A Study on Various Schemes for Msmes: With Special Reference to SIDBI

Abstract

The Micro, Small, and Medium Enterprises (MSME) sector is the base of the Indian economy as this sector has created employment for more than 120 million persons through 63.4 million units. MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities as well as 33.4% of India’s manufacturing output and contribute around 45% of the overall exports from India. This sector has consistently maintained a growth rate of over 10%. About 20% of the MSMEs based in rural areas indicate the deployment of significant rural workforce in the MSME sector; this shows the importance of these enterprises in promoting sustainable and inclusive development as well as generating large scale employment, especially in rural areas. SIDBI is the principal financial institution for promoting, financing, and developing of the Micro Small and Medium Enterprises (MSME). It supports the MSME sector to gain the needed strength and has introduced various schemes and initiatives to meet the various requirements of the sector. Hence in the present paper various schemes of SIDBI are discussed for the development of MSMEs.