DEVI AHIYA VISHWAVIDYALAYA

SCHOOL OF SOCIAL SCIENCES

COURSE – MBA(RURAL DEVELOPMENT)(2 SEM)

SUBJECT – RURAL ENTREPRENEURSHIP
SUBMITTED TO- NIDHI MA’AM
SUBMITTED BY-TANYA TRIVEDI
PROJECT ON-INCENTIVES AND SUSIDIES TO SSI
• SUPPORT SERVICES OFFERED TO MSMESECTOR
• The Corporation continued providing following support services to help the MSME sector to increase their
business and reach to enhance their competitiveness. NSIC provides integrated support services in the areas
of Marketing, Technology, Finance, etc.
• NSIC is also implementing the schemes of Marketing Assistance and Performance & Credit Rating on behalf of
the Ministry of Micro, Small & Medium Enterprises. The brief details are given below:
• - 1. Marketing Support  Marketing has been identified as one of the most important tools for business
development. It is critical for the growth and survival of MSMEs in today’s intensely competitive market. NSIC
acts as a facilitator and has devised a number of schemes to support enterprises in their marketing efforts,
both in domestic and foreign markets. 
• These schemes are briefly described as under:- A. Raw Material Distribution:
• In this direction, the Corporation has signed agreements /MoUs with the major bulk producers i.e.NALCO,
BALCO - for Aluminium, SAIL,RINL - for Iron Steel, CPCL - for ParaffinWax, CIL - for Coal and IOCL - for Polymer
products etc. These arrangements facilitate MSMEs in getting material at the manufacturer’s price with the
priority of dispatch. This results into reduction in the cost of production and making the products of MSMEs
competitive in the domestics well as international markets. These efforts of the Corporation supplement the
programmers of the Government aimed in making Indian MSMEs globally competitive.
• B. Consortia and Tender Marketing:
• Micro& Small Enterprises (MSEs) in their individual capacity face problems to procure and execute large
orders, which deny them a level-playing field vis-à-vis large enterprises.
• NSIC, accordingly forms consortia of micro & small units manufacturing the same products, there by pooling
in their capacity which provides comfort level to the concerned MSEs as suppliers and also to buyers
• C. Single Point Registration for Government Purchase: NSIC operates a Single Point
Registration Scheme under the Government Purchase Programme.
• The micro and small enterprises registered under this Scheme get the following facilities:-
• I. Issue of Tenders free of cost.
• II. Advance intimation of Tenders issued by DGS&D.
• III. Exemption from payment of EarnestMoney Deposit (EMD).
• IV. The tender participating MSEs quoting price within price band of L1+15% shall also be
allowed to supply a portion upto 20% of requirement by bringing down their price to L1 price
where L1 is non-MSE V. Issue of competency certificate.
• D. Exhibitions: To show case the competencies of Indian MSMEs, NSIC facilitates MSMEs
participations in International Exhibitions, Fairs, etc. on concessional terms under the
Marketing Assistance Scheme of the M/o MSME through partially meeting the cost towards
rent of stall as well as air fare. Participation in these events exposes MSMEs to international
practices and enhances their business prowess. Through participation in these events,
MSMEs are also facilitated to capture new markets making them globally competitive.
• E. Buyer – Seller Meets: Large and institutional buyers such as Railways, Defence,
Communication Departments and large companies are invited to participate in buyer-seller
meets to enrich micro & small enterprises’ knowledge regarding terms and conditions, quality
standards etc. required by the buyers. These meets are aimed at vendor development from
MSEs for the bulk manufacturers
•  F. Marketing Assistance Scheme:
• This is an ongoing scheme of the M/o MSME, for providing marketing support to MSMEs.  The scheme is
being implemented through the Corporation. Marketing, a strategic tool for business development, is
critical for the growth and survival of MSMEs in today’s intensely competitive market. One of the major
challenges before the MSME sector is to market their products/ services. The main objectives of the
scheme is to enhance the marketing competitiveness of MSMEs; to provide them a platform for interaction
with the individual/institutional buyers; to update them with prevalent market scenario and to provide
them a forum for redressing their problems. MSMEs are supported under the Scheme for capturing the
new market opportunities through organizing/ participating in various domestic & international
exhibitions/ trade fairs, Buyer-Seller meets, intensive campaigns and other marketing events.
