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Discussion on Amendments in the MSMED Act 2006

Discussion on Amendments in the MSMED Act 2006
Start Date :
Jul 05, 2024
Last Date :
Aug 05, 2024
23:45 PM IST (GMT +5.30 Hrs)
Submission Closed

The Ministry of MSME is in the process of amending the MSMED Act, 2006. In this regard, this Ministry had consulted various central Ministries/Department/State Govt./Industry ...

The Ministry of MSME is in the process of amending the MSMED Act, 2006. In this regard, this Ministry had consulted various central Ministries/Department/State Govt./Industry Associations/other stakeholders & general public.

Based on the consultations and written inputs received from various stakeholders, the amendments proposed in the MSMED Act, 2006 are based on the following four key pillars:

A) Enhancing inclusivity and broad-basing the scope of the Act;
B) Future-proofing the Act;
C) Improving co-ordination under the Act;
D) Enhancing the ease of business in the ecosystem;

A) Enhancing Inclusivity and Broad-basing the scope of the Act
• Accord statutory status to Udyam registration for availing benefits under the Act.
• Provision for credit guarantee coverage to Micro and Small Enterprises by Government.
• Enabling provisions to address issues of credit gap; shortage of working capital; ensure adequate, affordable, and timely finance to enterprises; minimize the incidence of financial stress among enterprises; and leverage new and emerging platforms and technologies such as the Trade Receivables Discounting System, Account Aggregator Framework, etc.
• Provision for targeted mechanisms for capacity building of women, members of SC and ST, and rural artisans and craftspeople and provisions for market access, financial and digital literacy.
• Inclusion of cottage, village, and coir industries as rural artisans and craftspeople in the MSME classification scheme, to promote rural industries and enterprises.
• Inclusion of Medium Enterprises in the dispute resolution framework

B) Future-proofing the Act
• Strengthen provisions for technological upgradation and green technology to enhance productivity, quality, and competitiveness.
• Enabling provisions for the adoption of energy-efficient, sustainable technologies by MSME.
• Designation of a Green Fund to support the energy transition of MSME and integration in the global value chain.
• Addressing industrial obsolescence among enterprises.
• Promoting technological upgradation and research and development among enterprises.
• Encouraging the adoption of sustainable technology solutions by enterprises.

C) Improving coordination
• Streamline the structure, working, and functions of the National Board and the Advisory Committee to make them lean, efficient, and responsive to the requirements of MSME, and strengthen the monitoring and evaluation mechanism.
• Provision to set up an adequate number of Facilitation Councils in States for better access to MSMEs, along with an incentive structure to promote competition and good performance among them.
• The composition of the Facilitation Councils may be prescribed by the State Government.

D) Enhancing Ease of Business in the Ecosystem
• Provisions for the decriminalisation of offences by converting criminal fines into civil penalties.
• Simplification of regulatory clearance mechanism and procedure for establishment and management of MSME by making suitable provisions in the Rulemaking powers of the appropriate Government.
• Creating and encouraging the adoption of digital solutions to improve transparency and foster a culture of accountability
• Make the adjudication process simpler and speedier, aligning it with the alternative dispute resolution framework and online dispute redressal.

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Showing 768 Submission(s)
Nayan sarkar
Nayan sarkar 1 year 9 months ago
Act is good.but it has some Challenges. Challenges and Areas for Improvement: Capital Constraints: MSMEs often face a lack of capital, hindering their growth and competitiveness.They need many policies for survival like regular investment,tax cut. Skills Gap: Many MSMEs lack management and specialized skills, affecting their efficiency and ability to adapt. Government should also provide more management and Buisness skill and support them through PSUs to grow both. Labor Intensive vs. Capital Intensive: The shift towards capital-intensive units after liberalization impacted employment and output. we need to ensure that more people generate profit,not lose. Reservation Policy Evaluation: Assessing the effectiveness of the reservation policy for MSMEs is essential. Plus we need to ensure that these reforms and act facilities can be delivered faster and in as simple as possible.
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Soniya tetarwal
Soniya tetarwal 1 year 9 months ago
The MSMED Act of 2006: 1-The Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006 was amended in 2018 to provide a boost to the MSME sector, which is the backbone of India's economy. The amendments aimed to simplify the classification process, increase the threshold limits, and provide a more robust framework for the growth and development of MSMEs. 2-One of the significant changes was the shift from investment-based classification to turnover-based classification. Earlier, MSMEs were classified based on their investment in plant, machinery, and equipment. However, this method had its limitations, as it did not consider the actual performance and growth of the enterprises. The new classification system, based on annual turnover, provides a more accurate representation of an enterprise's size and scale. 3-The amended Act also introduced a uniform classification system for all MSMEs, eliminating the earlier distinction between manufacturing and service sector enterprises.
mygov_1720752797126159671
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DANDUSIVAKUMAR
DANDUSIVAKUMAR 1 year 9 months ago
MSMED Act- 2006 abbreviation is Micro, Small and Medium Enterprises Development Act - 2006. This provides GDP, which means Gross Domestic Product. India's Economic Development rate in GDP has the main factor. Finally increased our India's National Income.In this topic I talk about that our country's amendments history in one of the best amendment is MSMED ACT - 2006. Thanks with regard Sir !
mygov_1720729169148737017.pdf
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Shivam Kumar
Shivam Kumar 1 year 9 months ago
The Miniature, Little, and Medium Endeavors Advancement (MSMED) Demonstration of 2006 has seen a few corrections throughout the years to address arising difficulties and upgrade support for MSMEs in India. Definition and Characterization: The Demonstration updated the models for characterizing miniature, little, and medium undertakings in light of interest in plant and apparatus or hardware, and presented turnover-based rules. This aides in better order and designated help. Credit and Money: Revisions have zeroed in on further developing admittance to credit and back for MSMEs through drives like the Credit Assurance Asset Trust for Miniature and Little Undertakings (CGTMSE), which gives security free advances to private companies. Innovation Upgradation: The Demonstration energizes innovation reception and modernization among MSMEs through different motivators and backing components, encouraging intensity and efficiency improvement.
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Deepali Hingne adv
Deepali Hingne adv 1 year 9 months ago
acted within ambit of law so flexibly apply duty & profit point of view 1st-rules should be easily gain by stakeholders & if provide step by step like a stair how the business goes according 2it apply rule few time it get time 2profit or loss so it do- time bound within limit of period it help establish business according 2changing aspect of society then if easy availability by digital problem solving connectivity- central state & local authority now - r country way on developing roads infrastructure _ in good connectivity so road problem less & if that connectivity with digital transport according the area so this will also help in remote village area even - far from village in act - especial provision focus on area where need more availability cause due 2good infrastructure people _ time saving (most important) & good roads save vehicle condition means even work cn be done within day from morning if start even returns at night so - if this has 2extent whole of India..
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kunal kishore
kunal kishore 1 year 9 months ago
MSME sector is a backbone of country business activity.there are some point related to it.i have discuss this point. 1 A national policy has been framed to consider all thing related to it. 2 Policy will be business oriented and break all hurdle related any kind of trade activity. 3 A proper training policy has been mentioned in this act. 4 Rules will be practical and easily and quick implemented at ground level.
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