medium Enterprise is discretionary and not mandatory. As such, the number of MSMEs functioning in the country as per Quick
Results of 4th All India Census (2006-07), in the registered and unregistered categories are 1.55 Million (5.94%) and 24.55 Million (94.06%) respectively.
In this study, besides making a brief review of the overall performance of the MSME sector, the roles played by the Small Industries Development Bank of India (SIDBI) in empowering MSMEs and in acting as the nodal agency for SME schemes of Government of India, have been described.
SIDBI makes available the finance which MSMEs need. It helps them to expand, diversify and even rehabilitate. SIDBI also interfaces with Non-Governmental Organizations (NGOs) involved in micro-lending, as well as donor agencies engaged in the development of MSMEs. It supports
March 26-28. 2012
The Role of Small Industries Development Bank of India (SIDBI) in developing the Micro, Small & Medium Enterprises (MSMEs) in India
Anand Chakravarthi anandc2707@gmail.com IBS, Hyderabad
1. Introduction to MSMES
The Micro, Small and Medium Enterprises (MSMEs) sector plays a vital role in the growth of our country in creating employment, exports, gross industrial value of output, gross value added, investment in fixed assets, contribution to GDP, and giving boost to manufacture, service and infrastructure sectors. The opportunities in
MSME sector are enormous due to the factors like Less Capital Intensive, Extensive Promotion & Support by
Government, Reservation for Exclusive Manufacture, Funding by way of Finance & Subsidies, Reservation for
Exclusive Purchase by Government, Export Promotion, great demand in the domestic market size, export potential and so on.
Under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 the filing of
Memorandum (Registration) by Entrepreneurs intending to establish a Micro, Small or Medium Enterprise is discretionary and not mandatory. As such, the number of MSMEs functioning in the country as per Quick
Results of 4th All India Census (2006-07), in the registered and unregistered categories are 1.55 Million (5.94%) and 24.55 Million (94.06%) respectively.
In this study, besides making a brief review of the overall performance of the MSME sector, the roles played by the Small Industries Development Bank of India (SIDBI) in empowering MSMEs and in acting as the nodal agency for SME schemes of Government of India, have been described.
SIDBI makes available the finance which MSMEs need. It helps them to expand, diversify and even rehabilitate. SIDBI also interfaces with Non-Governmental Organizations (NGOs) involved in micro-lending, as well as donor agencies engaged in the development of MSMEs. It supports
References: March 26-28. 2012 SIDBI Report on Micro, Small, and Medium Industries Sector 2010.