• 2. Technology Support
• A. Technology is the key to enhance a unit’s competitive advantage in today’s dynamic information age.
MSMEs need to develop and implement a technology strategy in addition to financial, marketing and
operational strategies and adopt the one that helps in integrating their operations with their environment,
customers and suppliers.
• B. NSIC offers MSMEs the following technology support services through its Technical Services Centers and
Extension Centers: I.
• Material testing facilities through accredited laboratories II.
• Product design including CAD; III. Common facility support in machining,EDM, CNC, etc. IV. Energy and
environment services at selected Centres V. Practical training for skill upgradation
• 3. Credit Support  The Corporation is providing Credit Facilitation to MSMEs through its various schemes.
During 2013-14 total credit facilitation of Rs. 5,162 crore and (upto February, 2014, Rs.
• The various schemes providing Credit Support to MSMEs are as under:
• I. Meeting Credit Needs of MSMEs through tie-up arrangements with Banks One of the major
challenges faced by MSMEs is inadequate access to finance due to lack of financial information and
non-formal business practices. To overcome these problems, NSIC has entered into tie-up
arrangements with various Banks for providing Credit Facilitation to the MSME sector.
• II. Financing Procurement of Raw Materials & Marketing Activities (Short term) NSIC facilitates raw
material requirement of the MSMEs by making arrangements with bulk manufacturers for procuring
the materials and supplying the same to MSMEs. In case they need any credit support, NSIC
provides financial assistance for raw material procurement by making the payment to suppliers.
NSIC facilitates financing for marketing activities such as Internal Marketing, Exports and Bill
Discounting to micro, small & medium enterprises.
• III. Performance & Credit Rating Scheme for Small Enterprises On behalf of the M/o MSME, NSIC is
implementing “Performance & Credit Rating Scheme” for Micro and Small Enterprises (MSEs). The
scheme is being operated through accredited rating agencies i.e. CARE, CRISIL, India Rating
(Formerly known as FITCH), ICRA, ONICRA, SMERA and Brickwork Rating.The fee to be paid by the
MSEs for the rating, is subsidized by the Government to the extent of 75% of the rating fee up to a
maximum of Rs.40,000/-. The scheme has become quite popular and getting good response.
• The rating serves as a trusted third party opinion on the unit’s capabilities and credit worthiness. A
good rating enhances the acceptability of the rated unit in the market and also facilitates its access
to quicker and cheaper credit and thus helps in economizing the cost of credit.Under the
Performance & Credit Rating Scheme, 19,676 units were rated during the year 2012-13 as against
13,547 in the year 2011-12. The units rated during 2013-14 (upto February,2014) are 22,263 as
against 17,208 (upto February,2013).
•  Support Services
• One of the problems faced by the entrepreneurs is the scarcity of suitable space where they can set
up their offices or can exhibit their products for their wider publicity and easy marketability under
one roof. In order to give a boost to MSMEs, NSIC has taken the following projects in this regard:-
• A. Marketing Intelligence Cell  NSIC had established a Marketing Intelligence Cell for collecting and
disseminating both domestic and international marketing intelligence in coordination with other
concerned departments / agencies. Marketing Intelligence Cell is acquiring and analyzing information in
order to understand the market (both existing and potential customers) to determine the current and
future needs and preferences, attitudes and behaviour of the market, assess changes in the business
environment that may affect the size and nature of the market in future. This aims to promote business
horizons of MSMEs of India through Marketing Intelligence Web Portal. The beneficiaries are MSMEs
seeking business collaborations and co-production opportunities, joint ventures, exporters and
importers and those looking for technology transfer.
• B. Promoting International Trade through NSIC’s E-Marketing Web Portal NSIC has expanded its existing
B2B Web Portal into an Integrated E-Marketing Web Portal www.msmemart.com that is not only useful
for generation of leads for expanding businesses but it is also the most economical and fastest medium
for brand creation, recognition of small enterprises and marketing of their products.
• C. NSIC-Training-cum-Incubation Centres (NSIC-TICs) for promoting Entrepreneurship Training-cum-
Incubation Centres were started in year 2008 by NSIC with a view to create self-employment
opportunities by imparting training to the unemployed people who want to set up new small business
enterprises in any of the manufacturing / services sectors or seek employment opportunities. The
scheme is being operated under PPP [Private Public Partnership] mode where private partners are
associated with NSIC. 
• first generation entrepreneurs to acquire skills for enterprise building and also help to
incubate them to become successful small business owners.
• At these centres, exposure in all areas of business operations is provided such as business
skills, ideas for structure of an enterprise, identification of appropriate technologies, hands
on experience on working projects, financial linkages etc. In the year 2013-14, thirteen more
new centers were operationalised. As a result of this, now 81 such centres are operational
covering 19 states. 5. INTERNATIONAL CO-OPERATIONACTIVITIES  Under International
Cooperation, the focus of activities at the enterprise level is on the entrepreneurs and the
objective is to initiate long term and sustainable enterprise to enterprise cooperation
between Indian small enterprises and enterprises in target countries.
• This is achieved by exchanging business delegations and organizing one-on-one business
meetings among the enterprises of both the countries. Main features of International
Cooperation are:
• Exchange of Business / Technology missions with various countries;  Facilitating Enterprise
to Enterprisecooperation, Technology Transfers & other forms of sustainable collaboration; 
Explore new markets & areas of cooperation;  Identification of new export markets by
participating in exhibitions abroad;  Sharing of Indian experiences with other developing
countries. POLICY INITIATIVES 1. RESERVATION/DE-RESERVATION OF PRODUCTS FOR
MANUFACTURE IN THE MICRO AND SMALL ENTERPRISE SECTOR: A. The Policy of Reservation
of Products for Exclusive Manufacture in SSI (now MSEs) was initiated in 1967 with the
objective of achieving socio-economic development, through development and promotion of
small units all over the count
• Accordingly, the MSEs are being encouraged to modernize and enhance their
competitiveness for facing the challenges arising out of liberalization and globalisation of the
economy.
• B. The items are reserved/de-reserved in accordance with Section 29(B) of the Industries
(Development & Regulation) Act, 1951, which, inter-alia, provides for the constitution of an
Advisory Committee headed by the Secretary (MSME). The Advisory Committee makes its
recommendations for reservation/dereservation in light of the factors like economies of
scale; level of employment; possibility of encouraging and diffusing entrepreneurship in
industry; prevention of concentration of economic power and any other factor which the
Committee may think appropriate. At present, only 20 items are reserved for exclusive
manufacture in micro and small enterprise sector.
• A list of items reserved for exclusive manufacture in micro and small enterprises sector are
given below.
• LIST OF ITEMS RESERVED FOR EXCLUSIVE MANUFACTURE BY MICRO AND SMALL ENTERPRISE
SECTOR
• I. Pickles & chutneys II. Bread III. Mustard Oil (except solvent extracted) IV. Ground nut oil
(except solvent extracted) 
• WOOD AND WOOD PRODUCTS I. Wooden furniture and fixtures PAPER PRODUCTS I. Exercise books and
registers OTHER CHEMICALS AND CHEMICAL PRODUCTS I. Wax candles
•  II. Laundry soap
• III. Safety matches
• IV. Fire works
• V. Agarbatties
• GLASS AND CERAMICS
• I. Glass bangles MECHANICAL ENGG.
• EXCLUDING TRANSPORT EQUIPMEN
• T I. Steel almirah
• II. Rolling shutters
• III. Steel chairs-All types I
• V. Steel tables-All other types V. Steel furniture-All other types
• VI. Padlocks VII. Stainless steel utensils VIII. Domestic utensils
• 2. .NATIONAL MANUFACTURING COMPETITIVENESS PROGRAMME (NMCP)
• Providing competitive edge to the units in the MSME Sector in the global environment, has been one of the
important cornerstones of the policies being pursued by the Government for sustenance of the sector. With a
view to build the capacity of the Indian micro, small and medium manufacturing enterprises for overcoming
competition in the global markets and facing challenges being posed by the entry of the multinationals in the
domestic markets, the M/o MSME is implementing the National Manufacturing Competitiveness Programme
(NMCP). The objective of NMCP is to ensure healthy growth of the MSME Manufacturing Sector. 3. PUBLIC
PROCUREMENT POLICY FOR GOODS PRODUCED AND SERVICES RENDERED BY MICRO AND SMALL
ENTERPRISES (MSEs)
• In exercise of the powers conferred under Section 11 of the Micro, Small and Medium Enterprises
Development Act, 2006,
• the Government of India has notified Public Procurement Policy for Micro & Small Enterprises (MSEs) Order,
2012 which is applicable to every Central Ministry / Department / PSU for effective implementation w.e.f. 1st
April, 2012.
• B. The Policy mandates that every Central Ministry / Department / Public Sector Undertaking shall set an
annual goal of procurement from Micro and Small Enterprises from the financial year 2012-13 and onwards,
with the objective of achieving an overall procurement of minimum of 20 percent of total annual purchases
of products produced and services rendered by Micro and SmallEnterprises, in a period of three years.
• C. Every Central Government Ministry / Department / PSU shall report the goals set with respect to
procurement to be met from MSEs and the achievement made thereto in their respective Annual Reports.
They shall also prepare Annual Procurement Plan for purchases and upload the same on their official website
so that Micro and Small Enterprises may get advance information about requirement of procurement
agencies.
• All the Chief Ministers of State Governments have also been advised to formulate similar policy for MSEs in
their states. A Grievances cell has been constituted for redressal of the grievances for MSEs.
• D. The Policy will help to promote MSEs by improving their market access and competitiveness through
increased participation by MSEs in Government purchases and encouraging linkages between MSEs and large
enterprises. The Ministry of Micro, Small and Medium Enterprises is the nodal Ministry for formulation of
policies, programmes and schemes, their implementation and related co-ordination, for the promotion and
development of small scale industries in India. The role of the Ministry is to assist the States in their efforts
for the growth of the small scale sector, by enhancing their competitiveness in an increasingly liberalised
economy.
• It is assisted by an attached office and two public sector enterprise, namely:
• - A. Micro, Small and Medium Enterprises Development Organisation (MSME-DO):-
•  Besides
• , there are three national level 'Entrepreneurship Development Institutes (EDIs)' for the
development of training modules, undertaking research and providing consultancy services for
entrepreneurship development in the small scale sector. These include:-
• 1. National Institute of Small Industry Extension Training (NISIET) renamed as the National
Institute for Micro, small and Medium Enterprises (NIMSME) at Hyderabad
• 2. National Institute of Entrepreneurship and Small Business Development (NIESBUD) at Noida
• 3. Indian Institute of Entrepreneurship (IIE) at Guwahat Certain Incentive
• s 1. Fiscal incentives  Fiscal incentives are provided through tax concessions granted in the form
of exempted of direct or indirect taxes leviable on production or profits, besides special tax
concessions. 
• These incentives have been provided to promote the SSIs and discussed in following:
• A. Tax Holiday  With effect from financial year 2005-06, deduction in respect of profit and gains
for small scale industrial undertaking is available under Section 80IB
• .  Small scale industrial undertaking can claimdeduction at the following rates: o If SSI unit is
owned by a company , the deduction available is 30% for first 10 year, o If SSI unit is owned by a
co-cooperative society, the deduction to be availed is 25% for first 10 years, and o If any other
person owns SSI units ,the deduction to be claimed is 25% for first 10 years.
• B. TAX EXEMPTION CONDITIONS
•  No small scale or ancillary undertaking shall be subsidiary of, or owned or controlled by other
industries undertaking.  The SSI unit should commence business between 1st April1991 and
31st March 2002.  SSI unit can manufacture any nature/type of goods /article to avail
deduction.
THANKYOU